I Let AI Analyze My Finances — It Found a Huge Mistake

Hey, it is prudent Pelton here today, and I'm going to show you the one financial mistake that most people make that's costing them thousands of dollars every year. And no, it's not buying too many lattes. It's not carrying credit card debt. It's not picking the wrong stocks. This mistake is actually way simpler than that, but it's killing a lot of your wealth building potential. I recently started testing eight figures, which is an AI powered investing tool and it opened my eyes to something pretty shocking about my own finances. So before we get into it, I want to ask you right now, what's your exact net worth right now? Not a rough estimate, but what's the actual number assets minus liabilities. If you can't answer that question quickly and accurately and confidently, you're making the mistake and you're flying completely blind with your money. Here's one of the most important things that I've learned in business is you can only improve what you track. This is basic business one-on-one. So every company has KPIs, key performance indicators, and they track revenue, profit margins, customer acquisition costs. They measure everything because you can only improve what you are actually tracking. But somehow when it comes to personal finances, myself included, I just kind of wing it. Sometimes it's like, I don't actually know how much money's in my bank. I, you know, I could go through and calculate everything. I don't know my net worth off the top of my head. I'm not tracking it the way that I track my businesses and actually see this a lot in tech. But you have engineers who are obsessed with data and metrics at work, but they couldn't tell you what their net worth is right now. They know their apps daily active users, you know, down to a decimal, but they have no clue if they're financially better off than they were last year. If you're not tracking it, you won't know if you're making progress towards your goals. And again, I'm guilty of this too. And I kind of excuse it because it's like, well, I have money in too many different things. There's no way to track it. That is no excuse. You should know your financial position. So then when it comes to metrics about your personal finances, what most people focus on is their salary. How much are they bringing in monthly or annually? And that makes sense because, you know, our bills, Netflix and gas and your mortgage, you pay monthly. So it makes sense to know, okay, I'm making this amount monthly. My bills are this amount monthly. I mean, that makes sense. And you should be tracking that. But actually net worth is the most important financial metric. It shows if you are actually making progress year by year, month by month, it's everything you own minus everything you owe is your net worth. I know people who are making $60,000 a year who are actually, they have a higher net worth and are actually in a better financial position than some people that are making $150,000 a year. And it's because they actually track their wealth. It makes them budget better and they're being intentional about the decisions they make with it. High income does not equal wealth. I've seen software engineers making 200 K plus who are basically broke because they have no idea where their money's going. So your net worth is your financial scoreboard. Without it, you're just guessing. And just like in business, if you're just guessing, you're never going to achieve your goals. So that brings me, you know, anytime I'm having a problem these days, first, I take it in prayer. Second, I look at AI tools that can help me in my deficiencies. So this tool is called eight figures and I know what you're thinking. You know, an AI investor advisor, that sounds like a bit much. I don't know if I'm interested in that. That's kind of, that was my first reaction to, but I spoke with the founder and he's actually an ex Goldman Sachs guy. And this is not just a robo advisor that just throws you some generic portfolio, but it actually analyzes your current holdings and gives you personalized advice based on market conditions. So they are registered with the sec, which is not an easy process to do, especially for AI tools. And then look down here, they've got a Warren Buffett quote from Omaha, Nebraska, but they're not managing your money. They're not holding any of your money. They don't hold assets. It's just analysis and advice and helping you keep track of what you have, where it is and what it's doing. So I kind of set up a test account here to kind of show you what you can do. Thought about showing you my actual numbers, but I don't think that that's wise. But you can link directly with banks. You can link directly with Zillow for real estate. You can link directly with your wallets for crypto. So, or you can just add things manually, you know, like Bitcoin. So that if you link your accounts, it'll pull in all the numbers automatically. That's the easiest, but you can just manually add things to, you can add, I bought Bitcoin. You can say when you bought it, you can say what you bought it at and it'll tell you your profit. So you can also upload like a CSV file and AI will take a look at it and try to put it in automatically. So you can put everything in, you can put cash, crypto, your car, whatever you want. If you're, if you're calculating net worth, you should put in everything, all of your assets, all your liabilities, that will give you your net worth. So if you have an IRA, you can actually go in and put, you know, what stocks you actually purchased. Tesla, of course, VU, QQQ, that keeps track of what dividends that you've been paid out. So then they have an advice hub where it looks at your portfolio, gives you news and what's going on in the markets related to what you have. So then being registered with the SEC, there's a lot of data privacy stuff that they comply with and they don't have access to your data. You actually, if you need support to take a look at your account, you actually have to check on allow data access for even support to get access to your account. So if you want to try it out, promo code James one M I'll leave it down in the description, but you get a month free so you can try it out before you know you invest anything. I would encourage you if you're not currently tracking things, go try out eight figures, but whether or not you use eight figures, you need to start tracking your wealth. So a little bit of homework, please do this. Like and subscribe. Number two, calculate your net worth right now. If somebody asks you, what's your net worth? Do you know the answer off the top of your head? Don't wait until tomorrow. Don't wait. What a lot of people do is, Oh, once I get it, you know, this cleaned up, get the number. Even if it's painful, a lot of people have negative net worths. I just read something that says over 30% of Americans have a negative net worth. Okay. So you might not want to do this. You might not want to find your network. That might be, you know, negative $25,000 or something like that, but it's a starting place and it shows you if you get negative 25,000 and then next year you're at negative 20,000 that shows you're going in the right direction and eight figures can help you with this too. They have the charts to kind of show that projecting forward, you know, if you keep your money in these positions with these returns, this is what it's expected to do. So calculate your net worth right now. Get all your bank accounts, all your assets, get all your liabilities. Using something like eight figures is way easier, but if you want, you can use a spreadsheet or something like that. Step two, make a note to update this regularly. So I would recommend at least monthly where you're going through, because what happens a lot is you sit down one day and calculate it. Then you wait five years and it's like, well, I know five years ago my net worth was this. This is something you should have on your mind regularly. Are you moving closer to your goals? And then step three is get help with your analysis. Where is your money? What's going on with it? You can do a lot of this research yourself, or if you don't have a lot of time, you can use AI. You can use the advice sub. You can use a tool like eight figures, but remember you can only improve what you track common saying in business. You can only improve what you measure. So start measuring your net worth. So again, link to eight figures in the description. Also pin a comment, James one M you get a free month. So go just try it out. Like and subscribe. I appreciate you guys very much. God bless and have a great rest of your day.