I Asked ChatGPT To Find My Biggest Money Leak — It Wasn't What I Expected
Barely halfway through January, my New Year's resolution to spend less and save more was already losing inertia, so I figured it was best to identify my single biggest money leak and stop the bleeding where it counted most — but what could it be?
Unenthused by the prospect of tediously combing through statements and adding up the damage, I asked ChatGPT to do it for me.
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'High-Confidence Triage'
Apparently, I consult the AI chatbot so frequently on personal finance matters that it didn't need much input from me, stating, "For people with your profile (active investor, multiple portfolios, tax-aware), the biggest money leak is usually NOT groceries or coffee."
So if those common culprits weren't to blame, then what?
ChatGPT was determined to find out through what it called a "high-confidence triage" of five categories, each with its own series of yes/no questions. It concluded, "Your biggest leak is almost always the first 'YES' you hit."
The Big Five Leaks
The chatbot started by outlining "the five biggest money leaks, ranked," explaining why they're a common problem and how much I stand to lose from each. It also noted, correctly, that every dollar wasted is one that isn't compounding in savings.
Remember, ChatGPT advised that my first "yes" is likely the source of my biggest money leak among these five categories.
Lifestyle Subscriptions and Other 'Silent Monthly Charges'
Potential leak: $300 to $700 monthly or $3,600 to $8,400 annually
Question: "Do you have 10+ subscriptions (streaming, apps, news, software, cloud storage, gyms)?"
My answer: No
Eating Out and Other 'Convenience' Food Spending
Potential leak: $25 per day or $9,125 annually
Question: "Do you feel like you don't spend much here? If so, you probably do."
My answer: No
Insurance Overpayment ... 'The Sneaky One'
Potential leak: $1,500 to $4,000 per year
Question: "Has it been two-plus years since you've shopped for insurance?"
My answer: Yes
Taxes You Didn't Optimize ... 'BIG for You'
Potential leak: Five figures per year
Question: "Do you have assets in the wrong account type? Have you missed credits or depreciation, made timing errors or harvested capital gains you didn't need to realize? Given your investing focus, this is critical."
My answer: No
Underused 'Big Fixed Costs'
Potential leak: Undetermined, but potentially enormous
Question: "Do you have an extra car, unmonetized spare rooms, storage units or second properties used inefficiently?"
My answer: No
'A Very Common Leak'
ChatGPT noted that overpriced insurance or excessive coverage is "a very common leak."
In my case, it turned out to be AI-generated words of wisdom.
I'm a minimalist with subscriptions, I'm prudent with discretionary spending and I'm smart enough to know I'm not smart enough to do my own taxes — but it turns out that my set-it-and-forget-it attitude toward insurance was costing me four figures per year.
Unsatisfied with this revelation, ChatGPT asked me to "paste one month of anonymized transactions" into its search box so it could conduct a more thorough analysis ...
I hope it doesn't find out too much.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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