Ever wonder if your job or business might become obsolete, now that everything is available at the touch of a button on Google, YouTube and AI stuff like ChatGPT?
I mean… why pay for things that you can get for free?
So I thought I’d put it to the test. I asked ChatGPT “how to build wealth” and this is what it said. Which makes for interesting reading!
On the whole, I agree with most of it but with a few BIG caveats… as you’d expect.
To be very clear, before we get into it:
- I am a highly qualified FCA-Regulated Financial Adviser and Family Wealth Educator, with decades of experience managing £millions of client’s investments and helping individuals to build both their own wealth and intergenerational wealth. This is MY blog and MY social media accounts. While I have pulled through AI ‘wisdom’ for the purposes of writing this today, all of my content is very much my own.
- NEVER EVER rely solely on what you read online for ANY decision you make in life. Of course, this may sound obvious but there are multiple examples of AI getting things wrong (even more than people do) and you MUST do your due diligence first!
So all that said…
What DID ChatGPT have to say about building wealth? Can you rely on anything AI might suggest?
It opens with:
“Building wealth isn’t about luck or even earning loads of money – it’s about making smart, consistent choices over time.”
You’ll KNOW that this is something that I’ve said time and time again… so far, so ok. It then it goes on to offer some next steps:
“Here’s a simple breakdown of how to build wealth in a way that actually lasts and still lets you enjoy life along the way.”
1. Get clear on what “wealth” means to you
“Wealth isn’t just a big number in your bank account. It’s about having the freedom, security, and lifestyle that matter to you.”
“Ask yourself:
- What do I want life to look like in 10 or 20 years?
- What would make me feel secure right now?
- Once you’re clear on that, the numbers have meaning”.
Again, all of which I agree with in principle – but it’s way too simplified.
You DO need to know what you want and why you want it.
But building real wealth and proper financial security takes consistent action over a period of time. It doesn’t have to be hard – but having a true sense of purpose keeps you motivated and moving towards your goals.
It’s like losing weight. Simply wanting to be a size 12 or whatever isn’t enough to keep you going, when the chocolate hobnobs call your name at 4pm.
So what do you REALLY want? It’s where I start with all my clients, getting that picture fixed SO clearly in your mind. There might be things you’ve never though about, or thought weren’t even possible for you and your family. I have various tools that I share when we start working together, that can help you understand exactly what you’d like to do, be and have both now and in years to come.
ChatGPT then goes on to suggest:
2. Spend intentionally
“Most people think wealth is about cutting back – it’s really about directing your money.
Know where your money is going each month and make sure it lines up with your priorities.”
“A good guide:
- 50% needs (bills, food, home)
- 30% fun (holidays, eating out, treats)
- 20% building wealth (savings, investments, pension)”
And this is where I call BS!
Arbitrary numbers are literally NO help to anyone.
Managing your money using percentages like this can definitely be helpful, but they need to be bespoke – specific and relevant to you and your unique circumstances.
I mean, depending on where you live in the UK, 50% might not cover your living costs.
What if you have credit cards or loans or overdrafts to repay? Should you put money into investments before paying off your debts?
If your priority is to become mortgage free or to buy a bigger home – or a holiday home or buy-to-let – where does that fit in?
How much do you actually need to be paying into a pension, to have enough to live on when you want to work less or stop working all together? What about starting pensions for your kids?
What investments or savings do you already have in place, if any? How does that affect your spending today and tomorrow?
You get my drift… there’s simply no way AI can be discerning enough to help you figure all this stuff out.
It goes on:
3. Protect your income
“Before you invest, protect the basics.”
“That means:
- Having an emergency fund (3–6 months of expenses)
- Making sure you’ve got the right insurances in place
- Having a Will and lasting power of attorney if you have dependants or assets”
Well, yes. This is true.
But it’s about building this in AS WELL AS doing the other things… not INSTEAD of.
This is exactly the kind of thing that puts people off getting started with building wealth, the idea that you can’t even start investing until you’ve got X, Y and Z in place (which often feel confusing and overwhelming in themselves – so you do nothing).
The sooner you start investing your money – in whatever way is best for YOU – the longer it has to grow. That’s how wealth works.
It’s about starting with whatever you have right now and making that work from today, whatever your current financial position might be.
Up next from AI:
4. Invest regularly
“This is the step most people miss. Saving alone won’t make you wealthy – inflation eats into cash sitting in the bank.”
“Instead:
- Use ISAs and pensions for tax-free growth
- Invest monthly in diversified funds (a mix of shares and bonds)
- Let compound growth do the heavy lifting”
“Even £500 a month invested at 7% over 25 years grows to around £390,000 – and that’s without increasing the amount over time.”
Which I’m sorry, is about as useful as a chocolate teapot (perhaps I should ask ChatGPT to suggest a more original analogy?!).
This kind of simplified, one-size-fits-all advice is completely unhelpful.
It all depends on what you’ve already got in place. Some people do NOT need more money in pensions (you can read my other blog on that here).
ChatGPT is right about having a diversified portfolio of assets in a range of tax wrappers, but it can be REALLY hard to work out how to do this. Which again, is where I can help!
AI’s next suggestion:
5. Review and refine
“Wealth-building isn’t a one-time plan – it’s a process.”
“Once a year, review:
- Are you still on track for your goals?
- Are your investments performing as expected?
- Has life changed (new home, partner, business growth)?”
“A good adviser helps you make these tweaks so your plan keeps working for you.”
Which is true. You do need to know if you’re on track. You do need to make adjustments as and when your plans or circumstances change.
But to do this, you need a STRATEGIC wealth plan that’s a) unique to you and b) adaptable as your income changes or you choose to spend your money on other priorities.
Finally from ChatGPT:
6. Enjoy the journey
“Building wealth shouldn’t feel like punishment. It’s about creating more choice – for today and the future.”
“Take the holidays. Enjoy the nice meal. Just do it within a structure that means your money’s still working behind the scenes.”
And I have to say, this is where AI and I are on the same page.
This is the KEY thing (and something I’ve been saying for many, many years). Living by candlelight in your parents’ spare room or eating economy baked beans just so you can say that you are ‘financially free’ is not the way that I’d want to live MY life and my clients tend to think the same.
It’s about planning for the future, while still loving life along the way.
So… thanks, ChatGPT! What have we learned from all of this?
I think the upshot is that successful people know that information is only ever part of things.
Quality of information is key, as I think we’ve seen today. As is context.
What REALLY matters is discerning the precise steps and insights that are valuable to your unique circumstances and then IMPLEMENTING them.
There are a range of ways that we can work together to do this. To find out more, please click here or send me a WhatsApp here with the word 1-2-1 and we can chat through your options.
That’s my biggest takeaway from this exercise in AI, really – discernment. AI is helpful for many things but discerning, it is not. And that is what we all need, to build real lasting wealth for both us and the next generation!
Until next time,
Claire