Personalized Financial Planning Made Easy with AI-Powered Bots

Managing your money can feel like a big puzzle. You might wonder, “How much should I save?” or “Are my investments enough for the future?” These are important questions, but finding answers often means talking to financial experts. This can take a lot of time and money. What if there was a simpler, easier way?

In this blog, we’ll discuss how a smart digital helper called an AI-powered bot can make financial planning easy by giving tips tailored just for you.

Why a Bot for Financial Planning?

Think of this bot as your friendly money assistant. It helps you decide how much to save and invest to live comfortably now and after retirement. You don’t need to be a math genius or a financial expert.

How the Bot Works

Features and User Interaction

The bot’s conversation is easy and user-friendly. Here’s how you can interact with it:

Available Commands

1. /start – This is like knocking on the bot’s door. Type /start, and the bot will wake up and be ready to help you.
2. /help – If you ever feel stuck or don’t know what to do, type /help. The bot will give you a list of commands and explain what each one does.
3. /start_poll – This is where the bot will ask you simple questions about your financial stuff. You just have to answer them.
4. /set_default – Want to set something basic, like an inflation rate? Use this command, and the bot will remember it for your advice.
5. /correct_answers – Did you make a mistake while answering? No worries. Just type /correct_answers, and you can fix it.
6. /generate_result – When you’ve responded to everything, type /generate_result. The bot will use your answers to give you personalized financial advice.
7. /cancel_poll – If you want to stop or take a break, type /cancel_poll. You can always come back and continue later.

Example Interaction

Let’s see how a typical interaction might go:

1. Start the Bot:
   Find the bot on Telegram and type /start.
2. Answer Questions:
   The bot will ask simple questions like:
   • What is your annual income? (e.g., $100,000)
   • At what age will you start saving? (e.g., 35 years)
   • When do you plan to retire? (e.g., 60 years)
   • What is your expected interest rate? (e.g., 10%)
   • What inflation rate should be considered? (e.g., 6.3%)
3. Get Results:
   Once all questions are answered, type /generate_result. The bot provides actionable advice:
   “To ensure a yearly consumption of $73,267 from age 35 to 80, save $26,733 annually at a 10% interest rate.”

Technical Architecture

Here’s a flow diagram illustrating how the bot works:

Combining Telegram’s API and backend logic ensures smooth interactions and accurate results.

How Does the Bot Work?

Imagine your bot is a super-smart assistant who listens to people, processes their requests, and gives them helpful financial advice. This process happens step by step, like solving a puzzle. Let’s break down each part of the diagram.

Step 1: User Input

• What Happens Here?
  • The user types a message into the Telegram app (like asking, “How much should I save every month?”).
  • This is called User Input because the information comes from the user.
• Example:
  The user might type: What should I save for retirement?

Step 2: Telegram Interface

• What Happens Here?
  • Telegram acts as the bridge between the user and the bot.
  • It takes the user’s message and sends it to the bot.
• Example:
  Telegram delivers the user’s question to the bot, saying, “Hey bot, someone wants to know about savings!”

Step 3: Handlers

• What Happens Here?
  • Handlers are like receptionists for your bot. They figure out what the user wants by looking at the message.
  • They then pass the request to the right part of the bot to handle it.
• Example:
  If the user types, “Tell me about retirement savings,” the handler decides this is about financial planning and sends it to the bot’s financial calculator.

Step 4: Finite State Machine (FSM)

• What Happens Here?
  • The FSM is like a flowchart inside the bot that helps it decide what to do next based on the user’s input.
  • It organizes the conversation into steps, so the bot doesn’t get confused.
• Example:
  If the user asks, “How much should I save?” the FSM may follow these steps:
  1. Ask the user for their income.
  2. Ask about their savings goals.
  3. Calculate the amount to save.

Step 5: Validation & Filtering

• What Happens Here?
  • This step checks if the user’s input makes sense.
  • If there’s a mistake (like typing “abc” instead of a number), the bot asks the user to try again.
• Example:
  If the user types “abc” instead of a number, the bot replies:Please enter a valid number.

Step 6: Utils (Financial Calculations)

• What Happens Here?
  • This is the brain of the bot where the real work happens.
  • The bot uses formulas and math to calculate things like how much the user needs to save.
• Example:
  If the user’s income is ₹50,000 and they want to save for 10 years, the bot calculates how much they need to save each month to reach their goal.

Step 7: Personalized Financial Advice

• What Happens Here?
  • After doing the calculations, the bot prepares a friendly response tailored to the user’s situation.
• Example:
  The bot might say:Based on your income, you should save ₹5,000 per month to reach your goal in 10 years.

Step 8: User Output (via Telegram)

• What Happens Here?
  • The bot sends the final answer back to the user through Telegram.
  • The user can read the advice and ask more questions if needed.
• Example:
  The user receives the bot’s advice as a message in Telegram:You should save ₹5,000 per month. Let me know if you need more help!

How to Build Your Own Financial Planning Bot

Let’s create a helpful financial planning bot that works on Telegram! Don’t worry if you’re new to coding—just follow these steps one at a time.

Step 1: Set Up Your Environment

1. Install Python (The Language Your Bot Speaks)

• What is Python?
  Python is a computer language that we will use to “talk” to your bot. Think of it as the language the bot understands, just like we understand English or Hindi.
• How to Install Python:
  1. Go to the website: https://www.python.org/downloads/.
  2. Download Python for your computer.
  3. Open the file you downloaded and follow the instructions to install Python.
  4. IMPORTANT: During installation, check the box that says “Add Python to PATH.”

2. Install Libraries (Tools for Python)

• What are Libraries?
  Libraries are like pre-built tools or apps for Python. Instead of writing everything from scratch, you can use these tools to make Python do specific tasks, like sending messages or solving math problems.
• How to Install Them:
  1. Open your computer’s terminal (a place where you type commands).
     • On Windows, press Windows + R, type cmd, and press Enter.
     • On Mac, use Command + Space, type Terminal, and press Enter.
     • On Linux, just open the Terminal.

2. Type this command and press Enter:

pip install python-telegram-bot python-dotenv pandas numpy

3. This command installs all the tools (libraries) you need for the bot.

3. Set Up Hosting (Where Your Bot Lives)

• Why Do You Need Hosting?
  Your bot needs a place to live so it can work 24/7, even when your computer is off. Hosting is like renting a home for your bot on the Internet.
• What to Do:
  1. Create an account on a cloud hosting platform like AWS EC2 (Amazon Web Services).
  2. Follow AWS’s guide to set up a free virtual machine (a small computer on the internet).
  3. Install Docker on your virtual machine (this will help us “package” the bot later). Use these commands on the virtual machine to install Docker:

sudo apt update
sudo apt install docker.io

Step 2: Create the Bot on Telegram

1. Talk to the BotFather (Telegram’s Bot Maker)

• Open Telegram on your phone or computer.
• Search for @BotFather in the search bar.

2. Create Your Bot

• Start a chat with BotFather and type /newbot.
• BotFather will ask for:
  1. Your bot’s name (e.g., “MyFinanceBot”).
  2. A username for your bot (it must end in bot, like MyFinanceHelper_bot).

3. Get Your API Key

• After creating your bot, BotFather will give you a long code called an API key.
• This key is like your bot’s password, so keep it safe. You’ll need it to connect your bot to the Telegram app.

Step 3: Write the Bot Code

1. Organize Your Files

• Create a folder on your computer named bot_project.
• Inside this folder, create these files and folders:

bot_project/ ├── handlers/ │   └── polling_handler.py ├── utils/ │   └── finance_calculations.py ├── bot.py ├── .env └── Dockerfile

2. Add the Code

• Open a code editor (like Notepad++ or VS Code).
• Add the following files one by one:

A. handlers/polling_handler.py
This file helps the bot talk to users:

async def start(update, context):
    await update.message.reply_text("Welcome to AutoFinAdvisorBot! Type /start_poll to begin.")

B. utils/finance_calculations.py
This file calculates how much to save:

def calculate_annual_savings(income, t1, t2, t3, rate, inflation):
    real_rate = ((1 + rate) / (1 + inflation)) - 1
    return (income * (t3 - t2)) / (real_rate * (t2 - t1))

C. bot.py
This is the main script that connects everything:

from telegram.ext import Application, CommandHandler
from handlers.polling_handler import start
from utils.finance_calculations import calculate_annual_savings

app = Application.builder().token("YOUR_API_KEY").build()
app.add_handler(CommandHandler("start", start))

D. .env
This file stores your API key:

API_KEY=your-telegram-bot-api-key

Step 4: Deploy the Bot (Make It Go Live)

Now that your bot is created and coded, it’s time to make it available on the internet to respond to users 24/7. This is called “deployment.” Let’s break it down step by step so anyone can understand.

1. Create a Dockerfile

A Dockerfile is like a recipe for creating a virtual environment for your bot. Think of it as preparing a specific “container” that includes everything your bot needs to run, such as Python and all the libraries.

Here’s what each line in the Dockerfile means:

FROM python:3.9-slim

• What it does: This sets the base for your container. It’s like choosing a blank canvas that already has Python 3.9 installed but is “slim,” meaning it only includes the essential files to keep things lightweight.

WORKDIR /app

• What it does: This sets up the “working directory” inside the container where all the bot files will live. It’s like saying, “Put everything in the /app folder.”

COPY . /app

• What it does: This copies all the files from your bot project folder (on your computer) into the /app folder in the container.

RUN pip install -r requirements.txt

• What it does: This installs all the libraries listed in your requirements.txt file (such as python-telegram-bot and pandas). It’s like preparing the tools your bot needs to run.

CMD ["python", "bot.py"]

• What it does: This tells the container to start the bot by running the bot.py file when the container launches.

Why use Docker?

• Docker ensures that your bot runs the same way everywhere, whether on your computer or a cloud server.
• It simplifies deployment by packaging your bot and its dependencies into one neat “container.”

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2. Host the Bot on AWS

AWS (Amazon Web Services) is a popular cloud platform that provides virtual machines called EC2 instances. Hosting your bot on AWS ensures it stays online and accessible 24/7.

What You Need to Do:

1. Upload Your Bot Folder:
   • Use tools like scp (secure copy) or AWS’s web interface to upload your bot_project folder to the EC2 instance.
   • This means copying all the bot files (including the Dockerfile) to the virtual machine on AWS.
2. Build the Docker Image:
   • After uploading, login to the EC2 instance and run this command:docker build -t my-bot .
   • What it does: This creates a Docker image (a blueprint) for your bot, based on the instructions in the Dockerfile.
3. Run the Docker Container:
   • Once the image is built, run this command:docker run -d my-bot
   • What it does: This starts a container using the Docker image, making your bot live and ready to interact with Telegram users.

Breaking It Down:

• docker build: Think of this as baking a cake using the Dockerfile as the recipe.
• docker run: This is like serving the cake—it starts the bot and makes it accessible online.
• -d: This flag means “run in the background,” so your bot doesn’t stop if you close the terminal.

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How It Works Together:

1. Docker + AWS: Docker ensures your bot has everything it needs to run, and AWS provides the “home” where it stays online.
2. Why Deploy This Way?
   • Your bot won’t depend on your personal computer or internet connection.
   • AWS’s cloud servers are reliable and secure.
3. What’s Next?
   • Share your bot’s username with friends or users, and they can start chatting with it on Telegram!

Summary of Technology Used

Technology Used	Purpose
Python	Programming language for building the bot logic.
python-telegram-bot	Library for interacting with the Telegram API to send and receive messages.
python-dotenv	Used to securely manage and access API keys and environment variables from a .env file.
pandas	Data manipulation library used for handling financial data.
numpy	Mathematical library for performing numerical calculations.
AWS EC2	Cloud hosting platform to keep the bot online 24/7.
Docker	Tool for containerizing the bot to ensure consistent deployment across different platforms.
Finite State Machine (FSM)	Logic framework for managing conversation states in the bot.
Validation Functions	Ensures the user inputs valid data and filters out incorrect or meaningless inputs.
Handlers	Routes user queries to the correct part of the bot’s logic.
Utils Module	Performs financial calculations, such as savings and investment advice.
Telegram Interface	Acts as a medium for user input and output, facilitating communication with the bot.
Streamlit (optional)	Can be used to create a simple user interface if extending beyond Telegram.

Why AI Chatbots Are the Future of Finance

AI-powered bots like AutoFinAdvisorBot democratizes financial advice. They offer:

• Accessibility: Available anytime, anywhere.
• Affordability: Free or low-cost compared to human advisors.
• Personalization: Tailored plans based on user goals.

Conclusion

Financial planning doesn’t have to be intimidating. AI chatbots like AutoFinAdvisorBot make it simple, delivering actionable advice straight to your phone. Whether you’re saving for retirement or planning your next big goal, these tools empower you to take charge of your finances—one step at a time. Start your journey today. A financially secure future is just a few clicks away!