Can ChatGPT Help You To Achieve Financial Literacy, How to create a budget, How to invest in the stock market, How to plan for early retirement, How I can save my taxes
ChatGPT has brought a huge revolution in the AI industry in the recent few months. People have asked different questions related to their field of interest whether it is related to finance, IT, health care, business, sports, politics, etc.
When I asked the title question to the chatGPT, I got an amazing response. ChatGPT mentioned that it can help in making effective decisions in finance. It can easily assist in complicated financial concepts like budgeting, saving, investing, and many more. Apart from this, chatGPT can also provide knowledge of financial terminology and concepts. It can also advise on how to accomplish financial goals.
Some of the aspects related to personal finance in which chatGPT can assist are:
- Creating budget
- Framing strategies to save money
- Ways to Invest in the stock market
- Benefits and drawbacks of several types of credit
- Tips to handle debt
- Planning to retire early and many more.
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How to create a budget?
The next question I asked chatGPT is how I can create a budget. It clearly stated the steps to be followed to create a budget like determining the income, listing and categories all the expenses which are avoidable and unavoidable, determining the spending limits and sticking to the budget. Next, I asked to provide an example of budget and chatGPT presented an example given below:
I believe that the example is perfect for a layman to understand what the budget looks like.
How to invest in the stock market?
After creating a budget, the next question I asked is how I can invest in the stock market. Again, chatGPT listed basic steps like learning the basics, setting an investment goal, opening a brokerage account, researching stocks, creating a diversified portfolio, and monitoring your portfolio on regular basis.
I believe that these steps are suitable for a beginner to have knowledge about stocks, brokerage account, and diversified portfolio.
ChatGPT also warned to not to invest more money than one can afford to lose because stop market is risky and the advice of financial professionals is essential to make any investment decision.
After this I asked for stock suggestions, chatGPT stated that it cannot advise or recommend the stock because it cannot access the recent information about an organization and the analysis requires investigating the previous years’ financial reports.
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How to plan for early retirement?
The next question I asked chatGPT is how to plan for early retirement and it provided a basic layout like setting a goal, accessing your current financial situation, creating a retirement savings plan, managing the expenses, looking for professional guidance, and observing the progress.
This was very basic information for a layman. To further enhance clarity, I asked to provide an example and it beautifully quoted two examples for a US citizen and an Indian.
You will be surprised to know that when I asked about my early retirement plan, chatGPT provided the response regarding how much should I invest on monthly basis and the expected capital appreciation by investing the same in multiple investment options.
How I can save my taxes?
The next question asked to chatGPT was how to save taxes and the suggested ways included investing in:
- Tax saving fixed deposit
- Equity-linked saving schemes
- National pension system
- Buying health insurance
- Donations to charitable causes
- Home loan interest payment
To conclude, chatGPT is a perfect tool to have basic knowledge or understanding of finances. It can also provide customized solutions to your finance-related queries. Although, it cannot recommend or suggest, but it advises getting an opinion of a financial consultant before making any financial decision.
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