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Finance & Money

The AI Journey for Everyday Budgeter

An everyday budgeter, tired of feeling stressed about money, decides to take control of their finances. They start by using AI to categorize their bank transactions, finally understanding where their money goes each month. With this new clarity, they create a realistic monthly budget and a concrete plan to pay off their credit card debt. To stay motivated, they use AI to track their progress and celebrate small wins. As they build confidence, they use AI to create savings plans for big goals like a vacation and a down payment on a house. They even start learning about investing, using AI to explain complex financial terms and suggest a sample portfolio based on their risk tolerance. Finally, they use AI to prepare for tax season and optimize their credit card rewards, transforming from someone who avoided their finances to someone who feels empowered and in control of their financial future.

Interactive Use Cases

Follow along with real scenarios and try the AI prompts yourself

Step 1
budgetingtrackingcategorization
To understand where their money is going, categorize pasted bank transactions into spending categories.
An everyday budgeter feels like they are constantly running out of money before their next paycheck, but they don't know why.

Scenario

An everyday budgeter feels like they are constantly running out of money before their next paycheck, but they don't know why.

Goal

To get a clear, categorized breakdown of their monthly spending to identify where their money is actually going.

AI Solution

AI automatically categorizes a pasted list of bank transactions into groups like 'Groceries,' 'Transport,' and 'Entertainment,' providing instant clarity.

AI Prompt
Categorize these bank transactions into spending categories: [paste transactions here]
Step 2
budgetingplanningfinancial planning
To create a roadmap for their financial goals, create a monthly budget plan based on their income and expenses.
After seeing where their money goes, the budgeter wants to create a plan to manage their spending more effectively.

Scenario

After seeing where their money goes, the budgeter wants to create a plan to manage their spending more effectively.

Goal

To create a simple monthly budget that they can stick to, allowing them to cover their needs and save for their goals.

AI Solution

Based on their income and categorized expenses, AI generates a sample monthly budget with suggested spending limits for each category.

AI Prompt
Create a monthly budget for me. My monthly income is $4000, and my main expenses are rent, groceries, and transportation.
Step 3
spending analysispatternsinsights
To identify areas for potential savings, analyze spending patterns from their transaction data.
The budgeter is sticking to their new budget but wants to find more opportunities to save money.

Scenario

The budgeter is sticking to their new budget but wants to find more opportunities to save money.

Goal

To identify the top 3 spending categories where they can most effectively cut back without a major lifestyle change.

AI Solution

AI analyzes their transaction data and highlights spending patterns, such as 'You spend an average of $150 per month on lunches out.'

AI Prompt
Analyze my spending and tell me the top 3 categories where I can save money.
Step 4
debt payoffcalculationsstrategy
To get out of debt faster, calculate a debt payoff strategy based on their balances and interest rates.
The budgeter has credit card debt with a high interest rate and wants to create a plan to pay it off as quickly as possible.

Scenario

The budgeter has credit card debt with a high interest rate and wants to create a plan to pay it off as quickly as possible.

Goal

To get a clear, step-by-step plan to pay off their credit card debt, including how much to pay each month.

AI Solution

AI calculates both the debt avalanche and snowball methods, showing the total interest paid and time to payoff for each, helping them choose the best strategy.

AI Prompt
I have two credit cards. Card A has a $2000 balance at 18% interest. Card B has a $5000 balance at 22% interest. Should I use the debt avalanche or snowball method to pay them off?
Step 5
savingsgoal planningachievement
To make a dream purchase a reality, create a savings plan for a specific financial goal like a vacation or down payment.
With their debt under control, the budgeter wants to start saving for a down payment on a house, which feels like a huge, unattainable goal.

Scenario

With their debt under control, the budgeter wants to start saving for a down payment on a house, which feels like a huge, unattainable goal.

Goal

To create a realistic savings plan that breaks down their large goal into manageable monthly savings targets.

AI Solution

AI creates a personalized savings plan, calculating that they need to save $450 per month to reach their $10,800 goal in two years.

AI Prompt
Create a savings plan for me to save $10,000 for a down payment on a house in two years.
Step 6
insurancecomparisondecision making
To ensure they are not overpaying for insurance, compare insurance quotes and explain the differences in coverage.
The budgeter's car insurance is up for renewal, and they suspect they might be paying too much.

Scenario

The budgeter's car insurance is up for renewal, and they suspect they might be paying too much.

Goal

To understand the key differences between three car insurance quotes and choose the one that offers the best value.

AI Solution

AI summarizes the key features of each insurance quote in a simple table, explaining the differences in deductibles, coverage limits, and price.

AI Prompt
Compare these three car insurance quotes and explain the main differences in coverage and cost.
Step 7
financial educationexplanationslearning
To feel more confident in their financial decisions, get simple explanations for confusing financial terms and concepts.
As the budgeter starts to learn more about personal finance, they keep encountering terms like '401(k),' 'IRA,' and 'index fund' that they don't understand.

Scenario

As the budgeter starts to learn more about personal finance, they keep encountering terms like '401(k),' 'IRA,' and 'index fund' that they don't understand.

Goal

To get a simple, easy-to-understand explanation of a financial concept without all the confusing jargon.

AI Solution

AI explains complex financial terms in simple language, using analogies to make the concepts easier to grasp, like 'A 401(k) is like a retirement savings piggy bank offered by your employer.'

AI Prompt
Explain what a Roth IRA is in simple terms.
Step 8
retirement planningsavingsestimates
To see if they are on track for retirement, create a retirement savings estimate based on their age and income.
The budgeter is starting to think about the long term and wonders if they are saving enough for retirement.

Scenario

The budgeter is starting to think about the long term and wonders if they are saving enough for retirement.

Goal

To get a rough estimate of how much they need to have saved for retirement and whether they are on track.

AI Solution

AI provides a simple retirement savings calculation based on their age, income, and current savings, giving them a target to aim for.

AI Prompt
I'm 30 years old and have $50,000 saved for retirement. My annual income is $60,000. Am I on track for retirement?
Step 9
goal trackingprogressmotivation
To stay motivated on their financial journey, track their progress toward their financial goals.
The budgeter has been following their plan for a few months but is starting to lose motivation as their big goals still feel far away.

Scenario

The budgeter has been following their plan for a few months but is starting to lose motivation as their big goals still feel far away.

Goal

To create a simple dashboard that tracks their progress on paying down debt and building savings.

AI Solution

AI creates a visual progress tracker, showing that they have paid off 20% of their credit card debt, which helps them stay motivated.

AI Prompt
Create a progress tracker for my goal of paying off $5,000 in credit card debt. I've paid off $1000 so far.
Step 10
cost cuttingsavingsoptimization
To free up more money for savings, get suggestions on ways to reduce expenses based on their spending list.
The budgeter wants to accelerate their savings and is looking for more ways to cut costs.

Scenario

The budgeter wants to accelerate their savings and is looking for more ways to cut costs.

Goal

To get a list of actionable suggestions for reducing their monthly bills and discretionary spending.

AI Solution

Based on their spending categories, AI suggests specific ways to save, such as 'negotiate your cable bill' or 'switch to a cheaper cell phone plan.'

AI Prompt
Give me some suggestions on how to reduce my monthly expenses. I spend a lot on groceries and subscriptions.
Step 11
emergency fundplanningsecurity
To protect against unexpected life events, create an emergency fund plan based on their monthly expenses.
The budgeter recently had an unexpected car repair that strained their finances and made them realize they need a safety net.

Scenario

The budgeter recently had an unexpected car repair that strained their finances and made them realize they need a safety net.

Goal

To calculate the ideal size of their emergency fund (3-6 months of expenses) and create a plan to build it up.

AI Solution

AI calculates their target emergency fund based on their monthly expenses and helps them create a separate, achievable savings plan for it.

AI Prompt
My monthly expenses are about $2500. How much should I have in my emergency fund, and how can I create a plan to save for it?
Step 12
loan comparisoncalculationsdecision making
To make a smart borrowing decision, compare loan options and calculate the total cost of each.
The budgeter is considering a personal loan to consolidate their remaining debt but is presented with several different options.

Scenario

The budgeter is considering a personal loan to consolidate their remaining debt but is presented with several different options.

Goal

To understand the true cost of each loan option, including total interest paid over the life of the loan.

AI Solution

AI creates a comparison table that clearly shows the monthly payment, total interest paid, and loan term for each option, making the best choice clear.

AI Prompt
Compare these two loan options: Loan A is $10,000 at 5% interest for 3 years. Loan B is $10,000 at 4.5% interest for 5 years.
Step 13
investment planningallocationrisk management
To start growing their wealth, get investment allocation suggestions based on their risk tolerance.
Having built up their emergency fund, the budgeter is now ready to start investing but is afraid of making a mistake.

Scenario

Having built up their emergency fund, the budgeter is now ready to start investing but is afraid of making a mistake.

Goal

To get a sample investment portfolio allocation that matches their stated risk tolerance (e.g., conservative, moderate, aggressive).

AI Solution

Based on their answers to a few questions about risk, AI suggests a sample portfolio, such as '80% in a low-cost S&P 500 index fund and 20% in a total bond market fund.'

AI Prompt
I'm a beginner investor with a moderate risk tolerance. How should I allocate my investments?
Step 14
subscriptionsanalysiscost optimization
To cut down on recurring monthly charges, analyze their subscription services and get suggestions on which to cancel.
The budgeter suspects they are paying for multiple subscription services that they no longer use.

Scenario

The budgeter suspects they are paying for multiple subscription services that they no longer use.

Goal

To get a list of all their recurring subscriptions and decide which ones to cancel to save money.

AI Solution

AI analyzes their bank transactions to identify recurring subscription payments and presents them in a list, making it easy to see and cancel unused services.

AI Prompt
Analyze my bank statement and list all my recurring subscriptions.
Step 15
tax preparationchecklistsorganization
To make tax season less stressful, create a tax preparation checklist based on their financial situation.
Tax season is approaching, and the budgeter feels anxious and disorganized about gathering all the necessary documents.

Scenario

Tax season is approaching, and the budgeter feels anxious and disorganized about gathering all the necessary documents.

Goal

To get a personalized checklist of all the tax documents they need to gather based on their financial situation.

AI Solution

AI generates a customized tax preparation checklist, including items like their W-2, 1099s for freelance income, and student loan interest statements.

AI Prompt
Create a tax preparation checklist for a single person with a full-time job and some freelance income.
Step 16
home buyingaffordabilitycalculations
To determine if they can afford to buy a home, calculate home affordability based on their income and expenses.
The budgeter has been saving for a down payment and is starting to look at houses, but they aren't sure what price range is realistic for them.

Scenario

The budgeter has been saving for a down payment and is starting to look at houses, but they aren't sure what price range is realistic for them.

Goal

To get a realistic estimate of how much house they can comfortably afford based on their income, debts, and down payment.

AI Solution

AI calculates a home affordability estimate, including the projected monthly mortgage payment, property taxes, and insurance (PITI).

AI Prompt
How much house can I afford? My annual income is $70,000, I have $20,000 for a down payment, and my monthly debt payments are $500.
Step 17
milestonestimelinesplanning
To visualize their path to financial independence, create a financial milestone timeline based on their goals.
The budgeter feels empowered by their progress and wants to visualize their long-term financial journey.

Scenario

The budgeter feels empowered by their progress and wants to visualize their long-term financial journey.

Goal

To create a timeline that maps out their major financial goals, such as being debt-free, buying a house, and reaching a specific retirement savings number.

AI Solution

AI generates a visual timeline that plots their financial goals over the next 5, 10, and 20 years, providing a clear and motivating roadmap.

AI Prompt
Create a financial milestone timeline for me. My goals are to be debt-free in 3 years, buy a house in 5 years, and have $1 million saved for retirement in 30 years.
Step 18
toolsrecommendationsefficiency
To find the right tools for their needs, get suggestions for budgeting apps and tools.
The budgeter has been using a simple spreadsheet but is wondering if a dedicated budgeting app might be more efficient.

Scenario

The budgeter has been using a simple spreadsheet but is wondering if a dedicated budgeting app might be more efficient.

Goal

To get a recommendation for a budgeting app that aligns with their specific goals, such as tracking expenses or paying off debt.

AI Solution

Based on their stated preferences, AI recommends a few top-rated budgeting apps and explains the key features of each.

AI Prompt
What are the best budgeting apps for someone who wants to track their spending and pay off debt?
Step 19
bill managementschedulingcash flow
To avoid late fees and manage cash flow, create a bill payment schedule.
The budgeter occasionally forgets to pay a bill on time, resulting in frustrating late fees.

Scenario

The budgeter occasionally forgets to pay a bill on time, resulting in frustrating late fees.

Goal

To create a simple schedule that reminds them of upcoming bill due dates to avoid late payments.

AI Solution

AI generates a bill payment calendar that lists all their recurring bills, amounts, and due dates for the month, which they can add to their personal calendar.

AI Prompt
Create a bill payment schedule for me. I have rent due on the 1st, a car payment on the 15th, and a credit card bill on the 25th.
Step 20
credit cardsrewardsoptimization
To maximize their credit card benefits, analyze their credit card rewards and get optimization strategies.
The budgeter has a rewards credit card but has a feeling they are not making the most of its benefits.

Scenario

The budgeter has a rewards credit card but has a feeling they are not making the most of its benefits.

Goal

To get a simple strategy for maximizing the rewards they earn on their everyday spending.

AI Solution

AI analyzes their credit card's rewards structure and their spending patterns and suggests a strategy, such as 'Use your card for all grocery and gas purchases to maximize your 5% cash back.'

AI Prompt
How can I maximize the rewards on my credit card? It gives 3% back on dining and 1% on everything else.