Hi all!

(BTW, I do not look like that. I think this is ChatGPT's idea of a joke.)

Did you miss me last week?

I guess being the Money Monday guy has its perks every now and then.

Like last week.

But I didn't just take the time off.

I wanted to dig deeper into something which we talked about a few chapters back when we talked about saving money.

You say BOO.

BORING.

Who the hell wants to talk about saving money?

I just want to talk about making money!

Sure, I get it.

But budgeting and saving is important too.

Especially nowadays.

MY BUDGET STORY

Since we are all about sharing personal stories here too, let me tell you a bit about my "budget" story.

This was when I was living with one of my exes a while back.

I didn't realize it at the time but what she was doing to me amounted to financial abuse.

I didn't even know that it was a thing.

We were living together for a while. When we moved in together, we both had pretty decent salaries, so we got a nice apartment, and could pretty much spend what we wanted on things. Going out for dinner, nice furniture, clothes, etc. The credit card bills were piling up, but we didn't worry cause there was plenty of money coming in.

Then she lost her job in the 2008 recession. That was a hit but my salary was not bad. I figured that we'd ride it out.

But she never stopped spending. I was going over the credit card bills month after month and they weren't changing.

I'd already had the conversation when she'd lost her job. That we'd have to tighten our belts until she found a new one.

Apparently she'd ignored that and just kept on spending.

I distinctly remember the conversation. She was watching TV in the bedroom and I went in with the credit card bills and showed her the numbers and said that since our income was down, we couldn't spend this kind of money anymore.

She turned and looked at me and said in the nastiest possible way "Are you trying to put me on a BUDGET?"

She pronounced the word budget like it was a four-letter word.

Of course, a raging argument ensued.

And it eventually broke us up - among other things.

Did you know that one of the top sources of divorce is money trouble?

One spouse might be a free spender and the other is a tightwad.

In fact, having the same attitudes about money might be an indicator that your marriage will last.

Hmm. Maybe there is a dating app there which matches people up by their attitude towards money.

I'll have to research that.

We didn't have AI to help us.

But you do.

THE CHALLENGE

Managing money can be a bit of a challenge, especially when you’re trying to juggle all your expenses, stick to a budget, and maybe even save a little for the future.

If you're like most people, it's easy to lose track of where your money is going. That's where AI comes in.

By using AI-powered tools, you can automate your budgeting, get real-time insights into your spending habits, and take control of your financial life with minimal effort.

Let’s see how AI can help you create a budget and track your expenses more efficiently.

STORY

Meet Kevin, a busy young professional who struggled to keep track of his spending. Between bills, subscriptions, and impulse purchases, Kevin often found himself with less money at the end of the month than he expected. Frustrated with traditional budgeting methods, Kevin decided to try an AI-driven budgeting app. The AI quickly categorized his expenses, highlighted where he was overspending, and created a personalized budget plan. Within a few months, Kevin saw significant improvements in his financial management, allowing him to save for his first vacation in years.

HOW

1. Automated Expense Categorization

• Hands-Free Sorting: AI-powered budgeting tools can automatically categorize your expenses by analyzing your transactions. Whether you’re paying rent, buying groceries, or grabbing a coffee, AI will sort it all into categories without any manual input. This was always my biggest pain point - but once you get it done, then its eye-opening to see how much you end up spending on coffee every day.
• Custom Categories: Need more specific categories? AI tools like Mint or YNAB can be personalized to match your unique financial habits, giving you a clearer picture of where your money is going.

2. Real-Time Budget Adjustments

• Dynamic Budgeting: AI can adjust your budget in real-time as your financial situation changes. Did your rent increase or did you get a pay raise? AI can help you reallocate funds instantly and show you where to make cuts if necessary.
• Spending Alerts: AI can track your spending in real time and send you alerts when you're approaching or exceeding your budget in specific categories, giving you time to make adjustments before it's too late.

3. Forecasting and Financial Planning

• Cash Flow Predictions: AI can analyze your income and spending habits to predict your future cash flow. This helps you anticipate upcoming expenses and see how much money you'll have left at the end of the month.
• Goal Setting: With AI, you can set personalized financial goals—whether it's building an emergency fund, saving for a trip, or paying off debt. The AI will track your progress and adjust your budget to help you reach your goals faster.

4. Identifying Spending Trends

• Spending Insights: AI can analyze your spending patterns and provide insights into where you're overspending. For instance, it might point out that you’re spending more on dining out than expected or that a subscription is eating into your budget.
• Comparative Analysis: Some AI tools compare your spending to that of others in similar income brackets, giving you an idea of how your financial habits stack up against others.

5. Personalized Budgeting Advice

• Custom Financial Tips: AI can offer personalized tips on how to save money, reduce unnecessary expenses, or improve your financial health. Whether it’s suggesting cheaper alternatives for recurring expenses or recommending investment strategies, AI can guide you based on your habits.
• Behavioral Nudges: AI can send helpful reminders when you’re getting close to your spending limits or even encourage you to save when you have extra money at the end of the month.

6. Automating Savings

• Automated Transfers: AI-driven tools like Qapital and Acorns can automatically move small amounts of money from your checking account into a savings account based on your spending habits. You won’t even notice the transfers, but over time, those savings will add up.
• Round-Up Features: Some AI-powered apps round up your purchases to the nearest dollar and deposit the difference into a savings account. This micro-saving feature helps you save money with every purchase without even thinking about it.

Let's have a chat with our favorite chatbot to see what it says:

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YOU: Hey, I know I should be budgeting my money, but honestly, it just sounds boring. I mean, who really has time to track every single penny?

AI: I get it—budgeting doesn’t exactly sound like the most exciting thing in the world. But here’s the thing: budgeting isn’t about restricting yourself. It’s about giving yourself more control over your money so you don’t have to stress about it. With AI, it’s easier than ever because you don’t need to manually track anything. The AI does all the heavy lifting for you!

YOU: I don’t know, it still sounds like a hassle. Can’t I just spend and figure it out later?

AI: You could, but that’s usually how people end up overspending, right? Imagine this: it’s the middle of the month, and you realize you’re out of cash because you didn’t keep an eye on where it was going. Suddenly, you’re left wondering how to make it to the end of the month without dipping into savings—or worse, putting things on credit. Not fun, right?

YOU: Yeah, that’s happened before. But I don’t want to feel restricted or have to think about it constantly.

AI: Totally understand. Here’s the good news: with AI, you won’t have to think about it constantly! The AI does the tracking and analyzing for you. Let’s say you love grabbing coffee every morning—AI can show you how much that adds up over time and help you adjust your budget without forcing you to give it up entirely. It’s not about cutting everything out, it’s about balance. Plus, AI can send you real-time alerts when you’re approaching your limit in certain categories, so you can tweak your spending without feeling restricted.

YOU: I mean, I guess it sounds useful, but isn’t budgeting really for people who are struggling? I’m doing okay for the most part.

AI: Budgeting isn’t just for people struggling—it’s for anyone who wants to use their money more effectively. Even if you’re doing okay now, having a budget can help you save for the future, invest more wisely, and avoid those "surprise" expenses that catch everyone off guard. For example, what if your car suddenly needs repairs, or your rent goes up? Budgeting can prepare you for those moments so they don’t knock you off course.

YOU: Yeah, I get that, but how would AI even know what I spend my money on? I can barely keep track of it myself.

AI: That’s exactly where AI comes in handy! AI automatically categorizes your expenses for you. Every time you buy groceries, fill up your car, or pay your rent, the AI sorts those expenses into categories like "food," "transportation," and "bills" without you having to do anything. It gives you an easy-to-read breakdown of your spending, so you don’t have to guess where your money’s going.

YOU: I guess it would be nice not to have to worry about tracking everything manually.

AI: Exactly! And it doesn’t stop at tracking. AI can help you set goals, like saving for a vacation or paying off a debt faster. You tell the AI what you want, and it will adjust your budget to help you meet that goal—without you having to constantly monitor it. Let’s say you want to save $1,000 in the next six months. AI will show you where to cut back, even in small areas, so you can meet that goal without feeling the pinch too much.

YOU: But I don’t even know what I would save for right now. It just seems like too much planning.

AI: No worries! Even if you don’t have a big savings goal in mind right now, AI can still help by making sure you don’t overspend and get caught off guard by unexpected expenses. For example, AI could spot a subscription you forgot about that’s eating into your budget every month. Or maybe it’ll show you how much you’re spending on takeout, so you can cut back without completely giving it up.

YOU: That sounds better than me trying to manually figure all that out. But what if I don’t stick to the budget?

AI: The great thing about AI is that it adjusts as you go. If one month you go over in one category, the AI can reallocate funds from another category to help you stay on track without making you feel like you’ve failed. And if you’re really struggling to stick to a budget, AI can give you little reminders and suggestions to keep you in check—kind of like having a personal financial assistant.

YOU: Okay, I can see how that could lift some of the stress. So, AI really takes care of all the tedious stuff?

AI: Absolutely! You get the benefits of staying on top of your finances, without the boring, tedious parts of manual tracking. The AI will provide you with insights, send you alerts when necessary, and even offer personalized advice on how to save or cut costs. Over time, it’ll help you form better financial habits without overwhelming you. And honestly, who doesn’t want less stress around money?

YOU: Alright, I’m starting to come around. It sounds like it could really help me stay organized without a ton of effort.

AI: Exactly! Give it a try, and I think you’ll be surprised by how much easier it makes managing your money. With AI, you’re not just budgeting—you’re simplifying your entire financial life.

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YAWN

Yes, I know budgeting and tracking expenses can be super boring.

But isn't that why we build machines like AI.

To lift our burdens?

This whole newsbook is all about being a better human with AI.

And using AI to lift your money burdens is part of being a better human.

Don't you think that you'd feel better if you had fewer worries about money?

Don't you think you'd be less stressed?

Don't you think that would be better for you and all the humans around you?

Using AI for budgeting and expense tracking can transform the way you manage your money.

From automating the categorization of expenses to offering real-time insights and adjustments,

AI tools make it easier to stay on top of your finances.

Explore AI-powered financial tools today to take control of your cash flow and build a better financial future.

THOUGHTS?

Do you have questions or need more tips on using AI for budgeting?

Drop me an email ben@10xyou.us​

I’d love to hear about your experiences and any feedback you have.

See you next week!