Hey, it’s Jeffrey, back again!
A few weeks ago, we tackled emergency funds. This week, we’re going bigger:
What if you could skip the spreadsheets, forget tracking every expense, and still feel totally in control of your money?
That’s the power of a Pay-First Budget, popularized by Ramit Sethi. It flips budgeting on its head:
Save and invest first
Automate everything
Spend the rest guilt-free
And with the right tools (including AI), you can set it all up in under 30 minutes.
📬 In this email:
In today’s Money Meets AI edition, we look at:
📅 Step 1: Define Your Pay-First Targets
⚖️ Step 2: Automate Your Savings (with Smart Rules)
🛍️ Step 3: Spend the Rest Guilt-Free
🛠️ Tools to Make It Easier
⟳ What to Do Next
THIS WEEK’S TESTED SYSTEM
📅 Step 1: Define Your Pay-First Targets
Best for: Deciding where your money should go each month
Where do you want your money to go first? The goal is to prioritize your savings targets and assign money to each one.
An example could be:
$500/month to savings
$300/month to investments (e.g., Roth IRA)
$150/month to travel
$100/month for future big purchases
I asked ChatGPT:
I want to pay myself first each month before I spend. To do so, I want to save for the things I need so I can spend the rest. What categories of things do I need to save for?
I also told ChatGPT I wanted to set target amounts for each category. Here’s what it came up with:
💡 Sample Monthly Savings Plan Total: ~$1,200/month
These are sample numbers, so for it to work, you’ll either need to calculate from your actual spending or make some estimates you can adjust later.
Next, we’ll automate the savings for these categories.
💡 Pro tip: Use percentages rather than flat dollar amounts if your income fluctuates or you get a raise. That way, it’s easier to scale up.
⚙️ Step 2: Automate with Oportun’s Savings Buckets
Best for: Setting and funding multiple goals without manual effort
Oportun lets you create multiple “Set & Save” goals, essentially buckets for specific purposes like vacations or emergency funds.
You connect your checking account and set up as many goals as you want: ʻSet a rainy-day fundʼ, ʻSave for a vacationʼ, etc.
Oportun’s AI analyzes your income, bills, and spending habits to determine small amounts that will automatically be applied to each goal.
Your goals can simply copy the above, including:
Rainy day/Emergency fund
Vacation
Car repairs
You don’t need to tag your money manually. Oportun handles the distribution for you automatically.
You can also try other tools like Qapital, which I covered in the previous post on emergency funds.
You can always use a plain high-yield savings account to get the job done, too.
💡 Pro tip: Use Oportun’s “Boost” or priority feature to allocate more to a specific goal when needed.
🛍️ Step 3: Spend the Rest Guilt-Free
Best for: Enjoying your money without second-guessing every dollar
Once your savings goals are automated, the money left in your checking account is yours to spend — no guilt, no spreadsheets required.
This is the beauty of the “pay yourself first” system:
You’ve already handled the important stuff, like savings, investments, travel goals. Now, you can enjoy dining out, buying that new jacket, or upgrading your headphones, without stressing about whether you should be saving instead.
💡 Example prompt for ChatGPT:
I’ve already saved $1,200 this month for long-term goals. Can you help me brainstorm ways to enjoy the rest of my money (about $500) guilt-free, including ideas for fun purchases, experiences, or indulgences?
This part’s really just for fun, but it’s good to let ChatGPT remind you that spending can be a feature, not a bug, of good money management.
Here’s what ChatGPT suggested for me:
Limitations of AI Tools and Things to Watch For
Nothing significant to report this week. Just remember that ChatGPT doesn’t know your actual finances, so you’ll need to provide estimates or details manually.
🛠️ Other Tools to Check Out
Here are more tools that pair well with this approach:
Monarch Money – A full dashboard to track income, savings, and net worth
Empower – Scheduled transfers + AI savings “boost”
YNAB – Best if you still want full budget control and want to bucket your money without needing to move it around.
🎯What to Do Now
📋 List 2–3 savings or investing goals
⚖️ Automate your pay-first rules with Oportun or another app.
📆 Add more savings goals over time
🚀 Enjoy spending the rest without guilt
PS—I’d love to hear your other feedback or suggestions. Just hit reply — I read every email!
How did you like today's newsletter?
One quick note: This newsletter is for educational purposes only and does not constitute financial advice. I’m not a financial advisor — just someone sharing ideas and tools I’ve found useful. Use what works for you, skip what doesn’t, and always do your own research before making financial decisions and using the tools shared in this newsletter.