30 ChatGPT Prompts for Financial Planning (Investment Intelligence Initiation)

ChatGPT is transforming the way financial planning is done.

From devising financial strategies to creating budget plans, examining financial data, and even smoothing out team communication—its potential is truly groundbreaking.

But with so many potential uses, it can feel overwhelming to begin.

That's why I made this guide.

In this guide, based on real-world financial planning situations and numerous hours spent testing ChatGPT, I'll share proven ChatGPT prompts for financial planning.

Let's dive in.

ChatGPT Prompts for Financial Planning

Understand your current financial situation

Understanding one's financial situation is the cornerstone of effective financial planning.

By feeding ChatGPT with your financial data such as income, expenses, assets, and liabilities, it can help in analyzing and providing a comprehensive view of your financial health.

For instance, you can ask ChatGPT to calculate the ratio of your savings to expenses, or how long your current savings would last if you lost your income source.

ChatGPT Prompt:

As a financial advisor, help me understand my current financial situation.

Here is my financial data:

Monthly income: $5000

Monthly expenses: $3000

Total savings: $20000

Total debt: $10000

Set financial goals

Understanding and setting financial goals is a critical step in effective financial planning.

ChatGPT can help by guiding you through the process, including helping you identify short, medium, and long term financial objectives based on your income, expenses, and future plans.

For example, you might ask ChatGPT to suggest goals based on your current financial situation.

ChatGPT Prompt:

Act as an experienced financial advisor to help me set financial goals.

I'm 30 years old with a monthly income of $5000 and monthly expenses around $3000.

I want to buy a house and plan for my retirement.

What should be my short, medium and long term financial goals?

Identify your income and expenses

In the realm of financial planning, understanding your income and expenses is paramount.

ChatGPT can be of great assistance in this process.

By simply feeding your income details and a list of your expenses to ChatGPT, it can help to categorize and analyze them, providing a clearer picture of where your money is coming from and where it's going.

ChatGPT Prompt:

Act as a financial planner and help me understand my income and expenses.

My monthly income is $5000, and my expenses include rent ($1200), utilities ($200), groceries ($400), car payment ($300), insurance ($250), entertainment ($300), and savings ($500).

Analyze and categorize my income and expenses.

Create a personal budget plan

ChatGPT can help you create a budget plan based on your income, expenses, savings, and financial goals.

Just provide your financial details such as your monthly income, fixed expenses, variable expenses, and financial goals.

ChatGPT will then generate a monthly budget plan and suggest ways to cut costs and save more.

ChatGPT Prompt:

As a financial advisor, create a personal budget plan for me.

My monthly income is $5000.

I spend $2000 on fixed expenses, $1500 on variable expenses, and I aim to save $1500 per month.

Create a savings plan

Designing a savings plan can be challenging, but with ChatGPT, you can make it easier.

Provide your income details, expenses, financial goals, and the timeline to reach them to ChatGPT.

It can then create a personalized savings plan for you, taking into account various factors like inflation and emergency funds.

ChatGPT Prompt:

As a financial advisor, create a savings plan.

My monthly income is $4000, my monthly expenses are $2000, and I aim to save $20000 in the next 2 years for a down payment on a house.

Make sure to account for inflation and an emergency fund.

Evaluate your debt situation

Understanding your debt situation is critical for effective financial planning.

ChatGPT can help you evaluate this by examining your debt-to-income ratio, interest rates, and repayment terms.

You need to provide your total monthly income, a list of all your debts, monthly payments, and interest rates, and ChatGPT can calculate and analyze your debt situation.

ChatGPT Prompt:

As a financial advisor, help me evaluate my current debt situation.

My monthly income is $5000.

Here is a list of my debts:

- Student loan: $20,000, monthly payment: $400, interest rate: 5%

- Credit card: $5000, minimum payment: $200, interest rate: 18%

- Car loan: $10,000, monthly payment: $200, interest rate: 3%

Develop a debt repayment plan

ChatGPT can help you create a tailored debt repayment plan based on your income, expenses, and the amount of debt you owe.

By providing ChatGPT with your financial details, it can suggest a suitable plan for managing and repaying your debts efficiently.

For example, you can ask ChatGPT to help you decide which debt to pay off first based on interest rates.

ChatGPT Prompt:

Act as a financial advisor to help me develop a debt repayment plan.

I earn $5000 per month, spend $2000 on expenses, and I owe $10000 in credit card debt with an interest rate of 15% and $20000 in student loans with an interest rate of 5%.

What is the best strategy for me to pay off my debts?

Understand different investment options

Understanding different investment options is crucial for effective financial planning.

ChatGPT can give you a rundown of various investment vehicles like stocks, bonds, mutual funds, ETFs, real estate, and more.

With ChatGPT, you can learn about the potential risks and returns of each option, helping you make informed decisions based on your financial goals.

ChatGPT Prompt:

Please explain the different investment options available for individuals looking to build a diversified portfolio.

Highlight the potential risks and returns associated with each option.

Develop an investment strategy

Building an investment strategy requires careful financial planning and knowledge about different investment avenues.

ChatGPT can help you by providing a diversified investment strategy based on your risk tolerance, financial goals, and time horizon.

You just need to provide some key inputs, like your age, income, financial goals, risk appetite etc., and it can suggest the best possible approach.

ChatGPT Prompt:

Act as a financial advisor and create a diversified investment strategy.

The client is 30 years old, has a stable income of $5000 per month, and wants to save for retirement and a down payment on a house.

They have a moderate risk tolerance.

Please suggest a suitable investment strategy.

Understand your risk tolerance

Understanding your risk tolerance is crucial in financial planning.

ChatGPT can help evaluate your risk-taking capacity based on different financial scenarios and situations.

ChatGPT can help you understand your risk appetite better by asking probing questions about your financial goals, income stability, and comfort with market volatility.

For instance, you can ask ChatGPT to simulate different investment scenarios to understand how you react to gains and losses.

ChatGPT Prompt:

Act as a financial advisor to help me understand my risk tolerance.

Ask me questions about my financial situation, goals, and my comfort level with market fluctuations.

Based on the answers, estimate my risk tolerance level.

Plan for your retirement savings

With financial matters, taking the right decisions can be daunting due to the wide range of options available.

ChatGPT can help you plan your retirement savings by recommending various strategies based on your income, lifestyle, age, and retirement goals.

Just provide your financial details and retirement goals to ChatGPT, and it will suggest a suitable plan for your retirement savings.

ChatGPT Prompt:

Act as a financial advisor to help me plan my retirement savings.

I'm 40 years old, earn $80,000 a year, and would like to retire at 65.

I have $50,000 in savings and want to maintain my current lifestyle after retirement.

Analyze your tax situation

To keep your financial plans on track, it's important to understand your tax situation.

ChatGPT can help you analyze your tax liabilities and deductions based on the information provided.

This could include income, investments, expenses, or tax credits.

It can also help explore potential strategies to reduce tax liability.

ChatGPT Prompt:

Act as a financial planning advisor and analyze my tax situation.

My annual income is $90,000, I have invested $20,000 in stocks, and I have an annual mortgage interest of $10,000.

I also have $2,500 in educational expenses.

Please provide your analysis.

Develop a tax-saving strategy

ChatGPT can help you develop a tax-saving strategy by taking into account your financial situation and goals.

Provide it with details like your income sources, expenses, investments, and tax brackets, and it can suggest ways to minimize your tax liability.

It can consider strategies like tax deductions, tax credits, tax exemptions, and more.

ChatGPT Prompt:

Act as a financial advisor to develop a tax-saving strategy.

I'm in the 30% tax bracket with a mix of income from salary, rental income, and dividends.

I also make donations and have some expenses related to work from home.

Show me how I can minimize my tax liability.

Understand the role of insurance in financial planning

Insurance plays a significant role in financial planning as it provides a safety net against unexpected losses.

ChatGPT can explain the importance of different types of insurance such as life, health, and property insurance, and how they contribute to financial stability.

It can also advise on the ideal amount of coverage required based on your financial goals and current situation.

ChatGPT Prompt:

As a financial advisor, explain the importance of insurance in financial planning.

Discuss different types of insurance and how they contribute to an individual's financial stability.

Also, provide guidance on determining the ideal coverage based on one's financial goals and current situation.

Choose the right insurance policies

Purchasing the right insurance policy is a crucial part of financial planning.

Let ChatGPT be your advisor and recommend policies based on your specific needs and future goals.

It can analyze the various factors like age, income, family size, health condition, and suggest the most suitable insurance policies for you.

ChatGPT Prompt:

As a financial planning expert, analyze my situation and advise me on the right insurance policies to choose.

I am a 30 year old, earning $60,000 annually, with a spouse and one child.

I am in good health and I want to ensure a secure future for my family.

Plan for major life events (college, marriage, home ownership)

Charting a financial path for significant life milestones can be daunting, but ChatGPT can help you plan effectively.

By providing information about your current financial status, future goals, and risk appetite, ChatGPT can suggest strategies tailored to your needs.

For example, it can help you estimate how much you should save for college, marriage, or buying a house.

ChatGPT Prompt:

As a seasoned financial advisor, help me create a financial plan to cover three major life events: college for my child, my upcoming marriage, and the purchase of a new home.

My current annual income is $80,000, and my risk tolerance is moderate.

Provide a breakdown of investment options and saving strategies.

Create an emergency fund plan

In times of unexpected financial crises, having an emergency fund can be a lifesaver.

ChatGPT can help you devise a realistic and practical plan to build up this fund, considering your income, expenses, and savings goals.

It could also provide tips on where to keep the fund and how to make regular contributions to it.

ChatGPT Prompt:

Based on my monthly income of $5000, with monthly expenses totalling $3000, help me create a strategic plan to build an emergency fund.

Include tips on how much to save, where to store the fund and how to regularly contribute to it.

Understand the importance of estate planning

Estate planning is a critical component of financial planning that should not be overlooked.

ChatGPT can help you understand its importance and how it can protect your assets and ensure they are distributed as per your wishes.

With estate planning, you can ensure financial stability for your loved ones, minimize taxes, and avoid potential disputes.

ChatGPT Prompt:

As a financial advisor, please explain the importance of estate planning and how it fits into an individual's overall financial planning strategy.

Create a will and trust

Creating a will and trust is a crucial part of financial planning.

ChatGPT can help you draft an initial plan, which should then be reviewed by a legal professional.

Just provide the basic details such as your assets, beneficiaries, and the name of the trustee you want to appoint.

ChatGPT Prompt:

As a financial planner, draft a basic will and trust.

I have the following assets: two properties, a retirement account, and a stock portfolio.

My beneficiaries are my spouse and two children.

I want my eldest sibling to be the trustee.

Review and adjust your financial plan regularly

In the ever-changing world of finance, it's essential to review and adjust your financial plan regularly.

ChatGPT can serve as an assistant, reminding you to evaluate your current financial status and suggesting adjustments according to your needs.

You can feed it with your current financial details, and it can give an analysis on where to make improvements.

ChatGPT Prompt:

Act as a financial advisor and help me review my current financial plan.

Here are my details:

Understand inflation and its impact on savings

Inflation is an important factor to consider in financial planning as it devalues your money over time.

ChatGPT can help you understand the effects of inflation on your savings, and provide strategies to hedge against it.

To get started, you can ask ChatGPT to calculate the future value of your savings considering the inflation rate.

ChatGPT Prompt:

As a financial planner, explain the concept of inflation and its impact on savings.

Please also suggest ways to protect my savings from inflation.

For context, I have $10,000 in savings and the average inflation rate is 2%.

Identify potential sources of passive income

Passive income can be a key part of a well-rounded financial plan.

ChatGPT can help identify potential passive income sources based on your financial interests and capabilities.

Whether you're curious about dividends from stocks, income from rental properties, or profits from online businesses, ChatGPT can provide suggestions.

ChatGPT Prompt:

As a financial planner, suggest some potential sources of passive income tailored to my interests and capabilities.

I am interested in real estate, stock market, and have some extra time to devote to an online business.

Learn about diversification in investments

ChatGPT can provide insight into diversification in investments, explaining why it's important and how it can be achieved.

It can give examples of various types of investments to diversify into, and explain the benefits and drawbacks of each.

You can ask it to break down complex financial terms and jargons into simpler language for better understanding.

ChatGPT Prompt:

Act as a seasoned financial advisor to explain the concept of diversification in investments.

Discuss the importance of diversification, types of investments for diversification, and the advantages and disadvantages of each.

Ensure to explain in simple language for easy comprehension.

Understand the basics of mutual funds and stocks

Investing in stocks and mutual funds can be a complex process for many.

ChatGPT can simplify this for you by explaining the basics.

ChatGPT can detail the differences between mutual funds and stocks, the risks and rewards associated with each, and the process of how to invest.

It can be your guide and provide you with the foundational knowledge to start your investment journey.

ChatGPT Prompt:

As an experienced financial advisor, explain the basics of investing in stocks and mutual funds.

What are the key differences, risks, rewards, and how does one go about investing in these options?

Understand the concept of compounding interest

ChatGPT can assist you in understanding the concept of compounding interest, a key principle in the world of finance and investment.

By explaining how it works, the benefits, and its implications on savings and loans, ChatGPT can provide you with a solid foundation to make better financial decisions.

For instance, it can explain the concept by illustrating calculations or comparison scenarios.

ChatGPT Prompt:

As an expert in financial planning, explain the concept of compounding interest.

Give me an example illustrating how it works on savings and another example on loans.

Plan for children's education and future

ChatGPT can assist you in creating a comprehensive financial plan for your children's education and future.

Provide the bot with information such as current savings, cost of education, inflation rate, etc., and it can suggest an investment plan.

For instance, it can help forecast the amount you need to save every month to meet your children's education expenses.

ChatGPT Prompt:

Act as a financial advisor to plan for my children's future and education.

I have two children aged 3 and 5, and I have saved $20,000 so far.

I am planning to send them to a private college.

Please suggest an optimal saving and investment plan.

Understand how credit score affects your financial health

Understanding your credit score is crucial when it comes to financial planning.

ChatGPT can explain what a credit score is, how it is calculated, and the role it plays in your financial health.

Knowing the factors that affect your credit score can help you make strategic decisions to maintain or improve it.

ChatGPT Prompt:

Act as a seasoned financial advisor and explain the importance of credit score.

Outline how it is calculated and how it impacts one's financial health.

Offer tips on how to improve or maintain a good credit score.

Steps to improve your credit score

ChatGPT can provide you with actionable strategies to improve your credit score.

You just need to feed it with your current financial situation, and it will suggest you steps that can effectively enhance your credit rating.

For instance, you can ask ChatGPT to suggest ways to reduce credit card debt or how to manage loans efficiently.

ChatGPT Prompt:

As a financial planning expert, provide me with steps to improve my credit score.

Currently, I have two active credit cards, one car loan, and I regularly use a credit line from my bank.

Learn about different types of loans and their uses

ChatGPT can help you understand different types of loans and their uses in financial planning.

It can explain the characteristics, pros and cons of various loans like personal loans, home loans, auto loans, student loans, and more.

It can also provide scenarios where certain loans might be beneficial and how they fit into a comprehensive financial plan.

ChatGPT Prompt:

Explain the different types of loans available and their uses in financial planning.

Provide an overview of each type of loan, its advantages, drawbacks and suitable scenarios for its usage.

Calculate your net worth and track its growth.

In the realm of financial planning, knowing your net worth is essential.

You can ask ChatGPT to calculate your net worth by providing information about your assets and liabilities.

Once calculated, ChatGPT can also help you track the growth of your net worth over time, by comparing the changes in your assets and liabilities.

ChatGPT Prompt:

As a financial advisor, calculate my net worth based on the following data: I have $50000 in savings, $200000 in real estate, $15000 in car value, $3000 in stocks.

My liabilities include a mortgage of $150000 and credit card debt of $3000.

Also, provide an analysis of how my net worth has changed over the past year based on similar data I provided 12 months ago.

 

Conclusion

Wow! That was a comprehensive journey!

From brainstorming financial strategies to fine-tuning your investment plans, crafting wealth management techniques, and analyzing market trends, ChatGPT is revolutionizing every aspect of financial planning.

It serves as your reliable aide when you're in a bind, your numerical wizard for complex financial calculations, and your brainstorming partner for ingenious money management solutions.

However, always keep in mind:

ChatGPT is an instrument, not a substitute for your financial acumen. Combine its potential with your own knowledge to discover truly significant financial outcomes.

Now it’s over to you.

Select one or two prompts from this guide and apply them in your next financial planning session or team meeting. You might be pleasantly surprised at the dramatic increase in your efficiency and inventiveness.

And if you’re ready to delve deeper into more robust tools that transcend ChatGPT, take a look at Galaxy.ai.

Hosting every AI tool in one location, it's the ultimate productivity partner for today's financial planners.

Happy financial planning! 🚀