Rs 25,000 Monthly Salary? We Asked ChatGPT To Make A Budget — It Gave 3-Step Answer
According to ChatGPT, one should go by the 50-30-20 rule to optimise their monthly savings plans.
Financial planning has become quite convenient these days with the advent of tech-driven platforms. Many people are using artificial intelligence (AI) powered tools such as OpenAI’s ChatGPT for smart ways to manage their money.
Generative AI platforms can help them with investment tips, money management, understanding the benefits of different investment tools and even visualise long-term goals.
We also asked ChatGPT to help us with a budget for Rs 25,000 monthly salary. It came up with a simplified three-step plan.
According to ChatGPT, one should go by the 50-30-20 rule to maximise their savings. This means that they could divide their monthly salary into three parts: 50% for needs, 30% for wants and 20% for savings.
Rs 12,500 for Needs
ChatGPT says that one should use “needs” part of their salary to pay for rent, utility bills and necessary expenses like EMIs. In this case, this amounts to Rs 12,500 for such necessary expenses. Planning your expenses with this technique can also help you tame lifestyle inflation. For instance, given the 50% cap on “needs”, you can assess what should be the ideal rent amount for you to avoid any long-term financial stress.
According to ChatGPT, a common rule of thumb is that rent should not exceed 30% of your gross monthly income, which is Rs 7,500 in this case.
Rs 7,500 for Wants
After taking care of this segment, one may keep aside around 30% of their income for expenses such as outings, OTT subscriptions, shopping, or buying gadgets. Try to stick to this limit and review your financial habits once every three months to keep a check on spending habits. This will help you in understanding your expense trends. You can also share your expense report with ChatGPT and seek advice on how you can further optimise your financial health.
Rs 5,000 for Savings
Savings is one of the most important aspects of financial planning. Be it for emergencies or long-term goals, you should try to keep aside at least 20% of your monthly income for this purpose.
According to ChatGPT, one may choose to start a mutual fund SIP worth Rs 2,500. You can increase this contribution in line with a salary appraisal. Additionally, set aside Rs 1,500 for emergency funds and keep the remaining money for any unexpected expenses, the AI bot suggests.
There is no fixed formula for managing your money. It should depend on your financial needs and goals. AI platforms like ChatGPT can help in preparing an initial plan, but it’s advisable to maintain financial discipline with a long-term investment commitment to accumulate wealth.
