For years, personal finance gurus have been stressing the importance of having multiple sources of income. Relying on your job or business as your only source of income is risky. If you get laid off or fired or your business goes bankrupt, you may end up destitute.
Passive income is a great way to add to your income streams. It is also a key step to financial independence as it allows you to earn money without actively hustling for it.
Passive income is a goal for many people because they see it as a way out of the rat race. Early retirement has become a goal for most Millennials and Generation Z. A reliable passive income course that covers your expenses can allow you to live the life of your dreams anywhere in the world.
Keep reading for more information on the best passive income apps that you can use to earn extra cash to meet your financial goals.
What Exactly Is Passive Income?
Passive income is money earned without active and ongoing effort. It is an income avenue that allows you the time and energy to actively earn money while using other sources like employment. For those that want to retire early, passive income can help cut the number of years you have to stay employed.
Because of the name passive many people have the misconception that passive income does not require work. But this isn’t the entire truth. It requires a lot of work upfront to set up and some maintenance to keep the funds rolling in.
Think of a best-selling author. They make a lot of passive income from book sales but they usually spend months or even years writing the best-selling book. Additionally, they must do a lot of book signing tours and promotional events to bring the book to the public’s attention.
A successful passive income strategy is not a get-rich-quick scheme. Some of the traditional ways to earn passive income are interest from investment funds, rent from real estate properties and royalties from written music or books. But the internet and smartphone technology have created new sources of passive income such as blogs, videos, and games.
One of the best and newest ways to earn passive income is through mobile apps that you can access on your smartphone or computer. Keep reading for 5 great strategies to earn a great income from apps in 2021.
1. Salvage Money Using Money Saving Shopping Apps
Shopping apps make it easy for you to get the best prices whenever you make purchases. Every penny you save counts towards your financial goals so shopping apps are a great part of a passive income strategy.
Some apps compare prices for items you want to buy. Then they direct you to the physical or online store where you would get the best deal. Others offer you vouchers, coupons, or cashback deals on your purchases.
Gift Card Granny App is a great option if you give or receive a lot of gift cards. It is a gift card marketplace that allows you to buy or sell gift cards at less than their face value. Cashback offers on cards range anywhere from $0.50 to $5.00.
Just search for the gift card you want to buy and check how much cashback is on offer. Additionally, if you receive a gift card you don’t want, you can sell it on the app. You can also receive cashback for slightly less than the value of the card.
My Points App is one of the most popular shopping apps that you can download and start saving money on. It is free to sign up for it using just your email address. Once registered as a user, you will be added to a platform that you should use for all your online purchases.
Every dollar you spend gets you points on the platform. Your points can later be converted to gift cards to your favorite stores or changed into dollars through PayPal. The My Points App also saves you money by giving you access to hundreds of discounts on online retail stores.
2. Earn Extra Money With Gig Economy Apps
Mobile Apps have made it extremely easy to start a side hustle or business. This is commonly referred to as the gig economy. For instance, ride-sharing apps like Lyft and Uber have revolutionized the cab industry.
You save a chunk of change by using them rather than a regular taxi. It’s also possible to earn extra money by becoming a Lyft or Uber driver during your free time. Plenty of people are paying off debt and attained financial freedom through this method alone.
Real estate has always been one of the best ways to earn passive income but you can now get a part of this pie even if you are renting. Living Space Rental apps like Airbnb and Couchsurfer have exploded in recent years due to their usefulness and money earning potential. If you have a spare bedroom and your town has frequent visitors, you can rent it out like a hotel room and charge lucrative rates per night.
Depending on the demand and the location and state of your home you can earn anywhere from $10 to thousands of dollars each time someone rents your room or home. Additionally, if you own a rental property and don’t have long-term tenants you can rent it out to short-term visitors rather than allowing the property to stay idle.
3.Save, Invest and Earn Interest With Banking and Investment Apps
Saving and investing are the keys to financial freedom. Smartphone and internet technology have made it easy for anyone to get the best savings rates, buy bonds, and trade stocks.
When choosing savings and investment apps, assess your risk tolerance and choose apps that are aligned to your saving and investment strategy. You should also use different apps to diversify your risk. For instance, use one app for savings, another for stocks, another for bonds, etc.
Use Online Financial Services for High-Interest Savings Accounts
Traditional banks are notorious for giving extremely low-interest rates on savings accounts. But the internet has allowed many online banks to set up shop and provide competitive interest rates to savers.
These banks have mobile apps that you can use to track your savings and move funds from one account to another. This sometimes depends on the benefits and rates on offer. The apps also make it easier for you to buy investment vehicles such as shares, bonds, etc.
Capital One 360 is a great online banking app that pays high rates of interest on both savings and checking accounts. They also have low banking fees which makes your nest egg grow faster. If you hate the high transaction fees charged by traditional banks and lending institutions then download Cash App and start using it for your financial transactions online.
The app allows you to send and receive money from your linked bank account for free. Other than saving on transaction fees, you can increase your passive income by using the app to invest in fractional stocks as well as cryptocurrency. Cash App also has a refer and earn program whereby you can earn $5 for each new person you introduce to the app.
Peer to Peer Lending Apps
Another great way to earn high interest at relatively low risk is peer-to-peer lending. These are third-party apps that connect people that have surplus money with those that need loans to run a business or deal with an emergency. Examples of such apps include Prosper, Lending Club, and Funding Circle.
While the interest rates you can earn on lending apps are high, there is also a greater risk of loss as the loans are unsecured. Investors reduce their risk by lending small amounts to different borrowers. Additionally, you can check the credit ratings of borrowers and choose those with a higher likelihood of paying back your loan.
Investing is easier than ever with trading apps that make it easy for anyone to buy and sell stocks online. For instance, Robinhood is a great brokerage app that offers commission-free trading on its mobile app and website. It is so easy to use that it attracted millions of regular users who disrupted stock market norms in 2021.
To open an account, you only need a Social Security number and a US Address and you must have attained the age of 18. Owning stocks has long been the best way to become wealthy and Robinhood makes it easy to do so. This makes it one of the best apps to earn a passive income in 2021.
Coinbase app is another great investment app if you are interested in crypto trading. But if you are still new to investing then get your feet wet by using an app like Acorn which allows you to invest small amounts of money. Acorn requires you to make purchases using a debit card and then it rounds up your purchase amounts and invests the funds collected.
For instance, if you make a purchase of $98.20 at the grocery store, Acorn will deduct $1.80 from your account and send it to your investment account. Depending on your investment goals your funds will be put into high-risk or low-risk investments. You should have to make regular purchases using your credit or debit card to make money from this app.
4. Get Paid for Browsing With Survey Apps
You are already on the internet so why not earn money for browsing? Swagbucks is a money-making app that pays you to do things like surfing the web, downloading and playing games, referring friends to the app, etc. Each time you complete a task you get points equal to the task.
Once you accumulate enough points you can get a gift card from major retailers or convert your points to dollars on PayPal. 1900 Swagbucks points amount to approximately $25 on PayPal. Another great way to easily earn extra income is to fill in in surveys on mobile apps such as the Survey Junkie App.
5. Start a Side Business Selling Stuff With the Best Marketplace Apps
Make your spring cleaning a profitable activity by collecting all the items you are no longer using and selling them on Offerup. This is one of the leading marketplace apps for selling unwanted stuff.
All users get ratings making it easier to choose genuine buyers that won’t try to scam you. It also has safety features that verify users to reduce incidents of loss to buyers and sellers. All communication and transactions are done through the app to protect all parties involved.
The Offerup app is easy to use and a listing takes less than 30 seconds to create. So you can quickly earn money on items you want to sell. The app has listings for everything from clothes to electronics and furniture.
Satisfied customers will give you a 5-star rating which will increase your reputation ranking and make it easier for you to sell. You can make a lot of money on this app by selling items that are in high demand at fair prices. The best-sellers are clothes, household items, and furniture but you can sell almost anything and make a profit.
Mercari is another great app to start an online thrift store. If you have an eye for unique vintage clothing or preloved household items, then you can make a lot of money on this app. The model works best if you can find items of value at a cheap price and then sell them at their actual value.
Make Extra Money Using Passive Income Apps
Passive income is a great way to achieve financial security and stability. With multiple sources of income, you are more likely to increase your earning potential. Passive income apps are a necessary part of any passive income strategy in 2021.
Most people have a smartphone and use mobile apps for shopping, investing and entertainment. To learn more about the best ways to make money from your phone, check out this link.