{"id":125129,"date":"2025-10-16T05:11:28","date_gmt":"2025-10-16T05:11:28","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/125129\/"},"modified":"2025-10-16T05:11:28","modified_gmt":"2025-10-16T05:11:28","slug":"i-asked-chatgpt-what-the-worst-things-you-can-do-with-your-money-are-heres-what-it-said","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/125129\/","title":{"rendered":"I Asked ChatGPT What the Worst Things You Can Do With Your Money Are \u2014 Here\u2019s What It Said"},"content":{"rendered":"\n

ChatGPT, the popular artificial intelligence (AI) bot, sometimes takes criticism for providing erroneous calculations or generic information. But when it comes to outlining the worst things you can do with your money, the AI is spot-on<\/a>.<\/p>\n

I asked ChatGPT this very question to see what advice it might give someone making this common search query, and the answers it gave surprised me. They read just like the recommendations a professional financial advisor might give clients who are beginning their financial lives. In other words, this information, while perhaps basic for advanced investors, is the type of knowledge that should be part of a financial literacy course for all Americans.<\/p>\n

Here\u2019s what ChatGPT had to say about the worst things you can do with your money<\/a>.<\/p>\n

Check Out: I Asked AI To Make Me as Much Money as Possible: Here\u2019s What Happened, According To Codie Sanchez<\/a><\/strong><\/p>\n

Read Next: Warren Buffett: 10 Things Poor People Waste Money On<\/a><\/strong><\/p>\n

ChatGPT rightly points out that if you\u2019re not earning an investment return on your money, its purchasing power can fall dramatically. As the AI bot says, \u201cOver 10 years, 3% inflation can shrink your money\u2019s value<\/a> by nearly 30%.\u201d<\/p>\n

To avoid this, you\u2019ll want to keep large sums invested, rather than in low- or no-interest checking accounts or, even worse, under your mattress.<\/p>\n

One of the easiest ways to lose money in all markets is to jump into \u201chot\u201d areas just because their prices are going up. If you don\u2019t know what you\u2019re doing, it\u2019s all but inevitable that you\u2019ll be one of the ones left holding the bag when the party ends.<\/p>\n

As ChatGPT puts it, you should \u201cavoid jumping into crypto, meme stocks, NFTs or AI play just because they\u2019re trendy\u2026.Hype cycles create bubbles. You often buy high and panic-sell low, compounding losses.\u201d<\/p>\n

Discover More: I Asked ChatGPT When I Could Retire \u2014 I Couldn\u2019t Believe the Answer<\/a><\/strong><\/p>\n

This is a financial killer that should be common knowledge; unfortunately, Americans still carry credit card balances to the tune of $1.18 trillion, according to the Federal Reserve Bank of New York. The worst part isn\u2019t even the going-into-debt part \u2014 it\u2019s \u201cpaying 20%-plus interest while making minimum payments,\u201d as ChatGPT says. \u201cCompound interest<\/a> works against you. A $5,000 balance can cost you thousands more over time \u2014 for nothing gained.\u201d<\/p>\n

Homes in the U.S. are at near-record levels of unaffordability, and this is pushing some buyers to pay more than they can afford. ChatGPT points out that this is a bad strategy because \u201cit locks up cash, increases risk in downturns and may leave you \u2018house poor<\/a>\u2018 and unable to save or invest.\u201d<\/p>\n

Story Continues <\/p>\n

As the bot rightfully points out, if you tie up all your money in a house you can\u2019t really afford, you risk going into debt if you no longer have the cash flow to pay your bills. You also divert money away from your long-term savings and investment plans.<\/p>\n

Although the daily ups and downs of the stock market can make it feel like gambling, it\u2019s actually not \u2014 unless you treat it that way by day trading<\/a>. While long-term investors tend to fare very well, day traders, especially those without experience, are setting themselves up for failure.<\/p>\n

ChatGPT notes that \u201cthe odds are heavily against retail traders. Most lose money. Investing is not gambling \u2014 but it becomes gambling when you don\u2019t have a plan.\u201d<\/p>\n

Walk into a financial advisor\u2019s office and the first thing they are likely to recommend to you is to build an emergency fund<\/a>, ideally with enough to cover three to six months of expenses. If you live paycheck to paycheck and don\u2019t have a safety cushion, ChatGPT says \u201cunexpected expenses force you into debt. Even a few hundred dollars in savings can prevent financial spirals.\u201d<\/p>\n

Retirement plans offer some of the best advantages when it comes to long-term savings. Most 401(k) plans offer some type of company match, in which your employer will dump \u201cfree money\u201d into your account on your behalf if you also contribute yourself. Those plans, along with IRAs, allow you to grow your money on a tax-deferred basis until you withdraw it, in addition to getting tax benefits from your contributions themselves. Without contributing to a retirement plan, \u201cyou lose decades of compounding and may have to work longer \u2014 or retire poorer than expected,\u201d according to ChatGPT.<\/p>\n

Many investors are impatient and want huge returns as soon as possible, and this makes them susceptible to investment scams, such as investing in unverified deals, \u201cguaranteed\u201d returns or sending money to strangers, according to ChatGPT.<\/p>\n

\u201cIf someone promises easy money,\u201d the AI bot says, \u201cit\u2019s usually a con. Once lost, it\u2019s rarely recovered.\u201d<\/p>\n

To get ahead in the financial world, you\u2019ll want to invest as much as you can in appreciating assets, as opposed to depreciating assets like cars. But the truth is that many Americans need a car, and most can\u2019t afford to pay cash for one.<\/p>\n

The trick, according to ChatGPT, is to avoid \u201cbuying a new car with a long-term loan and little down payment. Cars lose value fast. You might owe more than it\u2019s worth (negative equity) before you\u2019re even halfway done paying.\u201d<\/p>\n

One of the biggest financial mistakes, particularly when the market is making big moves, is to make major moves out of emotion.<\/p>\n

\u201cSelling in a panic, buying out of fear of missing out (FOMO) or making big changes after a breakup, job loss or market crash\u201d are all mistakes, according to ChatGPT. The reason? \u201cEmotional decisions often lead to regret. Money requires a cool head and a long view.\u201d<\/p>\n

More From GOBankingRates<\/strong><\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: I Asked ChatGPT What the Worst Things You Can Do With Your Money Are \u2014 Here\u2019s What It Said<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"ChatGPT, the popular artificial intelligence (AI) bot, sometimes takes criticism for providing erroneous calculations or generic information. But…\n","protected":false},"author":2,"featured_media":125130,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177],"tags":[79,297,18,33068,20148,19,17,234,235,617],"class_list":{"0":"post-125129","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-chatgpt","10":"tag-eire","11":"tag-financial-advisor","12":"tag-financial-literacy","13":"tag-ie","14":"tag-ireland","15":"tag-personal-finance","16":"tag-personalfinance","17":"tag-warren-buffett"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/125129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=125129"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/125129\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/125130"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=125129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=125129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=125129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}