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.
See More: I Asked ChatGPT To Explain How Rich People Avoid Taxes Like I’m 12 — Here’s What It Said
Trending Now: 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses
We asked ChatGPT how to handle money like a billionaire. Let’s explore what it said (and whether it is sound advice).
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.
Learn Next: I Asked ChatGPT When I Could Retire — I Couldn’t Believe the Answer
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.
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.
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.