While you may not have billions in your bank account, many admire those who have achieved billionaire status. From celebrities to CEOs, billionaires all seem to be able to manage their money in an enviable way.
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We asked ChatGPT how to handle money like a billionaire. Let’s explore what it said (and whether it is sound advice).
Think Like an Investor
First, the AI assistant advised shifting your mindset from that of a consumer to an investor. A billionaire looks at money as a tool for generating more money, according to ChatGPT. It recommended not merely saving one’s income, but instead investing and evaluating purchases on their potential return on investment (ROI).
According to Forbes, slightly over 15% of today’s billionaires made their money in finance and investing, the wealthiest being the Oracle of Omaha himself, Warren Buffett. Understanding how to invest and what to invest in is critical for success, which is why it is strongly recommended that any newbie investors speak with a financial advisor first.
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Finances as a Business
ChatGPT’s second recommendation was to treat your finances like a business. It noted that billionaires frequently either have businesses or manage their assets through holding companies. Treating finances as a business helps to track income, set goals and may have some tax advantages. Again, it is imperative to speak with a financial professional who can help ensure any money moves are in line with personal financial goals and within your risk tolerance.
Automation Is Key
Whether it’s a self-promotion or simply a flex, ChatGPT suggested automating and optimizing finances. It casually noted that you should use technology to help. The idea of automating savings is a sound strategy. As CNBC reported, automatically saving even a little each month can help to accumulate wealth by taking advantage of compounding interest. ChatGPT also recommended optimizing savings and investments by using tax-advantaged accounts and refinancing debt when rates are low.
Minimize Taxes
Speaking of taxes, the chatbot noted that billionaires pay close attention to them. It suggested not only learning about potential tax deductions and credits, but also investing in tax-efficient vehicles such as Roth IRAs, ETFs and municipal bonds. Finally, it advised hiring a CPA or tax strategist, an opinion with which most experts could agree, particularly when it comes to taxes.
Continuing Education
ChatGPT advised reading financial books, following the markets and potentially learning a new skill to enhance financial acumen.
Many experts agree that even basic financial awareness and understanding are essential for money management. Unfortunately, the U.S. is woefully uneducated when it comes to finances. According to the World Economic Forum, around half of the adults surveyed were financially illiterate. Without fundamental financial literacy, many are unable to make informed decisions about their money, regardless of how much they have in their bank account.
Live Frugally
Another tip from ChatGPT is to live below your means. The AI-bot noted that many billionaires, including Warren Buffett, live frugally. It said to focus on buying quality instead of quantity, delay gratification for bigger gains and avoid lifestyle creep. Undoubtedly, each of these things can help ensure more money in the bank and less time trying to keep up with the latest trends.
Protect and Preserve
Finally, ChatGPT advised that to manage money like a billionaire, one should utilize structures to limit liability and protect wealth, such as obtaining proper insurance, creating an estate plan and establishing an LLC or trust. Down the road, the AI assistant then recommended building a team to help protect any wealth accumulated.
Understandably, these tips and tricks may not make you a billionaire overnight, but they should help with good financial decision-making, allowing you to maximize what you have and potentially earn more for the future.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT How To Manage Money Like a Billionaire: Here’s the Advice
