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Using AI to Create a Budget

Badget includes automated budgeting features powered by machine learning. These features analyze your transaction history and generate recommended spending plans.

Quick Start

  1. Connect your accounts – Use the Plaid integration to link your bank and credit card data.
  2. Import transactions – Transactions are categorized automatically using AI-driven pattern recognition.
  3. Generate a budget – From the dashboard, select "Create Budget" to let Badget build a smart spending plan.
  4. Review recommendations – Budgets adjust dynamically based on new data and your financial goals.
  5. Track progress – Monitor spending against AI suggestions and receive alerts when you're off track.

How It Works

Badget examines your historical transactions to identify spending patterns. It then provides:

  • Smart Budget Creation – Budgets suggested from past spending habits.
  • Dynamic Adjustments – Real‑time budget recommendations as new transactions arrive.
  • Goal Alignment – Budgets that factor in your savings or payoff targets.
  • Optimization Alerts – Suggestions to reallocate funds when opportunities arise.

These capabilities are outlined in the project vision in README2.md.

Using Vercel AI

Badget can leverage the Vercel AI SDK to run machine learning models in real time using server actions.

  1. Install the Vercel AI SDK: pnpm add vercel-ai
  2. Create a server action that sends prompts to your preferred model.
  3. Consume the returned text or stream directly from your components.
// Example: src/actions/ai-budget-actions.ts
export async function runAiPrompt(prompt: string) {
  const openai = new OpenAI({ apiKey: process.env.OPENAI_API_KEY! });
  const chat = await openai.chat.completions.create({
    model: 'gpt-4o',
    messages: [{ role: 'user', content: prompt }],
  });
  return chat.choices[0]?.message?.content?.trim() || '';
}

Call this server action from your React components whenever you need on-demand budget insights.

Programmatic Recommendations

The generateBudgetRecommendations server action computes suggested monthly budgets from the last few months of spending. It groups expenses by category and optionally summarizes the results with OpenAI.

import { generateBudgetRecommendations } from '@/actions/ai-budget-actions';

const { recommendations, summary } = await generateBudgetRecommendations(3);

Each recommendation includes the average monthly spend and a slightly padded budget amount.

Advanced AI Features

Badget's AI toolkit goes beyond basic budgeting. Additional server actions expose:

  • Anomaly Detection – detectTransactionAnomalies() flags transactions that deviate from historical averages.
  • Spending Forecasts – forecastCategorySpending() predicts next month's expenses per category.
  • Goal Driven Adjustments – generateBudgetRecommendations() automatically accounts for active savings goals.
  • Natural Language Insights – answerFinanceQuestion() lets you ask free‑form questions about recent spending.
  • Personalized Tips – generateBudgetTips() creates short suggestions to save money based on your habits.
  • Streaming Interfaces – Server actions like runAiPrompt() can power voice or chat assistants.

These functions are intended as building blocks for dashboards, notifications or conversational interfaces.