Passive income flows in while you’re busy with other life or work-related commitments. So, if you want to get out of debt, supplement your monthly income or save up for your next vacation, consider passive money making apps.
Here’s a description of how different categories of passive money making apps work.
Shopping apps give you an opportunity to make money through an activity such as shopping. While shopping is an active and regular activity that you would be doing anyway, you can earn a passive income in terms of rewards.
However, you need to be careful with shopping apps to avoid spending more money than the rewards you earn.
Some of the most notable shopping portal rewards apps include:
Seated: This app is designed for restaurant dining. If you’re a frequent diner you can earn several gift cards worth $60 each time you make a restaurant reservation through the app.
Ebates: This is a popular app that partners with over 2,000 eCommerce businesses that pay cashback rewards. So, you can get cash back on your online shopping activities through Ebates.
Birch Finance: This app helps users maximize their credit card rewards by analyzing their regular spending. The app can also recommend the best credit cards for their users based on their spending patterns.
Saving And Investing Apps
With savings and investing apps, you can save more through saving and investing a portion of your usual spending or by earning investment income. Both of these activities are regular and thus, considered passive activities. With either of these two approaches, you’ll earn a passive income on a monthly basis.
These types of apps involve some level of risk taking. If you don’t like takings risks, consider diversifying your options by using several savings and investing apps.
For instance, you can use a small amount of money to diversify your portfolio by focusing on several apps that are designed for bank savings, bonds, real estate and stocks.
Savings And Investing Apps
Capital One 360: This helps users to earn a passive income on their banking activities.
Digit: This is an awesome micro-savings app designed to help people who are not habitual savers. In other words, it helps you save very small amounts of money and build up some passive savings in your Digit account.
Acorns: This is a micro-investing and micro-savings app that uses a system called “round ups” whereby it turns your spending amount into savings and investments by rounding it up.
For example, if you spend $6.25 on your shopping, Acorns will round the amount up to $7 and save the remaining 75 cents which it will transfer to your Acorns account.
When you accumulate $5 in your Acorns account the money will be transferred to the apps’ robo-advisor where it will be invested on your behalf.
Stash: This app allows users to invest their money in small increments of $5 at a time. They give potential investors an opportunity to start their investing journey.
Betterment: This is a platform that allows users to automatically open new accounts and start making contributions. The app will then create a portfolio for its investors and manage their accounts at a small fee.
Peer Lending Apps
These are apps that allow investors or users to fund loans to various lenders in a process formally called “peer-to-peer” (P2P). Through this process, investors can benefit from better interest rates than when dealing with traditional bank investments.
In essence, the app gives you an opportunity to become the banker and bank as the investor without the banker. The most reputable peer lending apps include Lending Club Invest and its main rival, Prosper Invest.
Final Thoughts On Passive Money Making Apps
There are numerous passive money making apps designed for different income ventures. While some of these apps don’t require any action on your part, others may require some effort up front.
Some of these passive money making apps are free, while others may require you to spend some money to get started.