Passive income can be a great way to help you generate extra cash flow, and the economic upheaval largely caused by the COVID-19 crisis is a testament to the value of having multiple streams of income. With the pandemic throwing the job situation of many Americans into disarray, passive income helps you bridge the gap if you suddenly become unemployed or even if you voluntarily take time away from work. But with so many passive income apps out there, how can you know which ones are worthwhile and which ones are a waste of time? Join Virlan to learn more.
What is passive income ?
Because passive income is such a buzzword these days, it seems only right to provide a small caveat about what we mean when we say “passive income apps.”
While many people use the word “passive income” to describe a wide spectrum of potential revenue sources, in this article, we’ll stick to apps that can generate extra income from activities you’re presumably already doing on a regular basis (creating, driving, shopping, using your phone, etc.)
While not all of these passive income apps are 100% passive, they all require minimal work and, over time, can supplement your income very nicely.
How Do These Apps Work ?
Passive income is a side hustle that you set up once and forget. Through several different technologies, including Robo-investors and algorithms, the app works for you, allowing you to focus on other things as you earn passive income.
Some apps will take a cut of the income they’re able to generate for you. Others might offer a premium account with the chance of making even more money. This will differ from one app to the next.
The best passive income apps to make extra cash on the side:
1. Open a High-Interest Savings Account
Savings accounts have gotten a bad rap over the last decade, with consistently low savings rates making them less attractive.
Online banks are changing the narrative.
Financial institutions such as EQ Bank, Tangerine, and Wealthsimple are now offering high-interest savings accounts that in some cases pay 30x the rates being offered by traditional banks.
EQ Bank: They offer 1.50% on their savings plus account. This hybrid account also offers free and unlimited bill payments, e-Transfers, and cheque deposits. Read the review.
Wealthsimple Cash: In addition to a 0.75% rate, this account also offers free transactions, no monthly fees, chequing account capabilities, free ATM withdrawals, and no FX fees (coming soon). Read the complete review.
You can access your savings accounts with all these banks using their mobile apps.
A high-interest savings account is one of the safest ways to keep your money. You may not earn extraordinary returns, however, you can almost guarantee your returns. There is also protection offered through regulations and insurance deposit insurance.
Lastly, no effort is required on your part.
Public.com not only offers the opportunity to invest in a variety of stocks but also lets you connect with other like-minded investors as you would do on social media.
It has themed bundles where you can invest in several companies that have something in common. Such themes include women entrepreneurs and environmentally friendly companies.
You can also buy fractional shares if you want to invest in big companies without shelling out the cash to buy an entire stock.
- Interact with more experienced traders
- Investing themes for a diversified portfolio
- Start investing with any amount of money
3. Earn Dividend Income as passive income apps
When you purchase the stock of a company or business, you become a part-owner and may be eligible to share in their profits by way of dividends.
Dividend-paying stocks can provide you with a steady income for life and you can also earn capital gains if you decide to sell the stock after it has appreciated in price.
All investments carry an element of risk and you need to know what you are doing to be successful with buying and selling stocks.
You can purchase stocks using an online brokerage account. Two online trading apps I recommend are:
- Wealthsimple Trade: Offers FREE trading on thousands of Canadian and U.S. stocks and ETFs. Open an account here ($25 bonus) or read review.
- Questrade: They offer self-directed online trading of stocks, ETFs, mutual funds, options, etc. Open an account here.
If you are not up for the hassle of researching stocks and their financials or fundamentals, consider sticking with a robo-advisor.
4. Trim App
Trim looks at your expenses and suggests ways to save money by trimming down bills. It works in the background and requires no input from you.
It is also free to use but takes a percentage of any savings it can get you. Trim makes it very easy to save money, and while it’s not income, it is still more money in your pocket.
- Works in the background to save you money
- Free to use
- Takes a percentage of savings
5. Swagbucks for more income
If you spend a lot of time shopping online or doing anything on the Internet, then you could be missing out on free money from the passive income app swagbucks.
Swagbucks pays you to do stuff you were already planning to do anyway: shopping on Amazon, watching YouTube videos, and lots more.
Then, once you’ve built up enough swagbucks to cash them in, you can trade for gift cards to your favorite retailers or cash via PayPal.
6. passive income apps like: Honeygain
Here’s one of the most creative and simple passive income apps I’ve found in a long time: it’s called Honeygain and it relies on “sharing internet” to bring you passive income.
What does that mean exactly? It means you can simply install this passive income app, surf the web, and start collecting passive income right away.
You get paid to let Honeygain take advantage of the unused traffic resources on your computer. They then sell that to data scientists and others, sharing that payout directly with you.
7. Fetch Rewards
If you’ve got a lot of mouths to feed, you know that groceries can take a massive bite out of your monthly finances (pun intended).
With Fetch Rewards, you can collect rewards for buying the food you already have on your shopping list.
Just download the app, shop for groceries, scan your receipt, and the app will send you rewards for purchases you were going to make anyway.
8. Capital One Shopping
Capital One Shopping (formerly Wikibuy) offers excellent offers and deals when making online and local purchases. There’s also a browser extension that automatically applies coupon codes when checking out at participating outlets – helping you save money as you make your usual purchases.
There are many stores and products to choose from, allowing you to save money on many different things.
- Wide range of stores and products
- Local offers
- Chrome extension applies coupon code at checkout
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9. passive income App like: Paribus
Paribus syncs with your email to scan for any recent purchases you might have made online. It will then compare the price you paid with current prices and help negotiate a refund where possible.
If successful, the difference in price will be sent to you. They track over 25 of the biggest retailers around, including Target, and Best Buy.
- Checks if you are eligible for a refund
- Can get compensation for late deliveries
- Tracks return windows for you
10. Acorns for earning passive income
Acorns is an app with two missions – micro-savings and micro-investments. It automatically rounds off purchases you make to the nearest dollar.
The extra money is saved and then invested by a Robo-advisor. You will also earn a bonus investment when making a purchase from any of the 350+ participating outlets.
- Saves and invests your spare change
- Bonus investment cash backs
- Strong security with 256-bit encryption
Even more passive income ideas:
Naturally, this list of passive income apps only scratches the surface of what’s possible when it comes to making money via passive income.
There are hundreds (probably thousands) of ways to make passive income—including some you’ve never even considered —so the only thing stopping you from making (or saving) a few hundred dollars each month is your own creativity and go-getter attitude.