Chapter 33: Save It, Baby!

The Flipside of Making It

Happy Monday!

Hope you had a great weekend. I know here in the US many of us took an extended long weekend. Did you?

Hope you feel rested and raring to go.

Let's talk about the boring side of Money Monday: Saving.

Who cares about saving money?

"I just want to make as much money as I possibly can so I don't have to worry about saving ever again."

Is this you?

It was me, once.

I told myself that I was going to work really hard in my twenties and build my investment portfolio then cruise through life.

I was on my way. My investments (mostly in crypto) were rocking.

I was making a tons of money, my crypto was soaring, and I was spending like there was no tomorrow.

Thinking I had all that money in crypto.

Then I lost it. It went to 0.

That happens you know.

I had to give up my apartment and move back in with my parents.

I had almost nothing left.

Slowly, I started getting back on my feet. It took a while but man did that ever sober me up on the power of saving.

I totally get it.

We all want the quick buck.

But did I ever tell you about the power of compound interest.

(SNORE)

OK, OK, it won't be that boring. But saving is really important.

It's true, that you'll never get rich drinking coffee at home instead of boba at your fav shop.

but once you have money and then its gone, that is a crappy feeling.

AI can help you keep what you make.

Want to hear a scary thought: 28% of Americans have savings below $1,000. That's 32% for us (Gen Z), followed by Millennials at 31%, Gen X at 27% and Baby Boomers at 20%.

That's pretty f-ing low.

We need to change that.

And AI can help.

With the right AI tools, you can automate your savings, optimize your spending, and make smarter financial decisions.

HOW?

1. Budgeting and Expense Tracking

• AI-Powered Budgeting Apps: Tools like YNAB (You Need A Budget) use AI to analyze your spending habits, categorize expenses, and create personalized budgets. These apps provide real-time updates and insights, helping you stay on track with your financial goals.
• Spending Analysis: Apps like PocketGuard offer AI-driven insights into your spending patterns, highlighting areas where you can cut back and save more.

2. Automating Savings

• Automated Savings Apps: AI apps like Qapital automatically transfer small amounts of money from your checking account to your savings account based on your spending habits and cash flow. These micro-savings add up over time without you even noticing.
• Round-Up Savings: Apps like Acorns round up your purchases to the nearest dollar and invest the spare change. This automated investment strategy helps you save and grow your money with minimal effort.

3. Reducing Bills and Subscriptions

• Bill Negotiation Services: AI-driven services like Trim negotiate with your service providers to lower your bills and cancel unwanted subscriptions. These tools analyze your bills, identify potential savings, and handle the negotiation process for you.
• Subscription Management: Bobby help you track and manage your subscriptions, ensuring you only pay for what you actually use. Personally I suck at tracking this - i have way too many subscriptions.

4. Finding Discounts and Deals

• Price Comparison Tools: AI tools like Honey automatically find and apply the best coupon codes and discounts when you shop online. They also compare prices across different retailers to ensure you get the best deal.
• Cashback Apps: Apps like Dosh use AI to track your purchases and offer cashback on eligible transactions. These apps help you save money on everyday purchases and earn rewards effortlessly.

Of course, you could also have a quick chat with your fav chatbot and see what it has to say...

YOU: Hey, I’ve heard AI can help save money, but I’m skeptical. How can AI possibly help me with that?

AI: I understand your skepticism. AI can seem complicated, but it’s really about using smart technology to make better financial decisions. Let’s break down some practical tactics AI can assist you with.

YOU: Alright, I’m listening. What kind of tactics are we talking about?

AU: First, let’s talk about budgeting. One of the key ways to save money is by creating and sticking to a budget. AI can analyze your spending patterns and help you identify where you can cut back. It can provide insights into your spending habits, showing you where you might be overspending without realizing it.

YOU: That sounds like something I could do on my own. Why would I need AI for that?

AI: You’re right, you could do it on your own, but it can be time-consuming and prone to human error. AI can do it faster and more accurately by continuously monitoring your transactions and providing real-time updates and suggestions. For example, it can alert you when you’re close to overspending in a particular category, helping you stay within your budget.

YOU: Okay, that’s interesting. What else can AI help with?

AI: Another tactic is automating your savings. AI can help you set up a system where small amounts of money are regularly transferred to your savings account based on your spending habits and income patterns. It’s a great way to save without even thinking about it. The idea is to save in small, manageable increments that add up over time.

YOU: I see how that could be useful. But what about bigger expenses, like bills?

AI: AI can help there too. It can analyze your bills and identify areas where you might be overpaying. For instance, it can compare your utility rates to other available options and suggest cheaper alternatives. It can also remind you of upcoming bill payments to avoid late fees and suggest ways to reduce your overall spending on recurring expenses.

YOU: That sounds pretty good. But I’m still not sure how AI could help with finding discounts or deals. Isn’t that just about looking for sales?

AI: AI can do more than just look for sales. It can track your shopping habits and recommend the best times to buy certain items based on historical price data. It can also automatically search for and apply discounts and coupons when you’re shopping online, ensuring you get the best possible price without having to hunt for deals yourself.

YOU: I hadn’t thought about that. What about managing subscriptions? I have so many that I lose track.

AI: AI can help manage your subscriptions by monitoring your transactions and identifying recurring charges. It can alert you to subscriptions you might have forgotten about or don’t use often. This way, you can decide whether to keep, cancel, or renegotiate them, helping you save money each month.

YOU: These tactics sound useful, but I’m worried about the time it takes to set everything up.

AI: That’s a valid concern. The initial setup might take some time, but once it’s done, the system runs automatically with minimal input from you. Think of it as a small investment of time upfront for long-term savings and financial health.

YOU: Alright, you’ve convinced me to give it a try. What’s the first step?

AI: Start by reviewing your current financial habits and identifying areas where you want to improve. Set clear savings goals, whether it’s building an emergency fund, saving for a vacation, or reducing debt. From there, you can implement the AI-driven tactics we discussed to monitor your spending, automate your savings, manage your bills and subscriptions, and find the best deals.

YOU: Sounds good. What exactly should I do next?

AI: Begin by setting up a budgeting plan. Track your expenses for a month to get a clear picture of your spending habits. You can use an AI tool to help categorize and analyze your spending automatically. Once you have this data, create a realistic budget that allocates funds to essential categories like housing, food, and transportation, and also includes a portion for savings.

YOU: How do I make sure I stick to the budget?

AI: Use AI to get real-time notifications if you’re nearing your budget limits in any category. This way, you can make adjustments before you overspend. Next, set up automated savings. Decide how much you want to save each month and use an AI tool to automatically transfer that amount to your savings account. You can start small and increase the amount as you get more comfortable.

And so on and so forth.

Sometimes these chatbots don't know when to shut up.

At least there is a stop button.

THOUGHTS?

This is just the tip of the iceberg. In future chapters, we'll dig into each of the above and help you to set up savings plans etc., so that you are not part of that 25% or so that doesn't have more than $1k in savings.

Plus, we'll get back to the making money side (I know you want to)

Hey, if you've done anything with saving money and AI that you think we could cover in upcoming chapters, please let me know, my email address is ben@10xyou.us​

See you next week!

Best,

Ben Caldwell, Editor, Money Mondays, 10xYOU​