New financial year: How to smartly do financial planning for FY27 using AI tools like ChatGPT

Does financial planning feel like preparing for a high-stakes math exam, always confusing and overwhelming? We’ve all been there; when we enthusiastically sit down to plan the new financial year on the spreadsheet, but most of the time, we are unsure of where to start. 

The times are now changing. In the age of Artificial Intelligence (AI), managing money is becoming clearer, simpler, and less time-consuming. Many individuals are now turning to AI tools like ChatGPT, Gemini, Claude, and others to help manage their finances in a smart and efficient way. Therefore, if you are also delaying planning for the new FY27, here’s how you can leverage these AI tools to create an actionable financial plan.

Step 1: Audit what you actually earned

The very thing people should start with is to accumulate the exact figures of what they’ve earned, as in most cases, an estimation of earnings may not be fruitful. Therefore, bring together your salary slips, side earnings, rental income, or interest earned over FY 2025-26,

Now, provide these figures to ChatGPT or any preferred AI tool, and ask for a category-wise breakup summary of your total annual income. Make sure to include even the smaller income sources that could have tax implications. 

Step 2: Pick your tax regime

In 2026–27, the government has improved the new tax regime with better slabs, standard deduction, and Section 87A rebate. However, choosing between the old and new tax regimes could be confusing. However, the right tax regime depends on personal finances.

Therefore, to check which is the best suited for your finances, people can quickly estimate the tax regime using ChatGPT.  Simply provide details such as salary, deductions, and investments, and it will provide a detailed comparison that can help you choose the better option.

Try this prompt: "My annual salary is [amount]. I pay [amount] in home loan interest, receive [amount] as HRA, and have invested [amount] under 80C. Can you compare my tax liability under the old and new tax regimes for FY 2026-27 and recommend which suits me better?"

Step 3: Plan fixed monthly expenses

First, understand where money is spent the most every month. This could include fixed monthly expenses such as rent or EMIs, insurance premiums, subscriptions, ongoing investments like SIPs, and others. Once the full list is prepared, leverage AI to understand monthly spending.

Note that if more than 50% of your salary goes into fixed costs, then you might be financially stretching. 
Try this prompt: "My take-home salary is [amount] per month. My fixed monthly expenses are: [list them]. What percentage of my income goes toward fixed costs, and where can I look to optimise?"

Step 4: Use AI to set savings and investment targets

To plan your savings and investments, provide ChatGPT with your goals, such as retirement, house, education, etc. Now, provide current income and investments. Based on this, AI can provide a basic allocation across equity, debt, and options like PPF or NPS to get started. You can also provide your age and time horizon for a more personalised result.

Step 5: Plan emergency funds

Notably, one must keep three to six months of savings as a safety buffer. However, saving emergency funds could be tough with the rising costs and fluctuating EMIs. 

With AI tools, people can prompt to calculate an emergency fund target on their behalf and also suggest a monthly savings plan to reach it within a desired time frame. This reduces the hassle of tedious calculations.

Step 6: Create a one-page annual plan

Once the income, expenses, savings goals, investments, and emergency fund are carefully mapped out, prompt AI to provide a one-page summary or to organise details into a clear and easy-to-read format. 

Make sure to save the plan and review it every few months.

You can also add the text prompt provided below into ChatGPT, filling in your specific details to get started instantly:

“I want to create a simple financial plan for FY 2026–27. My monthly take-home salary is [amount]. My fixed monthly expenses are approximately [amount], including [rent, EMI, SIPs, insurance]. My financial goals for the year are [e.g., build an emergency fund, increase SIP, save for a home down payment]. I currently invest [amount] per month in [instrument]. I prefer the [old/new] tax regime. Please help me: estimate my annual tax liability, suggest a monthly savings and investment plan, calculate my emergency fund target, and give me a simple one-page plan I can follow for the year.”

Disclaimer: While using AI tools makes life easier in several ways, keep in mind that such planning requires sharing personal and financial details with AI. Therefore, be cautious about what you disclose and avoid sharing sensitive information like bank account numbers, passwords, or identification details.