Chatgpt, the most popular bot of artificial intelligence (AI), sometimes criticizes for false calculations or general information. But when you need to describe the worst things you can do with your money, s is locally.
I asked the Chatgpt of the same question to see what advice he can give to someone to provide this common search request, and the answers she provided surprised me. They read just as recommendations that a professional financial advisor can provide for clients who start their financial life. In other words, this information, although perhaps the main cost of advanced investors, is a type of knowledge that should be part of all American financial literacy course.
Here’s what the Chatgpt had to say about the worst things you can do with your money.
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Chatgpt correctly emphasizes that if you do not earn investment returns for your money, its purchase power may decrease dramatically. As Ai Bot says, “In 10 years, 3% inflation can reduce your money value by almost 30%”.
To avoid this, you will want to invest large amounts, not in low or interest -free check accounts or, worse, under your mattress.
One of the easiest ways to lose money in all markets is to move to “hot” areas simply because their prices are rising. If you don’t know what you are doing, everything, but it is inevitable that you will be one of those you will leave your handbag when the party ends.
As the Chatgpt says, you should “avoid jumping into cryptocurrency, meme supplies, NFT or Ai game just because they are fashionable…. Hype cycles create bubbles. You often buy high and panic selling small, complex losses. ”
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This is a financial killer that should be general knowledge; Unfortunately, Americans are still carrying credit card residue to $ 1.18 trillion, according to New York Federal Reserve Bank. The worst part is not even the debt of the debt-it is “20%of the pluses paid when minimal payments are needed,” says Chatgpt. “Composite interest operates against you. The $ 5,000 balance over time can cost thousands more – for nothing gained.”
Homes in the US are almost a record impossibility level, which makes some buyers pay more than they can afford. Chatgpt emphasizes that this is a bad strategy because “it captures cash, increases the risk of downturn and can leave you” home poor “and cannot save or invest.
How correctly emphasizes the robot if you bind all your money at home that you really can’t afford, risk indebtedness if you no longer have cash flow to pay your bills. You also direct money from long -term savings and investment plans.
Although he can feel like gambling as a result of everyday promotion market ups and downs, there is really no – unless you treat the day. Although long -term investors tend to give up very well, daytime traders, especially those with no experience, choose failures.
Chatgpt notes that “the odds are highly dependent on retail traders. Most lose money. Investing is not gambling, but it becomes gambling when you don’t have a plan.”
Go to the finance advisor’s office and the first thing they can recommend to you is to build an emergency fund, ideally enough to cover three to six months. If you live in salary to pay your salary and don’t have a safety cushion, the Chatgpt says “unexpected costs force you into debt. Even a few hundred dollars can prevent financial spirals.”
Retirement plans provide some of the best advantages when it comes to saving long -term. Many 401 (K) plans are offered a certain type of company match where your employer will throw “free money” into your account if you also contribute. These plans, along with the IRA, allow you to raise money on the basis of a tax memory until you remove it, and to get the tax benefits yourself. Without going to a retirement plan, “You lose decades of adding and may have to work longer – or retirement than expected,” says the Chatgpt.
Many investors are impatient and want a huge return as soon as possible, which makes them sensitive to investment scammers, such as investing in untested transactions, “guaranteed” returns or money sent to strangers, the Chatgpt reports.
“If someone promises easy money,” says a bot, “usually con.” Once lost, he rarely recovers. ”
To get forward in the financial world, you will want to invest as much as possible in property valuation rather than depreciated assets, such as cars. But the truth is that many Americans need a car, and most cannot afford to pay cash for one.
Chatgpt, according to Chatgpt, is to avoid “buying a new car with a long -term loan and low contribution. Cars quickly lose value. You can be owed more than worth (negative ownership) until you have yet to pay.”
One of the biggest financial mistakes, especially when the market makes great steps, is to make great movements of emotions.
“Sale in panic, buying from fear (FOMO) or making major changes after decomposition, loss of work or market accident, is all mistakes,” Chatgpt reports. Cause? “Emotional solutions often cause regret. Money needs a great head and a long approach.”
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This article initially appeared on the website gobankingrates.com: I asked “Chatgpt” what the worst things you can do with your money – that’s what he said
