Having solid savings feels incredible. It’s a building block in having financial freedom– allowing you to meet your money goals and not be thrown into a crisis by unexpected expenses.
Putting aside money on the other hand? Absolutely sucks. It’s hard to make a sacrifice towards a goal that you won’t feel feel the reward of for a while. But it’s absolutely worth it when you reach the goal. Luckily, AI budgeting tools can help bridge the gap between putting aside money and reaching your financial goals.
With tools like autosave (so you can save on autopilot), smart budgets, and real-time insights, IA technology can help you cut out life admin and maximize your savings.
Understanding AI-Powered Budgeting Tools
AI budgeting tools are apps that use artificial intelligence to help you budget as efficiently as possible. Unlike traditional methods, these tools don't rely entirely on manual data entry and calculations– think crying over an Excel spreadsheet as you add-in all your expenses for the day. Instead, they harness the power of AI to analyze and interpret your money data, giving you a more in depth look at your money situation. AI changes traditional budgeting by using data-driven insights, patterns, and predictions to help you make smarter money moves.
The Key Benefits of AI Budgeting Tools
Accurately Tracking Income and Expenses
AI Budgeting apps will give you a complete picture of your income and expenses throughout the day/week/month– in a way that’s more efficient than manually entering all your expenses, and leaves less room for error. This is the first step to creating a budget and building savings. It can feel overwhelming to some to see the reality of their finances, but don’t worry– it’s also the first step to fixing your financial health.
Cleo will track your income and expenses as soon as you connect your main bank account. Don’t worry, you won’t be charged– the free version of Cleo comes with all the fancy budgeting features. She just uses the information from your bank to track your income and expenses.
Categorization of Spending for Better Visualization
The great thing about AI is that is can then automatically categorize your transactions with higher accuracy giving you a clearer picture of your spending habits. So for example with Cleo, she’ll sort your spending into categories like groceries, transport, bank charges. She’ll also give you a visualization of how much you’ve spent on each category. This visualization is easier to understand than just a figure because you can see how it compares to other categories and your budget as a whole.
AI budgeting tools often offer real-time syncing with bank accounts, credit cards, and other financial platforms. This means that your AI budget app is always up to date on your spending, and can give you timely advice. Like, for example, Cleo will DM you when you’re about to hit a spend limit for a certain category or let you know when a bill is about to come out. Unlike traditional budgeting, where you only get these insights at the end of the budget cycle.
Customized Budget Recommendations
AI-driven budgeting tools analyze your spending patterns and financial habits to create you a tailored budget. These suggestions are tailored to your individual circumstances, spotting areas where you can cut back on spending that you would otherwise probably miss. This leads to the next point.
Identification of Saving Opportunities and Wasteful Expenses
AI's analytical prowess goes beyond routine categorization. It can identify patterns and trends in your spending behavior, highlighting potential opportunities for savings and even pointing out wasteful expenses that might have gone unnoticed otherwise. Like your Uber habit. Sorry to call you out.
Setting Financial Goals and Monitoring Progress
Many AI budgeting tools allow you to set financial goals, like saving for a vacation or paying off debt. These tools then track your progress toward these goals and suggest adjustments to ensure you stay on track. With Cleo, it’s as easy as just typing “I want to save $200 a month” into chat, and Cleo will take you where you need to go.
In fact, Cleo can make this happen on autopilot. Type “autosave” into the chat to find out more.
Implementing AI Budgeting Tools to Maximize your Savings
Here’s how you get started.
Initial Setup and Getting Connected: To get started, you'll need to create an account and link your bank accounts.
Setting Financial Goals and Savings Targets: Set your financial goals, whether it's building an emergency fund, paying off a loan, or saving for a big purchase. Define your desired savings targets and timelines.
Reviewing and Fine-Tuning Your Budget: AI is a super helpful tool, but you have to work with it. Stay engaged by reviewing your budget, understanding the insights provided by the AI, and making decisions based on your priorities to adjust your budget.
You’ve got this. Cleo’s got your back.
There’s only one thing left to do…