Is AI your new best budget buddy?

When most of us think about managing our finances we think spreadsheets, calculators, and at times, a whole lot of guesswork. But today, many people are adding artificial intelligence to their tool kit. I’ve always been an old school budgeter; I began with a paper calendar and quickly progressed to my faithful spreadsheet. It’s become an extension of me, always on my phone, always referred to on pay day, constantly updated and never deleted. It’s the heart of my financial health. But in the interest of learning, I gave the reigns to AI at the beginning of summer and let technology take a spin at building not only my personal budget, but my partner’s and our household budget.

Before I go deeper, it’s important to remember that finances and budgeting are my job. I’ve spent years learning best practices for budgeting and avoiding debt, that not everyone has time to do. Please remember that this is just my experience with AI budgeting and—especially with rapidly changing technology—it won't be the same for everyone.

Experimenting with an AI budget

I set my experiment on strict terms by giving the AI our household income and expenses and requesting it generate a “net zero“ budget, meaning nothing is left behind at the end of the month. Expenses like savings, spending, and eating out are all built into the budget itself. To learn more about building a basic budget check out our blog. Once I had my budget, I reviewed it, and we were off to the races. Here’s what I learned:

• It wasn't 100% accurate. I feel like this should go without saying, but we're still in the early stages of assessing the capabilities of AI and the budget it generated wasn't perfect. I had to make several minor adjustments to ensure the budget balanced with our income, and while every category was there it did require minor tweaks to be completely functional. It’s important to always double check AI’s work and treat it with a healthy dose of skepticism, especially when handling something as important as your finances.

• The customization and accessibility were great. Once the budget was generated, I was able to add specific prompts: “Can you create this budget for a bi-weekly schedule” or “Can you adjust the savings to have $2000 saved by x date”. The applications of this could be far reaching depending on your goals. AI could help you make a debt repayment plan, save for a large vacation, build your emergency fund, or extend to retirement projections. Seeing the different responses allowed me to tailor the budget down to something that fit my personal needs.

• Once the door was open, I didn’t close it. Once I had the budgets generated, I found myself getting into the different budgeting aspects the AI could manage. I had it generate grocery shopping lists based on my budget, project my retirement savings, search for cheaper insurance and even get started on that dreaded holiday shopping list. Unlike “old school” budgeting software that can be limited by spending categories and paywalls, AI offered almost limitless options if you knew what you were looking for.

• Putting it into practice was easy. Once the budget was ready, I put it into action. In the first month it was a challenge to convert from my original spreadsheet, but once I got into the flow of using AI the results were positive. For someone who is new or struggling with their budget, I can see how it would be incredibly helpful to work out the basics and spot potential financial challenges. AI also let me quickly alter my budget when circumstances changed or if aspects weren’t working out. However, it’s still important to know yourself and where you struggle financially. If you’re a big over-spender or love take out, AI can’t stop you from spending that money and, unless you ask it to, won’t take those expenses into your budget. Before you have AI evaluate your spending, make sure to do it yourself so you can set realistic expectations before going in.

• I’ve been converted. I love budgeting, it’s a pursuit that I fully believe in when it comes to financial health and is an integral skill for managing your overall wellness. For me AI was a way to optimize a system I already had in place, but not everyone is in that position. Before turning to AI for financial help, make sure you have a solid understanding of basic budgeting skills and financial milestones you should be preparing for. Once you have some financial literacy and know your own weak spots, then you can integrate AI as an additional tool and resource to make budgeting easier and more dynamic. I know AI has taken a huge amount of work off my plate when it comes to managing and adjusting my household budget.

No matter what budgeting method you choose, AI tools could streamline how we approach it. They can offer personalized insights, automate expense tracking, and can even help forecast future spending. Whether you're trying to save for a vacation or just keep your grocery bill in check, these AI companions can be a great addition to other tools like a budgeting sheet to help you make smarter money moves with less effort and more confidence. But—like any other tool—it’s important to evaluate your AI budget to ensure accuracy and regularly check and adjust it as needed.

Even with the best budget, sometimes financial challenges like debt can get so overwhelming that no tool—including AI—feels like it will help. In these situations, it’s important to turn to a real-life debt professional. Licensed Insolvency Trustees are trained and certified by the Office of the Superintendent of Bankruptcy to help Canadians get out of overwhelming debt and are the only debt professionals that can negotiate directly with creditors on your behalf. We offer both virtual and in-person consultations, and in these meetings, we can review your finances and help determine the best debt solution for your situation. Call today or book online for your free consultation.