Multiple streams of passive income can mean the world to you if you plan on getting out of the clutches of the 9 to 5.
More time, more freedom… and control over your life. Who doesn’t want that?
The brutal fact is that most people have to continually work at traditional jobs for a major part of their lives.
While there’s nothing wrong with this reality, you can hasten your financial freedom date by cultivating various ways to make money that do not require a constant daily effort.
I previously wrote about 15 legit passive income ideas that pay well. This current post covers passive income apps you can use to make money over time in Canada and the United States.
What is Passive Income?
Passive income refers to money you earn that does not require ongoing effort.
Don’t get me wrong.
While there are some passive income strategies that are simply “set and go” from the start, many passive income opportunities require lots of work initially before they start generating income on a consistent and recurring basis.
Top Passive Income Apps in Canada in 2020
The best passive income apps will help you make money using your smartphone or computer.
From investing apps to cash back and side-business apps, there is an iOS or Android app you can use to generate residual income.
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 3x the rates being offered by traditional banks.
Wealthsimple Cash: In addition to a 0.90% rate, this account also offers free transactions, no monthly fees, chequing account capabilities, free ATM withdrawals and no FX fees (coming soon). Read complete review (plus $50 cash bonus offer).
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.
2. Automate Your Investments
Investing in the stock markets is a time-tested way to becoming wealthy. There are no easier ways to participate in the financial markets than to automate it using well-diversified low-cost ETFs (index funds) and an online investment manager.
Also known as robo-advisors, these online wealth managers take the guesswork out of your investments and set you up with a portfolio that matches your risk tolerance and investment objectives.
They manage everything so you can sleep well at night while paying lower fees than you would otherwise pay for the mutual funds at your bank.
Wealthsimple is Canada’s premier online wealth manager. They offer free financial advice automatic rebalancing, an award-winning app, a $50 cash bonus when you fund your account with at least $500, and more.
It is almost “set and forget.” You can read my Wealthsimple investing guide.
3. Earn Dividend Income
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 ($10 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. Get Paid To Shop
This semi-passive income strategy pays you for things you already do. The best cash back apps are mostly automated and you simply get some money back every time you shop.
Cash back apps won’t pay you a ton of money, however, the 1-5% or more that you get back will not hurt your wallet.
Five of the top cash back apps I use to generate some income are:
A. Drop: The Drop app automatically tracks your purchase when you pay using a linked debit or credit card and rewards you with points. You can redeem your points for hundreds of gift cards and merchandise.
B. Rakuten: Formerly known as Ebates, Rakuten is the most popular cash back app for purchases you make online. They are partnered with more than 750 stores in Canada and 2,000+ in the U.S.
C. Caddle: This last cash back app is just as good as the others. You earn real cash back for shopping in-store and online, watching video ads and taking 30-60 second surveys.
Sign up for Caddle and enter the promo code ENOCH48192 for a $1 bonus.
D. Ampli: Paymi is a newer cash back app and a must-have if you shop at Leon’s, Lowe’s, Burger King, Mark’s, SportChek and several others. Similar to Drop, cash back is earned automatically with this app.
E. Checkout 51: This app is available on iOS and Android devices and offers weekly cash back on groceries and other household purchases at any store.
5. Start a Blog
Honestly, starting a blog is a tough endeavour. However, if you are able to put in the work and get it going, you can easily earn thousands of dollars every month.
Your blog can cover any niche or subject of interest and you can easily start using the free WordPress software. A cheap and reliable web hosting like Bluehost or Siteground will cost you $3.95 per month.
For more information on how to start a blog, read my 6-step ultimate guide for building a money-making blog.
Your blog can make money from display advertising, product sales, affiliate marketing (more details below), membership fees, online courses and more.
The most popular bloggin platform, WordPress, is also available on smartphones so you can work while on the go.
6. Use Affiliate Marketing
If you have a blog or other online following e.g. Facebook, Instagram, Pinterest and Twitter, you can make money through affiliate marketing.
Basically, you promote other people’s products and services to your audience and earn a commission when they make a purchase. There are folks who make six-figure incomes every month from this gig.
If you’d like to get the nuts and bolts of how to use affiliate marketing, check out the Making Sense of Affiliate Marketing course.
Armed with your phone, there are so many ways you can earn income on the internet these days!
7. Start an Online Store
The idea of an online or physical store often makes people think about the WORK involved.
Yes, your online store will definitely require some effort when you are starting up, however, you can easily automate things.
Dropshipping and the internet have made it easy for you to sell products you don’t own or keep an inventory of. Potential customers visit your site, order products, pay, and the vendor ships them the product directly. You can also sell digital products.
Shopify offers an easy mobile-friendly e-commerce platform for everyone. Using their pre-made templates, you can have your store up and running in no time.
8. Rent Your Stuff
Sometimes, there’s just no need to re-invest the wheel. If you already have assets you are not using, consider monetizing them to generate passive income.
Airbnb: This app makes it easy to list an unused room in your home for rent or your entire home if you so wish. The company vets all potential renters and provides insurance coverage to keep your mind at peace.
This gig can easily make you thousands of dollars every year. Listing your home on Airbnb is free.
Turo: This car-sharing app allows you to rent out your car and it is often referred to as the “Airbnb of Cars.” Easily list your car for free and set your own price and availability.
Car owners earn 70% or more of the trip price and enjoy a free $2 million in liability insurance and physical damage protection.
List your car on Turo and earn an average of $600 per month. You can also read my complete Turo review.
How much money can you make?
How much passive income you can generate will depend on the strategy you deploy and in some cases, how much capital you invest initially.
An established blog may earn $50,000 per month while a fairly new blog may generate only $1,000 per month. A savings account will pay you interest based on the interest rate and your principal.
With multiple and diverse streams of income, you can rest assured that come rain or shine, your expenses are going to be paid for.
What are the best apps to make money?
There are tons of apps you can use to make and save money. I have written about some of them in the posts below:
For an exhaustive list of ways to make money, check out this list of 113 side hustles.
Are there any other passive income apps you are using and love? Leave them in the comments!