Last updated Jul. 17, 2024 by Peter Jakes
In an evolving digital economy, generating passive income has become more attainable than ever before. From investment apps to cashback rewards, numerous platforms offer ways to earn money with minimal active effort. Here are the top 19 passive income apps to consider in 2023.
1. Acorns
Acorns round up your daily purchases and invests the spare change. You link your credit or debit card, and whenever you make a purchase, Acorns rounds the amount to the nearest dollar and invests the difference in a diversified portfolio. It’s an easy way to invest money without even realizing it.
2. Robinhood
Robinhood is a commission-free trading app that allows users to buy and sell stocks, options, ETFs, and cryptocurrencies. Its easy-to-use interface and zero commission policy make it a popular choice for beginner investors looking to earn passive income through dividends and capital gains.
3. Stash
Similar to Acorns, Stash is an investment platform that simplifies the investing process by allowing users to start with as little as $5. Stash offers personalized recommendations and educational resources to help you build a diversified portfolio.
4. Fundrise
Fundrise provides access to real estate investments previously only available to wealthy individuals. By pooling money from multiple investors, Fundrise buys commercial properties and provides dividends to its investors. It offers a straightforward way to earn passive income from real estate without needing to own property directly.
5. Drop
Drop is a shopping rewards app that offers points for making purchases through the app. These points can be redeemed for gift cards to popular retailers. By linking your credit or debit card, you automatically earn points on qualifying purchases.
6. Honeygain
Honeygain allows you to earn money by sharing your internet connection. The app uses your data to help businesses and researchers collect information. You earn passive income based on the amount of data you share.
7. Swagbucks
Swagbucks offers various ways to earn rewards, including watching videos, taking surveys, and shopping online. You can redeem your earnings for gift cards or cash through PayPal. While not entirely passive, it’s a minimal-effort way to generate extra income.
8. Ibotta
Ibotta is a cashback app that offers rewards for grocery shopping and other purchases. By scanning your receipts or linking loyalty accounts, you can earn cashback on qualifying purchases. It’s an easy way to get a little money back on everyday items.
9. M1 Finance
M1 Finance combines automated investing with highly customizable portfolios. Users can create their own "pies" or use expert-created ones, and the app takes care of the rest. It’s designed to simplify long-term investing by automating the rebalancing of your portfolio.
10. Airbnb
Renting out a spare room, guesthouse, or even your entire home on Airbnb can generate significant passive income. While some initial effort is required to set up your listing and ensure it’s attractive to potential renters, once established, it can be an excellent source of ongoing income.
11. PeerStreet
PeerStreet is a real estate lending platform that allows you to invest in private real estate loans. By diversifying across multiple loans, you can earn passive income from interest payments. This is a great option for those interested in real estate but hesitant to buy physical properties.
12. Vanguard
Vanguard is known for its low-cost index funds and ETFs. While not an app in the traditional sense, Vanguard’s mobile platform allows for easy management of your investments. By investing in broad-market index funds, you can earn passive income through dividends and capital appreciation.
13. Betterment
Betterment is a robo-advisor that aims to make investing simple and efficient. It offers automated investing based on your financial goals and risk tolerance. With features like tax-loss harvesting and rebalancing, Betterment can help grow your wealth with minimal effort.
14. Tally
Tally is a credit card consolidation app designed to help you pay down debt more efficiently. By managing your payments, Tally can save you money on interest charges, indirectly contributing to your financial health and future passive income opportunities.
15. Mintos
Mintos is a peer-to-peer lending platform that connects investors with borrowers. You can earn passive income by lending money to borrowers and receiving interest payments in return. The platform offers various loans, allowing you to diversify your investments and manage your risk.
16. Rakuten
Rakuten, formerly known as Ebates, offers cashback on purchases made through its platform. Shopping through Rakuten earns you a percentage of your spend back in the form of cash or gift cards. It’s a simple way to earn passive income while shopping online.
17. Public.com
Public.com combines social media with investing, allowing users to buy stocks and ETFs while interacting with other investors. Its commission-free trades make it easy to invest for beginners and seasoned investors alike, with the potential for earning dividends and capital gains.
18. Chime
Chime is an online bank that offers a high-yield savings account with attractive interest rates. By transferring money into your Chime savings account, you can earn interest over time, providing a steady stream of passive income.
19. Pinecone Research
While more active than some other options, Pinecone Research pays for your opinions. Completing surveys and being part of product testing can earn you a steady side income. It’s not entirely passive but requires minimal effort for consistent rewards.
✓ Short Answer
These apps offer various ways to earn passive income, from investing spare change to getting cashback on purchases. By leveraging these platforms, you can generate extra income with minimal effort.
Q: What is passive income?
A: Passive income is money earned with minimal active effort. It usually involves investments that yield returns over time, such as dividends from stocks or earnings from rental properties.
Q: How do passive income apps work?
A: Passive income apps typically automate processes like investing spare change, managing rental properties, or earning cashback on purchases. This automation allows you to earn money without constant active involvement.
Q: Are passive income apps safe to use?
A: Most passive income apps are safe to use, particularly well-known ones with positive user reviews. However, it’s crucial to do your own research and ensure the app has robust security measures and transparent policies.
Q: Do I need a lot of money to start earning passive income?
A: Many passive income apps allow you to start with small amounts of money. Apps like Acorns and Stash let you get started with just a few dollars, making them accessible for beginners.
Q: Can I rely on passive income apps for my primary income?
A: While it’s possible to earn significant passive income, most people use these apps to supplement their primary income. Diversifying your income streams is generally a safer financial strategy.
Q: How do I choose the best passive income app for me?
A: Consider your financial goals, investment preferences, and risk tolerance. Research different apps and read user reviews to ensure the platform aligns with your needs. Start with one or two apps to get a feel for how they work before diversifying further.
