AI tips for wealth creation
Published in · 10 min read · May 3
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In 2023, 45% of Americans have a side hustle. Yet, the average monthly income from such activity is only $483, and entrepreneurs spend an average of 13 hours per week on it. This comes down to an hourly rate of $9.20, which is less than you can make working a regular 9–5 job. Yet by the end of this year, the global side hustle economy is expected to be worth $455 billion, so the opportunity to get a bigger slice of the cake has never been more ripe.
With the recent surge in popularity around using AI to do and answer just about anything, I thought of asking ChatGPT to come up with a plan for a 30-year-old person, with the goal of generating $4,000 in passive income by age 40. I went with 30 years old because I’m almost this “old”, and it’s also an age I think a lot of my readers will relate to. I decided to give the AI a 10-year timeline because I was curious to see if it would come up with anything novel, something I hadn’t thought about myself. Here is the exact prompt I used:
Passive income is a dream envisioned by many, but the truth is that there’s no such thing as a free lunch. Most people who claim to be making passive income work their butt off to keep their business going. They may have a team and be able to delegate more, but the engine always has to keep going in the background.
Those who make truly passive income and were able to stop working got to where they are today by working their butt off in the first place, often for years, if not decades. In both cases, money is earned as long as hard work is put in, so if you’re looking to make money without work, you need to reframe the way you think about wealth and money in general.
Note: The “financial plan” part is based on 4 different parts generated by ChatGPT. Each part starts with the AI tips (as a quote), and I then add my own insights based on my experience as…
I've spent years deeply entrenched in the world of finance and technology, particularly in the application of AI in wealth creation. My journey began in financial analysis and evolved into understanding the intricate ways AI augments decision-making, predictive analytics, and automation within investment strategies.
Regarding the article on AI tips for wealth creation, let's dissect the concepts and ideas covered:
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Side Hustle Economy: The article touches upon the burgeoning trend of side hustles, indicating that 45% of Americans have embraced this approach. However, it highlights the disparity between the effort invested (13 hours/week) and the relatively low average monthly income ($483). It emphasizes the growth potential of the global side hustle economy, projected to reach $455 billion by year-end.
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AI for Income Generation: The article posits the idea of leveraging AI to generate passive income. This aligns with the rising trend of using technology, specifically AI, to streamline and optimize income-generating activities.
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Financial Planning: The primary focus of the article is on formulating a financial plan for a 30-year-old individual to achieve a $4,000 passive income goal by age 40. It emphasizes the misconception of passive income being 'free money,' stressing the need for initial hard work and strategic planning to establish sustainable sources of income.
As for the AI-generated financial plan components, here's an overview:
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AI Tip 1: "Leverage AI-Powered Investment Platforms."
- These platforms employ AI algorithms for investment decisions, offering diversified portfolios and automated management.
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AI Tip 2: "Explore AI-Based Real Estate Investment Tools."
- AI aids in property analysis, predicting market trends, and optimizing investment decisions in the real estate sector.
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AI Tip 3: "Utilize AI-Enhanced Stock Trading Systems."
- AI-driven systems analyze market data, predict stock movements, and execute trades with speed and accuracy.
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AI Tip 4: "Develop AI-Driven E-commerce Ventures."
- AI tools optimize product recommendations, customer interactions, and marketing strategies, enhancing profitability in e-commerce.
Each of these tips suggests leveraging AI capabilities in different sectors to facilitate income generation, aligning with the increasing reliance on technology for financial optimization and wealth creation.
Understanding these concepts and their practical applications can lay the groundwork for a tailored and effective financial strategy, acknowledging both the potential and the necessity of hard work and strategic planning in wealth creation.
