Plan Your Finances Using this AI Tool! (Step-by-Step)

Key Takeaways

Every month, your salary hits your account. For a moment, it feels like enough. Then the EMIs go out, the rent, the groceries, a few things you did not plan for, and by the time the month ends, you're left with one quiet question. Am I actually doing the right things with my money? The sad part is that most people never get a real answer to that question. Not because they don't want one, but because a person who can give it to them, someone who sits with your complete financial picture, analyzes it, and tells you exactly where you stand, where your money is leaking, and what it will actually take to reach your goals, that kind of guidance is expensive. And honestly, most people don't even know it exists. So, what ends up happening? Millions of earning, working people keep making financial decisions without a map, doing something, but never really knowing if it's the right thing. Today, I'm changing that, taking you one step closer to financial freedom. I spent the last few weeks building a personal finance analyzer myself using AI. You put in your numbers, your income, your loans, your insurance, your savings, your goals, and it gives you back something most people have never seen, an honest, complete picture of where your finances actually stand. Not generic tips, your numbers, your gaps, and your plan. And you're getting it for free today. By the end of this video, you're going to run your own numbers through it, and for the first time, you'll know exactly where you stand and what it will take you to get you where you want to go. So, if that's the case, what are you waiting for? This is Ajit Welcome to Market Feed. The tool is very easy and straightforward to use. So, here you can see it's asking a lot of questions about your financial life. It's asking about your life picture, your money picture, protection, and goals. So, we'll go through it step by step. For the ease of this video, I've pre-filled a lot of these cells because we can go faster. So, let's go ahead and see what are the inputs here. So, first it's asking your name, your current age, the city you live in, and even the occupation type or your salary type. So, why is it asking all of this? Because when depending on your age and the city that you live in and the kind of money that you that comes or flows into your life, a lot of decisions will be made later. So, here I've given his name is Arjun. He's 28. He's an IT software professional working in Bangalore. He's salaried. Mostly his income is fixed and he works in a stable MNC job, one of the large IT firms in Bangalore. So, let's go ahead and click on continue. So, who all depends on Arjun here? So, is it it's asking if Arjun is married? Yes, Arjun is married. She's also an IT professional earning 1 lakh rupees per month as a salaried employee, but they do not work at the same company. Why is that also being asked here? If they're working at the same employer, if something happens to the employer and they're laid off, both incomes could disappear simultaneously. That means that emergency fund benchmark will increase further. But currently, they're working at different employers. Do they plan to have children? Yes, they're planning to have children. Currently, they don't have any and they're looking to have children in the next 3 years. It's asking if the parents are alive. I've given yes, yes. And here, I've given the necessary inputs. So, father and mother are independent. They own they earn themselves or have their own savings, but they do not have any health insurance. So, if there is any financial responsibility at all, we will be sharing it here with our sibling. So, that's even to that level of granularity, I've given in these inputs here. So, it's all coming down to the fact that if you're going to a real financial advisor, this is how they will try to analyze your life. Not saying that this is proper financial advice, but at least it will give you a snapshot of what or where you stand in your current financial life. So, here it's asking your share of parent support. So, I've given 50%. Any other monthly obligations? So, here Arjun is sending money for his nephew's education, 2,000 rupees per month he's keeping aside for his nephew's tuition. Let's go ahead, enter that, and click on continue. So, it's asking, do does Arjun live in his own home? No, he's renting it. He does not have any plans to buy a home yet. And all the other options are a no here as well. He does not have any major expenses planned. His wedding is done, vehicle purchase, everything is done. You'll get to see why he's not having any major planned expenses very soon because all the expenses that he has accumulated has caused him to be in a massive, massive debt trouble. So, let's go ahead and look into that. So, Arjun here is earning 1 lakh 20,000, his spouse is earning 1 lakh. Expected annual bonus is somewhere around 2 lakhs. And I've given that he's earning freelance income of 3,000. This is only for reference, but if you have any real numbers, go ahead and enter that yourself. So, I'm going to click on continue. So, they're living in Bangalore. So, in order for them to live in at least a small, comfortable flat, it'll cost in reality minimum of a 30,000 rupees here. Food and groceries, 10,000. Utilities and bills that includes uh electricity, their Wi-Fi, both of their mobile connections come up to nearly 3,500 rupees per month. Transport and fuel, Uber, their petrol, everything comes up to at least, at least 5,000 rupees per month. You can go ahead and increase that if you feel this is too low. Entertainment and dining, I've given 8,000. Clothing and personal care, they do spend a lot as you can probably see, and they spend nearly 5,000 rupees per month. They also go for gym membership that is spending nearly 3,000 rupees per month along the two of them. And currently, as of today, they're not paying any life insurance premium, health insurance premium, or any emergency fund top-up. So, you can see even in the growth and SIPs, as of today, they're not doing any fresh SIPs. Why? We'll get to that very, very soon. So, this is a problem that my dear friend Arjun is facing. He's having or he has accumulated a lot of debt along the way. So, you can see he has a personal loan one, he has a personal loan two. He took a huge home loan home renovation loan for his parents, and that is also costing him a lot of money. And all of these are not at the best interest rates. So, you can see here this is a 13% interest rate. That is somewhat okayish, but then when you start going down, when he started taking newer and newer loans, you start seeing why Arjun has gotten into a lot of trouble. So, he's taken this loan for 16%. The home renovation loan, it came in as a surprise. He wanted to get it no matter what, and it costed him 17% interest per year. He has a car loan that is slightly lower, 10% per year. And you can see he has a total outstanding of 21.89 lakh rupees with a monthly EMI of 1.33 lakh. And this is the trouble my dear friend Arjun is in. So, I'm assuming a lot of people are stuck in such a similar loop, where they even if they have a good income, they're not able to pay off a lot of their debts. They're stuck in a debt trap. Now, here, not just with this tool, but along with the service, I'm trying to help out a lot of you. So, if you're a high-earning individual who is also having a lot of loans and want to restructure all of these loans, we are building a custom service. If you're interested, I'll put a tick mark or a check mark at the end of this entire report. If you're interested, once you have filled it, if you give the consent, we'll be contacting you in order to help you out with solving all of your loan problems. So, over the years, Arjun accumulated few portfolio and assets here. You can see he has an equity large cap flexi cap mutual fund of 3 lakh rupees. He's expecting that to give 13% annually. He also has few physical gold items that he has bought in his lifetime, only worth nearly 3 lakh rupees. Realistic return of 8 to 10% is what we can give here. Arjun also has few emergency fund of nearly 2 lakh rupees as cash in his bank account, and that's the only money that he can depend on if anything goes wrong in his life. And he has a good civil score. More than 750+ is what he has in his civil score. Now, it comes to life insurance. Here, what is Arjun's life insurance cover? It is 0 rupees. If anything happens to his wife or to himself, and they're even planning to have children, it can be a huge issue in the future, especially considering all the loans and commitments that he has. But realistically, if you're in Arjun's age bracket, for 800 to 1,000 rupees, you can get a good coverage is what I understand. With the link I've given down below, you can get up to 15% discount by comparing top insurance companies before choosing your plan. For NRIs, term insurance can be purchased from India at 30 to 50% lower cost compared to abroad. So, link will be in the description. Check it out right now. Now that we've moved on to the next section, which is also super important, health insurance. So, you can see that medical inflation in India is 12 to 15% per year, but Arjun here again has zero health insurance. Fortunately, he has a corporate health insurance cover of 5 lakh rupees, but can he bank only on that? Unfortunately, not. So, this calculator, this tool is using only 50% credit, because at any time he can change his job, he can decide to start building his own business. He can get laid off in the current market scenario. So with all of that, you cannot depend only on your corporate health cover today. So if Arjun is to take a health insurance policy today, I'll be suggesting the link in the description once again. For health insurance policies, he'll be getting up to 25% discount. And again, with 500 to 600 rupees, he can get a good health insurance plan for himself. And with 1,000 to 1,200 rupees, he can get a good floater insurance for both him and his spouse. So here you can see even the spouse is having 5 lakh rupees insurance from her employer, but parents are not covered at all. They're not having any insurance, so it's already saying parents are not insured, so be careful of that. They do not have any pre-existing conditions, thankfully. And currently, they do not have any critical illness cover. So here, Arjun is recommended to have a 15 lakh family floater plan with him and his spouse. And effective cover right now is only 2 and 1/2 lakhs. So there is a gap of 10 to 12 lakhs that he's supposed to cover because of his lifestyle and the city that he lives in. The money that he earns, his expectations will be higher. The amount of insurance that he needs will also be higher. If you feel this is unrealistic, I would suggest at least get some insurance. Even that will give you a lot of peace of mind. Now let's get into the last tabs under protection, which is other protection gap. So it's asking, "Does your employer provide disability cover?" Most of the IT companies do not provide that, but let's go ahead, give no here, no here. And it's also asking, "Is your vehicle insured comprehensively?" So yes, Arjun has taken a comprehensive insurance plan for his vehicle. For debt elimination plan, it's asking which specific loans you want to close and when. I do not know that. Let the calculator or let this tool tell me that is what I'm hoping. So I'm going to click on skip this section. Skipping means that gold payoff sequence will be calculated automatically instead. I do not have any preference. Let the tool make the decision for me. So, I'm going to click on continue again here. It's asking, "Do you have any specific protection goals for yourself?" I've given building a 9-month emergency fund is super important for Arjun right now, and getting parents covered under health insurance is also super important. After that, savings and accumulation goals, nothing. I think Arjun here wants to focus on paying off his debt first. That's what we'll be focusing on. He's planning a retirement age of 60 with life expectancy up to 85 and not planning any early retirement. But, he plans to move back to his home city or state after some time. So, it's given in an example here, cost of living change. If it's from Bangalore to Kerala, a significant expense reduction will happen in Arjun's life. So, that is something that Arjun plans to do. It's also asking interestingly, "How did this person accumulate all this debt?" Mostly through consumption, lifestyle, travel, gadgets. That's how this person accumulated a lot of debts. And it's asking, "Has the person changed his behavior?" Till now, till today, he has changed, right? Because he's stuck in a situation which he can't get out of. So, he has stopped making further lifestyle upgrades. So, this is something that all of you should have in mind. If you're even creating a debt clearing off plan, or if you're starting an investment plan, first you should be having the mindset shift. So, if that mindset shift is not there, no matter what plans you create, it will end up not working out at all. And go ahead and click on the generate my plan option. So, the entire report here is ready. Let's go through summary and through verdict. You can go through the entire tab-by-tab summary of your own life after filling this entire tool list. So, let's go ahead check out Arjun's financial health score. It is only at 15 out of 100. Critical attention is needed as a lot of you might have imagined. Positive cash flow, that's a good thing because he's having good income with him and his wife combined. But, he is only having a surplus of 25 K rupees to live on. His savings rate is less than 15%. There is no enough emergency fund. Debt burden is out of control. You can see debt burden is 59% of debt to income ratio. That's what he's having. He's not having a positive net worth. He's not having life insurance, health insurance, or even actively investing. So, all these are super super critical things that Arjun needs to solve ASAP today. So, what is the first thing that he has to solve? He's having a cash flow problem. He's also having a debt problem. So, let's get into the debt solution first. So, now let's come to the debt planner tab. Here in the payoff strategies, I've added a few options. I'll be adding more, but I think the most important for Arjun right now is to fix his cash flow problem. So, what is the cash flow problem that we are trying to solve? Prepay the loans that free the most monthly cash per rupee paid. That means the highest EMI to balance ratio. That is what we'll be focusing on. This is best if your monthly surplus is thin and you need to unlock breathing room to invest or handle emergencies. That is Arjun's problem. The tool has read it really well. He's having good income, but a lot of money is going into debt repayment. So, if you can free up some of those EMIs, he can start living a bit comfortably again. He can start keeping aside some money for his emergency fund, some money for his life and health insurances, and he can start saving up for his future. So, that is what we want Arjun to do. Now, as we saw, he's having a monthly positive cash flow of nearly 25,000 rupees per month after all of his expenses and his lavish lifestyle. So, here we are going to give he's going to spend at least 10,000 rupees per month into paying off additional part of his loans. So, once you give that, you can see cash flow gets you debt free 3 months sooner and saves you 16,500 rupees in total interest. So, what is it going to do? First, you're going to pay off your car loan. Why? That's what I want you to understand here. Using the cash flow method, even though it is the lowest interest rate debt that Arjun has, if he clears off this, it is only 3 lakh rupees which is outstanding. So, if he clears off this, this 3 lakh rupees outstanding will save him nearly 30,000 rupees per month in his EMI or cash flow. That is what we are going to focus on first, and you can see the accelerated timeline. You can see what all we are going to do after that. So, month 8 of the year, 30k per month will be freed because Arjun has accelerated his car loan payments. After that, month 14, year 2, he can close his personal loan 1. Month 17, year 2, he can close his personal loan 2. And month 27, if everything goes well, he can close off even his home renovation loan. So, it is much better than his regular EMI schedule, not just because it saves him interest, but it gives him a lot of peace of mind. He can start having surpluses that he can give back or put back into the loans, close it faster, but also if he needs it, he can use it as his emergency fund also. So, this is a major major thing that I want all of you to focus on. But, there are a few more things. You can see at the bottom here, it's also highlighting asset liquidation scenarios. It's asking Arjun to go take a gold loan, pledge the gold 3 lakh gold that he has at 9 to 10% per year, use it to prepay the highest rate loan. It saves the spread. It saves you interest, and you can repay the gold loan from the freed EMI. It's also saying once Arjun gets his bonus, he can deploy that against the car loan, and he can cut the interest rate and the months tenure that he has to pay. So, it's giving proper strategies on how this person can close off his loan. So, one more effective debt clearing off strategy is to consolidate a lot of your loans. If you're paying high EMIs, high interest rates, if you're having a good income, you might be eligible to get a better loan with a lower EMI at even a lowest lower interest rate. So, if you're interested in us helping you out to solve your debt problems, I'll be having a consent form at the end of this tool in order to call you and to help you out. So, let's move ahead and let's go to the verdict for Arjun here. So, what is the primary good thing right now? Surplus of 25,000 rupees per month he's having a cash flow. Emergency fund is to be solved. Net worth is negative, that is to be solved. Investing is again, it's uh demanding to get started again. That's one thing that we're seeing for Arjun. So, it's also created a proper plan. What's to be done this month? What's to be done over the next 12 months? And what's to be done over the next two to five years? The entire snapshot of your personal financial life. If you want to take action, you have the entire data in front of you today. And the only thing stopping you is yourself. So, what do I want you to do? I want you to go ahead, check out this tool that I've given in the description and in the pin comment. And once you've filled everything here, once you've got the personal life snapshot, if there are things that you should be correcting, go ahead and do that ASAP. If you think that all of these problems cannot be solved with the current tool or with your current knowledge, you should be definitely considering meeting a certified financial advisor. If you want more specific inputs onto any of your problems here, what can you do? I've given a export PDF option here. So, you can click on that. You can save the entire report as a PDF. You can upload it to your cloud, your Gemini, your chat GPT, and you can ask it for further inputs. Where can I solve things? If my current financial situation is like this, what can be an alternate approach to the same problem? So, all these questions you can have a chat with the AI tools, and it will help you figure it out. Before putting this tool out in front of all of you, I gave this to at least 10 of my friends and family, took a lot of feedback, and made a lot of changes. But again, if there are certain problems that I still need to address, maybe there are specific use cases that I should include that will help not just you, but a lot of people on the internet, make sure you let me know in the comments down below. I'll be going ahead and making that change as much as possible. So, hope you got a lot of value from this video. This is Ajit signing off. See you all again in another video. Bye-bye.