Have you ever struggled with creating a monthly budget? Does it frustrate you to try to figure it out for hours only to go over-budget every month? Why not try creating one using ChatGPT?
What is ChatGPT?
ChatGPT is an artificial intelligence
How to create a Prompt
Use the following prompt or create your own. Replace specifics with your own. You can create more details or leave it more vague. But if you give more details, you are more likely going to get a better result. Just go to your ChatGPT message and paste the following prompt into a new message.
PROMPT
“Hey ChatGPT, I need help creating a monthly budget for my family. We are a family of [4] living in [Indianapolis], and I want to ensure we allocate our income effectively. Our main expenses include [rent $1450, utilities, groceries, transportation, healthcare, childcare, education, clothing, entertainment, dining out, and miscellaneous expenses]. Could you provide me with a detailed breakdown of how we should allocate our funds to ensure financial stability and meet our goals? Our monthly income is [$5000]. Thank you in advance for your assistance!”
example of output
Sure! I’d be happy to assist you in creating a monthly budget for your family based on the given information. Here’s a breakdown of how you can allocate your funds effectively:
- Rent: $1,450 (29% of your income)
- It’s important to keep your housing costs within a reasonable range. In this case, your rent is approximately 29% of your monthly income, which is a good guideline to follow.
- Utilities: Estimate and allocate accordingly
- Utilities can vary depending on factors such as the size of your home, energy efficiency, and local rates. Estimate your average monthly utility costs (electricity, water, gas, internet, etc.) and allocate a suitable amount from your remaining income.
- Groceries: Allocate around $600 (12% of your income)
- Budget approximately 12% of your income for groceries. This amount can be adjusted based on your family’s dietary needs and preferences.
- Transportation: Allocate around $400 (8% of your income)
- Set aside around 8% of your income for transportation costs, which may include fuel, car maintenance, public transportation, or any other commuting expenses.
- Healthcare: Allocate around $300 (6% of your income)
- Healthcare costs can vary depending on your family’s needs and insurance coverage. Allocate a reasonable amount for health insurance premiums, copayments, medications, and other medical expenses.
- Childcare and Education: Allocate around $800 (16% of your income)
- If you require childcare services, allocate a portion of your income accordingly. Additionally, set aside funds for educational expenses such as school supplies, books, and extracurricular activities.
- Clothing: Allocate around $200 (4% of your income)
- Budget approximately 4% of your income for clothing expenses. This amount can be adjusted based on your family’s needs and preferences.
- Entertainment: Allocate around $200 (4% of your income)
- Set aside a reasonable amount for entertainment activities, such as movies, outings, hobbies, and recreational expenses.
- Dining Out: Allocate around $200 (4% of your income)
- Budget around 4% of your income for dining out occasionally. This amount can be adjusted based on your family’s dining preferences.
- Miscellaneous Expenses: Allocate around $200 (4% of your income)
- Set aside a portion of your income for unexpected expenses or miscellaneous items not covered by other categories.
Remember to review and adjust these allocations periodically to ensure they align with your family’s evolving needs and financial goals. Additionally, it’s essential to prioritize saving a portion of your income for an emergency fund and long-term financial security.
Please note that these percentages are approximate guidelines, and you can adjust the amounts based on your specific circumstances and priorities.
Let’s Be More Specific
As you can see, if I had put more information, ChatGPT would have given me more number information. Let’s try it:
“Hey ChatGPT, I need help creating a monthly budget for my family. We are a family of [two adults, a 16-year-old and a 5-year-old] living in [Indianapolis], and I want to ensure we allocate our income effectively. Our main expenses include [rent $1450, utilities, groceries, transportation, healthcare, childcare, education, clothing, entertainment, dining out, miscellaneous expenses, and $200 in savings]. Could you provide me with a detailed breakdown of how we should allocate our funds to ensure financial stability and meet our goals? Our monthly income is [$5000]. And put it into a table format as well please. Thank you in advance for your assistance!”
OUTPUT
Certainly! Here’s a breakdown of how you can allocate your funds effectively for a family of two adults, a 16-year-old, and a 5-year-old living in Indianapolis. The table format provides a clear overview of your monthly budget:
Please fill in the table with the respective amounts or percentages for each expense category. Here are some suggestions to help you allocate your funds:
- Rent: $1,450 (29% of your income)
- This represents your monthly rent expense, which should ideally be around 30% or less of your income.
- Utilities: Allocate a suitable amount based on your average monthly utility costs, such as electricity, water, gas, internet, etc.
- Groceries: Allocate a reasonable amount to cover your family’s monthly food expenses.
- Transportation: Allocate funds for fuel costs, car maintenance, public transportation, or any other commuting expenses.
- Healthcare: Set aside an amount to cover health insurance premiums, copayments, medications, and other medical expenses.
- Childcare: Allocate funds for childcare expenses if applicable, considering the age of your children.
- Education: Allocate funds for educational expenses such as school supplies, books, extracurricular activities, and tutoring if needed.
- Clothing: Allocate funds for clothing purchases and replacements for the whole family.
- Entertainment: Set aside an amount for family outings, hobbies, and recreational activities.
- Dining Out: Allocate funds for occasional meals or dining experiences outside the home.
- Miscellaneous Expenses: Allocate funds for unexpected expenses or miscellaneous items not covered by other categories.
- Savings: Allocate $200 (4% of your income) towards savings to build an emergency fund and work towards your financial goals.
Once you fill in the amounts, you can calculate the remaining income by subtracting the total of allocated amounts from your monthly income. This will help you ensure that you are allocating all of your income and maintaining financial stability.
Remember, these percentages and amounts are suggestions, and you can adjust them based on your family’s specific needs and priorities.
So if you know around how much you spend on each item, list that in the prompt.
Vague Prompt
Let’s try a vague prompt to get an idea of how much we should be spending:
“Create a monthly budget for a family of 4 in Indianapolis that includes apartment rent, food, etc. all normal expenses in a table.”
Example of Output
In this example, the monthly expenses are as follows:
Sure! Here’s an example of a monthly budget for a family of four in Indianapolis. Keep in mind that the amounts provided are estimates, and actual expenses may vary depending on your specific circumstances and lifestyle choices.
- Rent: $1,200 (This is an estimate for a modest two-bedroom apartment in Indianapolis.)
- Utilities: $250 (Including electricity, water, gas, internet, and other necessary services.)
- Groceries: $600 (Varies depending on dietary preferences and family size.)
- Transportation: $400 (Includes fuel costs, car maintenance, and public transportation if applicable.)
- Health Insurance: $500 (This amount may vary based on the coverage plan and family members’ needs.)
- Childcare: $800 (If applicable, this estimate covers daycare or after-school programs for children.)
- Education: $200 (Includes expenses related to school supplies, books, and extracurricular activities.)
- Clothing: $200 (An estimate for clothing purchases for the family.)
- Entertainment: $300 (Covers activities like movies, outings, and hobbies.)
- Dining Out: $200 (An estimate for occasional meals outside the home.)
- Miscellaneous: $200 (Covers unexpected expenses or miscellaneous items not included in other categories.)
- Savings: $500 (Allocating a portion of income towards savings is crucial for long-term financial stability.)
Remember, this is just a sample budget, and you can adjust the amounts based on your family’s needs and priorities. It’s always a good idea to track your actual expenses and adjust your budget accordingly to ensure you stay within your means.
Final THoughts
As you can see there are many ways to use artificial intelligence to create a budget.
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