Money Management

Only 31% of Americans work with a financial advisor. Here’s what happened when I asked the $20 per month ChatGPT for investing advice. 

A whopping 54% of Americans use ChatGPT for personal finance recommendations, according to The Ascent research. But is ChatGPT more than a wallet wizard? Can it — deep breath — provide valuable, actionable investing advice? Maybe even replace an expensive investment advisor?

ChatGPT is one of the fastest-growing products ever, collecting over 100 million users two short months after launch. Thousands are bound to turn to it for investing advice. But is it useful?

To answer this question, I settled in for a quick chat with my friendly neighborhood chatbot, ChatGPT (the paid version known as GPT-4). Here’s what happened when I asked the $20-per-month bot for investing advice, sticking to questions you’d actually ask the AI.

ChatGPT: Where should I start with investing?

I asked ChatGPT, “Where should I start with investing?” and it responded. In a very thorough manner, it listed a nine-step plan to get started. Here are the first three steps it suggested:

Set clear financial goals.Save an emergency fund.Understand your risk tolerance.

It wrapped up its nine-step plan by urging me to consider seeking out a financial advisor.

ChatGPT’s suggestions were clear and compelling. It urged me to educate myself before actually investing and stay focused on long-term goals, which is how we at The Ascent advise readers to build their retirement savings.

ChatGPT: What are some good investment strategies?

I asked ChatGPT, “What are some good investment strategies?” and it responded with another list. This one listed nine investing strategies. Here are the first three it suggested:

Buy-and-holdValue investingGrowth investing

It wrapped up its nine suggestions with the caveat that I choose one or more strategies based on my individual circumstances. And it suggested I speak with a financial advisor.

Again, I found ChatGPT’s suggestions clear and compelling. It suggested legitimate investing strategies that many financial experts advocate for. For example, The Ascent believes in buying high-conviction stocks and holding them for five years or longer.

ChatGPT is not a financial advisor

So, that was fascinating. ChatGPT actually offered me helpful, actionable investing advice. If I were a new investor, I might’ve learned a lot from ChatGPT’s short, accurate summaries. As it was, the refresher simply helped me recall things I already knew to be true.

But for all its usefulness, the premium version of ChatGPT has two fatal flaws:

Limited memoryZero accountability

Practically speaking, ChatGPT has the memory of a goldfish. Imagine talking to a financial advisor about your ideal investing strategy for 30 minutes, only for him to suddenly forget everything you said in the first 15 minutes. ChatGPT is like that (paid and unpaid).

Legally speaking, ChatGPT is a bandit. If an AI like ChatGPT gives you bad or incorrect advice, you can’t make peace with the bot, talk to its manager, or take it to court. Compare that to a financial advisor, who may be accountable under U.S. law for making terrible suggestions.

TL;DR: ChatGPT is not a financial advisor. Its ability to tailor advice to your circumstances is limited. Nor can it be held accountable for providing you with false information, which users have proven it does in many cases (even ChatGPT’s creators say it hallucinates).

Keep things general and brief

Despite all that, ChatGPT can provide helpful investing advice for cheap. Keep questions general and conversations brief. And just like you would when speaking to an internet stranger, verify advice with a Google search or by speaking to a financial advisor you can trust.

Feel free to use ChatGPT (the paid version) as a supplement to Google and human experts. It’s very good at explaining complicated things, making them easy to understand. Note that the free version is much more limited, and for that reason, I didn’t explore it much.

Don’t want to hire a financial advisor? You’re not alone. Only 31% of Americans work with one, according to Northwestern Mutual. Some stock brokers offer an alternative: robo-advisors. They’re affordable and similar to traditional advisors — worth checking out.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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Want to add $100 to your savings this month? Read on to see how. 

An extra $100 in your savings account may not seem so life-changing. But if you’re low on savings to begin with, it could go a long way.

A recent SecureSave survey found that 67% of Americans don’t have enough money in savings to cover a $400 unplanned expense. So if you’re in a similar situation, an extra $100 is actually a pretty big deal. And here are a few ways you might manage to add $100 to your savings this July.

1. Seek out free entertainment

During the summer, many towns offer a host of free events, from concerts at local parks to fireworks displays. Before you make plans to spend a fair amount of money on summer nights out, check out what’s going on in your town. You might have a great time packing a picnic dinner and checking out a live music performance, which is apt to be a lot cheaper than paying for concert tickets and a meal at a restaurant or food at a concert venue.

In fact, depending on your summertime plans, swapping even a single paid night out for a free one could leave you $100 richer. So while you deserve to treat yourself to entertainment on occasion, it also pays to see if it’s possible to have a great time without having to reach for your wallet.

2. Do a subscription audit

Do you know what you’re spending on subscriptions? If not, you’re in good company.

A recent report by C+R Research found that consumers estimated their monthly spending on subscriptions at $86 on average. When they dug deeper, that number was $219 in reality. This means that consumers, on average, underestimated their monthly spending by $133.

As such, it pays to comb through your credit card statements and see what services you’re signed up for. You may be able to dump a few you don’t use and bank the difference without even feeling like you’re missing out on anything.

3. Shop around for new insurance

Many people pay for auto and homeowners insurance once or twice a year. If you do the same, and one of these policies is up for renewal, take some time to do a little rate shopping. You may find that one insurance company is willing to offer you a more favorable rate, and that could allow you to save $100 on annual auto insurance, homeowners coverage, or both.

Another option you may want to look at, if you’re not doing this already, is bundling your auto and homeowners insurance policies. Some companies will give you a break if you sign up for both types of insurance at the same time.

Saving $1,000 in a month may not be close to feasible these days, what with inflation driving the cost of everything up. But saving $100 this month is a very different story. And while you may not think an extra $100 in the bank will have a huge impact on your life, in an emergency, it could spell the difference between landing in debt or being able to cover an unplanned bill without having to whip out a credit card and carry a balance forward.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Looking for fun activities for you and your kids to do this summer? Cinemark has discounted tickets to select kid-friendly flicks. Learn how you can save. 

Now that school has been out for a little while, you may be searching for additional family-friendly indoor activities that you can do on rainy or very humid days. A trip to the movie theater is an excellent way to entertain your entire crew. Cinemark has a fantastic deal that you don’t want to miss. Through Aug. 10, families can watch kid-friendly films for less than $2 per ticket. Here’s what you need to know about this special summertime promotion.

Introducing Summer Movie Clubhouse

Taking your family to see a movie can be costly, by the time you get everyone a ticket and buy popcorn. But if you take advantage of a discounted movie ticket deal, you can treat your family to a fun time while keeping your spending to a minimum.

Cinemark has a deal called Summer Movie Clubhouse that families won’t want to miss. Through Aug. 10, discounted tickets to select kid-friendly films are available for Wednesday morning screenings at participating Cinemark movie theater locations.

Tickets cost $1.50 per ticket, plus taxes and fees. If you plan to visit the concession stand, you can save $1 on kids’ snack packs and any size popcorn and drink combos during Summer Movie Clubhouse showtimes. No coupon is required to take advantage of either deal.

Some locations will offer additional showtimes throughout the week, so check with your closest Cinemark to verify showtimes. The following movies will be screened in July and August:

Mummies: July 5The Bad Guys: July 12Paws of the Fury: The Legend of Hank: July 19DC League of Super-Pets: July 26Lyle, Lyle, Crocodile: August 2Puss in Boots: The Last Wish: August 9

Many families are looking for affordable fun since daily living costs have increased. If you want to create lasting memories with your kids this summer without draining your checking account, you may want to take advantage of money-saving promotions like this. By seeking out deals, you can have plenty of fun while continuing to honor your personal finance goals.

Look for other movie deals to keep your spending in check

Summer Movie Clubhouse isn’t the only way to save money on movie tickets. Many theaters have a set day of the week when you can buy cheaper tickets. At Cinemark, seeing a film on Discount Tuesdays can allow you to keep more money in your pocket. Another way to save money is attending a matinee screening instead of a nighttime show. Before swiping your credit card, check to see if theaters in your community are running promotions this summer.

Five free and low-cost ideas for summertime fun

If going to the movies isn’t your thing, there are other fun ways to spend your time this summer. Here are a few activities that you can do without disregarding your budget:

Plan a picnic: An afternoon at the park is the perfect summer activity. You can make the day more affordable by packing a picnic lunch with all the essentials you need.Go outdoors: When the weather cooperates, summer is an ideal time to get outside. Consider taking a hike or spending the afternoon at a public pool. Most public pools have affordable day rates, and swimming is an excellent way to stay cool on a hot day.Check out a farmers market: Most communities host farmer’s markets during summer. Strolling around is free, and you can look for affordable finds.Go to the library: Your local library is air conditioned and has plenty of books for everyone in your household. You may consider visiting libraries in your community to check out new reading material and attend kid-friendly events.Cook with your kids: If you’re trying to eat more food at home, why not make an adventure out of it? You can pick kid-friendly recipes to try and get your kids involved.

Don’t feel pressured to overspend as you plan summer outings with your kids. Sometimes the most memorable experiences are the ones that don’t require much planning or money. You can view movie times and find your closest Cinemark location on the Cinemark website or app.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Costco has some great bargains this month. Read on to see what’s available. 

Costco is known for its generally low prices. But the warehouse club giant is also known to offer deeper discounts on select items throughout the year. So here are some deals you may want to jump on in July.

1. $150 off the Samsung 49″ Class Odyssey CRG9 Series DQHD Curved Gaming Monitor

If you’re someone who takes their gaming very seriously, then this Samsung monitor is one you may want to splurge on. It features 5120 x 1440 resolution with QLED technology and a curved, ultra-wide screen that can help you take your gaming to the next level.

Now, it’s worth noting that even with $150 off the usual price, this gaming monitor is going to result in a large credit card tab. Costco’s online price after the discount is $849.99, which includes shipping and handling. This item may also be available at a different (perhaps lower) price at your local warehouse club store, so if you have the money in your savings account to swing it and it’s something you’ve been wanting, it pays to compare prices to snag the best deal.

2. $50 off the Apple 10.2-inch iPad, 9th Generation

If your iPad has seen better days, now could be a good time to replace it. Costco has this iPad on sale for $50 off of its usual price, bringing your total cost down to $399.99. It features a 10.2-inch Retina Display with True Tone and 256 GB of storage. It’s also designed to give you up to 10 hours of battery life.

3. $5.50 off Bounty Advanced Paper Towels, 12-Count

Paper towels may not be as exciting as a new gaming monitor or iPad. But let’s face — we all need ’em. And if you’re someone who goes through paper towels quickly in your household, then you may want to jump at the opportunity to score some Bounty rolls at a discount. These paper towels are two-ply for extra absorbency and come with 101 sheets per roll. That’s a lot of clean-up power.

4. $10 off the Gourmia 7-Quart Digital Air Fryer

If you’ve yet to invest in an air fryer, here’s a low-cost option to try. Costco is offering this Gourmia model for $10 off its usual price of $57.99. It comes with 10 pre-set cooking functions and it has dishwasher-safe parts for easy cleanup. Plus, you’ll get a free recipe book for inspiration.

5. $6 off Starbucks Coffee Single Origin Sumatra Dark Roast K-Cup, 72-count

Making your own coffee at home can be worlds cheaper than buying it at the store. And now’s a good time to load up on a 72-pack of Starbucks Dark Roast K-cups, given that it’s on sale. If you’ve been trying to kick the habit of walking into your local Starbucks for a daily coffee, consider this your consolation prize. And hey, this way, you won’t have to wait in a long line to get your morning caffeine.

These items are only five of many that Costco has discounted this month. If there are specific big-ticket items on your wish list, it pays to browse online or visit your local Costco store to see if any of them are on sale. And it’s always good to see which household staples Costco is offering at a lower price than usual. If you have ample storage space at home, loading up when there’s a deal to be had could result in some nice savings.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Changing your career means more than just doing different work. Find out what one writer learned when she swapped one career for another. 

Change is inevitable. This immutable fact probably doesn’t make coping with it any easier, though. Thankfully, all changes come with lessons, and a career change is no exception. In 2021, I went from working in museums to working in digital content, and between then and now, I’ve had the chance to learn the following truths and apply them to my personal finances.

1. Earning more gives you more opportunities

If you’re working in a career that isn’t well paid, it doesn’t necessarily have to limit your life, but it will definitely make achieving big goals more difficult. You might struggle to pay off debt, fund a retirement account, or put money aside to buy a home. It’s easier to get by if you can share finances with another person, such as a romantic partner, but if you’d prefer to chart your own course and live on your own, a low-paying career likely won’t cut it. If you do change careers and find yourself earning more, it’ll be up to you to make the most of it. I started meeting regularly with a financial planner after my career change, and got guidance on paying off debt and how to make a side hustle work for me. I also set a major financial goal for myself, which is buying a home. Every week, I put money into a high-yield savings account to make this dream a reality, and I could never have afforded to do this if I hadn’t changed careers. It’s worth thinking about what your own dreams are, and consider how the money you earn can help you achieve them.

2. It’s okay to spend money to improve your life

Yes, ideally all of us should be using money to improve our financial standing and build a better future (such as by contributing to a retirement account, as Social Security is likely not going to cover all your bills once you stop working). But I learned that spending in the pursuit of fun and fulfillment in the here and now is also valuable. To that end, take time off work. If you’re a freelancer like I am and you don’t get paid time off, carve out that time for yourself anyway. Spend intentionally on purchases that make you happy and improve your life (and not what you think will impress other people — keeping up with the Joneses is a great way to put yourself in debt). And if travel is something you’re interested in, make a travel budget and find ways to save on trips. Road trip vacations are very fun and often cheaper than flying, especially if you’re traveling with a group. And consider picking up a credit card that offers travel perks — using one to pay for your everyday expenses can lead to free flights, hotel rooms, and more.

3. Investing in yourself is important

Work is a big part of many people’s lives. Data from Zippia found that American adults work an average of 38.7 hours per week, which comes out to more than 2,000 hours per year. If you dislike your work, that’s an awful lot of hours to be miserable. So if your current job or career isn’t satisfying to you, it’s okay to change and invest in yourself and your happiness.

To quote Warren Buffett, “The best investment by far is anything that develops yourself, and it’s not taxed at all.” He’s absolutely right here. There are so many ways to invest in yourself. You could go back to school to learn new skills to parlay into a new career. You can network with others in your field via professional conferences and workshops. And you can access courses in a variety of subjects on sites like LinkedIn. There’s no age limit on self improvement and learning, and it’s always worth the time and effort it takes.

I’ve been through a lot of changes in my life, but few have given me the opportunities and insights that my career change did. If you’re feeling stuck in your work and aren’t quite sure what’s missing, I recommend doing some soul searching and considering whether you need a new job — or even a whole new career. It could give you a new lease on life, as well as improve your earning potential and ability to achieve your goals.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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If you’re eligible to buy a home with a VA mortgage loan, you should definitely consider it. Read on to learn how it could benefit you. 

If you’re trying to buy a home in this market, you have my sympathies (and not just because I hope to be buying soon as well). In the heady days of 2021, buyers enjoyed mortgage rates in the 3% range, and sellers watched their homes get snapped up in just days while buyers fought to make a higher offer than their competitors. But then those rates more than doubled over the course of 2022, and as of June 22, 2023, the average rate for a 30-year fixed mortgage loan sits at 6.67%, according to Freddie Mac.

If you’re a military service member or veteran, it might be even more difficult to buy. Mortgage loans guaranteed by the Department of Veterans Affairs (more commonly referred to as VA loans) have an unwarranted negative reputation among real estate agents and sellers alike. Let’s take a closer look at VA home loans and why they’re worth using if you’re eligible for one.

What can a VA loan offer?

A VA loan is a type of mortgage, but it’s only available to current and former members of the military (with some restrictions) and surviving spouses of those who died in the line of duty. If you’re eligible, a VA loan offers a few advantages over going with, say, a conventional mortgage loan. These include:

No down payment requirement (there is a funding fee for using one, however)No mortgage insuranceEasier to qualify for, as these loans are government-backed and there is less risk to the lenderNo penalty for paying the loan off earlyYou can use a VA loan multiple times

Buying a home in general can be a great way to start to build wealth, regardless of whether you’re a civilian or military member/veteran. Unfortunately, it’s not always smooth sailing to buy with a VA loan.

The stigma against VA loans

None of the above perks are the reason there’s a stigma against VA loans. Rather, the issue has to do with appraisal requirements and a lack of VA-loan-savvy real estate agents. If you’re buying with a VA loan, the home will have to be appraised, just like with any other mortgage. But in the case of a VA loan, it isn’t just the home’s value (as compared to how much you’re borrowing to buy it) that matters. The home will also have to meet more stringent requirements for safety and livability. And some sellers believe this will be a hindrance to selling their home to a buyer using a VA loan.

Another potential issue with VA loans is that many real estate agents are unfamiliar with how they work, and may mistakenly believe they are more difficult to use and fall through more often. The National Association of Realtors (NAR) recommends that VA loan buyers do themselves a favor and find an agent who knows about them. So if you’re hoping to buy with a VA loan, definitely ask any prospective agents you’re considering working with if they’ve worked with buyers like you before.

Get yourself in good shape to buy a home

Whether you’re intending to buy with a VA home loan or not, there are a few moves you can make now to become a stronger home buyer.

Save money

While it’s true that no down payment is strictly required for a VA loan, you will likely have to pay a VA funding fee equal to a percentage of your loan amount. And this amount will vary based on whether you can make a down payment, and how much. So it’s worth putting some amount of money down on a VA loan, if you can afford it. Similarly, a lack of down payment could mean you end up underwater on your loan. Save money to give yourself the option to make a down payment, cover that funding fee and any closing costs, and have money in your savings account in case your home needs a repair right off the bat.

Improve your credit score

The credit score required for a VA loan varies based on the lender you choose, but in buying a home, as in all things financial, a higher credit score can give you an advantage. You might qualify for a lower rate if you have a credit score above 700, for example. To improve your credit, pay down debt and commit to making on-time payments.

Shop around

Not all lenders offer VA loans, but you can explore the best VA lenders out there. Once you’ve narrowed your search to a few prospects, see what kind of rate you can anticipate from each of them. The more options you have, the better — and the more likely you are to save money on your mortgage.

It’s not a great time to be a home buyer, and you might worry that using a VA loan could make it even more difficult. It doesn’t have to, if you make the moves above and find a real estate agent who can be your knowledgeable ally in the process.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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