How AI can help you budget and manage your money
22 April 2024
We all know someone who spends like crazy – and someone who's pretty hush when it’s time to split the bill. No matter how you choose to splash your cash around, a budget can help you stay on track with your financial goals.
If the thought of budgeting makes you drift off, there’s good news. The combination of AI and budgeting can transform a lengthy task into one that’s fast and even fun. Here’s some tips, tools, and automations that can help streamline your financial planning.
AI – from future fantasy to modern reality
AI is no longer a distant dream but a part of daily life. AI tools can help with almost any activity you can think of. For example, you can use AI to:
- create a family menu plan
- suggest an itinerary for your next holiday
- run your business more efficiently
- come up with theme ideas for your office party.
AI’s ability to quickly process complex information makes it an ideal partner for budgeting and financial planning.
How to budget using AI
To use AI for budgeting, start by choosing a reputable AI-driven financial tool or app (see some suggestions below). You’ll need to link your bank accounts, credit cards, and other financial accounts to the tool.
It goes without saying, make sure the app you’re using is safe and secure, to ensure your data is protected.
Once connected, the AI analyses your transactions and generates insights into your financial behaviour. To prompt the AI, ask it questions or set specific financial goals. For instance, you could ask:
- What are my monthly expenses?
- How can I save more each month?
- How long will it take me to save $X amount?
The tool will provide tailored recommendations based on your financial history.
AI outputs are only as good as the data you put in, so try to include comprehensive information in your queries. Be as specific as you can about your savings goals.
Always check the numbers an AI provides and confirm advice with a credible human source, such as someone from your bank or a certified financial planner.
AI and budgeting: Tools to help you manage your money
Numerous AI-powered tools go beyond traditional budgeting apps to offer personalised insights, alerts to help you dodge budget blowouts and strategies to shore up your bottom line. We’ve found some of the best ones out there.
1. YNAB (You Need a Budget)
More than an app, YNAB is a money management method designed to help you grow your savings and learn to spend your money wisely.
Features include:
- real-time tracking: get up-to-date information about your spending habits and progress towards financial goals
- AI reporting: colourful graphs and charts that make it easy to visualise your expenses and savings
- loan calculator: work out the time cut from your loan repayments for every extra dollar of debt you pay down.
2. WeMoney
WeMoney describes itself as a ‘social financial wellness app’ that’s designed to help you track and eliminate debt. Here, you can link all your accounts to the app and get a full picture of your money. It then will show you where you can save.
Features include
- debt consolidation: to help you find deals to turn multiple debts into a single, easy repayment
- subscription finder: to stop the money suck by finding and cancelling things you’re paying for but no longer use
- bank-grade security: with high-tech features like end-to-end encryption and secure information storage
3. Frollo App
The Frollo app is one tool in Frollo’s open banking platform. Its aim is to help everyday Australians turn their finances around and get ahead – quickly and simply. You can connect your accounts to see your full financial picture and then set up a budget in moments.
Features include:
- automatic goal tracking: set your goals, link them to an account, then let the app track your progress
- automatic bill tracking: avoid nasty surprises with alerts to let you know when bills are coming up
- financial passport: simplifies the borrowing process by giving lenders a thorough overview of your finans.
4. Virgin Money app
If you have a Virgin Money Go Account, and Boost Saver or Grow Saver, then you could be taking advantage of all the automations within the Virgin Money app, including:
- Spend tracker: track your spending, tag your transactions for a fuller picture of where your money goes, and even find the top five brands you spend with (yep, it sees your fast food or shoe addiction, but no judgement).
- Goal setting: smash your savings goals with real-time insights, and an option to lock your account and earn extra interest.
- Bill tracking: avoid late fees and keep your credit score in tip-top shape with bill tracking and payment reminders.
Keeping your information secure
When you’re using AI tools for financial planning, it's crucial to consider the security of your personal data. Before connecting any third party apps, check online reviews about their safety and reliability.
Choose apps with solid security measures, transparent privacy policies, and positive user feedback to help safeguard your financial information. These can be helpful when choosing the right app for you.
Open an account with the Virgin Money app
Download the Virgin Money app and keep track of your spending with the use of technology right at your fingertips.