There’s a good chance that you have paid an overdraft fee at least once in your life. American banks collect approximately $15 billion in overdraft fees each year which is equivalent to every single person in the United States paying out $46 per year in overdraft fees!

The average for each overdraft is $24, with some banks charging as much as $34 each time you overdraft.

What Can You Do About It?

The best thing you can do is to create a cash flow plan for your life and money. Instead of waiting for your account to go negative only to pay out expensive overdraft fees, you would actually set up a plan for your money before you actually spend any of it.

We have a free tools and resources for you to set up your own cash flow plan here if you decide to go that route.

You can also make the wise decision to switch to a bank that charges less or even better; doesn’t charge at all when it comes to hefty overdraft fees.

Overdraft Fees Are Confusing On Purpose

There are many different fees associated with overdraft fees.

Each bank and credit union has different policies on how much they charge per overdraft and how often. Some banks may charge the fee up to six times per day, which means you could owe up to $144 in bank fees just to get your account balance back to zero.

And don’t forget, only the first portion of your next bank deposit will reimburse the overdraft fee and your account shortage.

Listed below are all the well known and not-so-well-known types of of overdraft fees and how they work.

Overdraft Fee

The bank charges an overdraft fee when you withdraw more money than the current account balance. The average bank overdraft fee is $24, but some banks won’t charge a fee if the overdraft is less than $5.

Extended Overdraft Fees

An extended overdraft fee is a second overdraft fee that banks can charge if you don’t pay the fee and overdrawn amount within a predetermined amount of time, usually within five business days. Some banks will refer to this as a “continuous overdraft fee”.

This fee is becoming less common but many banks still charge them.

Non-Sufficient Funds Fee (NSF)

You get charged this fee when there isn’t enough money in your account to cash a check that you wrote or scheduled on online bill pay, you’re charged a non-sufficient funds (NSF) fee. This fee is usually higher than the overdraft fee and cost around $30 to $40 per returned check.

With this fee, your bank and the depositor’s bank can both charge the non-sufficient funds fee.

Overdraft Protection Fee

If you have a savings account or credit card linked to your checking account, the bank may try shifting the cash shortage from another account to complete the transaction. If there’s enough money, you’re charged an overdraft protection fee which is usually $10 per transaction.

When the balance shortage is charged to your linked credit card, you will also pay the cash advance interest rate until you repay the difference.

Monthly Service Fee

You might consider this an indirect overdraft fee. Some banks don’t charge you a monthly service fee if you maintain a minimum daily balance, like $500. If your daily balance goes below $500 at any point in the monthly statement period, you’re charged a monthly service fee.

You still have plenty of money to cover the transaction and won’t be charged an actual overdraft fee, but the monthly service fee can still cost $10 on average.

The Best Banks For Avoiding Overdraft Fees

To avoid overdraft fees, your best bet will be banking with an online bank. Because their operating expenses are significantly lower than traditional banks, they don’t rely on overdraft fees as a source of revenue.

If a traditional brick-and-mortar bank is the only realistic option for your banking needs, you can also compare the fees from your local bank options. Keep in mind that credit unions are also an affordable alternative if you don’t need a bank with a national presence.

The following online and traditional banks have the best overdraft fee policies. If you don’t need the capability to handwrite checks or need in-person concierge services, online banks are an excellent option.

As you will see, the online banks with the lowest overdraft fees are online banks that don’t offer a paper checkbook. Some online banks still provide a paper checkbook for you to write handwritten checks, but your overdraft fees will usually be higher.

If you’re serious about switching banks to avoid overdraft fees, you need to avoid the traditional “big name” banks with a national presence:

• Bank of America
• Chase
• Citibank
• Well Fargo

Even if you can get waived overdraft fees, you may have to pay a monthly account fee or maintain a high account balance. Either of these two requirements can be a drag on your finances and building your net worth.

1. Chime

Overdraft Fee: $0

You won’t pay any bank fees with Chime either because your debit card transactions will only be withdrawn if there are sufficient account funds. You can also send checks for free with Chime’s electronic checkbook.

Another cool reason to consider Chime is that you can get your paycheck two days earlier!

2. Axos Bank

Overdraft Fee: $0 on select checking accounts

You won’t pay an overdraft fee on the following Axos Bank checking accounts:

• Essential Checking
• Rewards Checking

It’s also possible to get unlimited ATM fee reimbursements and earning interest on your payments.

3. Simple

Overdraft Fee: $0

Simple is an online-only bank that doesn’t charge any overdraft fees or any fees for that matter. The reason why is you only get a debit card and not a checkbook. For those times you need to write a check, you can enroll in their free bill pay service or request a cashier’s check.

If there isn’t enough money to complete a debit card purchase or ATM withdrawal, the transaction won’t complete. To help you prevent a rejected card transaction, Simple also offers these free tools:

• Trackable spending
• Savings goals
• Safe-to-Spend

With Simple’s Safe-to-Spend feature, you can easily find out how much free cash you have to spend. Simple subtracts your current account balance from your savings goals to ensure you don’t overspend.

You may also consider banking with Simple because they partner with BBVA Compass. Your deposits will earn 0.01% and you can make fee-free withdrawals from any BBVA ATM or any Allpoint ATM network.

4. Varo Bank

Overdraft Fee: $0

When you open a Varo bank account you will get access to an online checking account with no monthly fees or minimum balance. You also don’t have to worry about overdraft fees with Varo and they have a savings account with a savings rate of 1.82% – 2.80%; among one of the highest savings yields I have seen.

5. KeyBank

Overdraft Fee: $0

With the KeyBank Hassle-Free Account, you won’t pay an overdraft fee or non-sufficient funds fee, you still might be charged a fee by the recipient’s bank. KeyBank will automatically decline al insufficient ATM and debit transactions and not charge a fee. You can’t write paper checks, so you only have to make sure your electronic bill pay checks have sufficient funds when you issue them.

6. Bank5 Connect

Overdraft Fee: $15

Overdraft Protection: FREE

Bank5 Connect offers some of the most affordable overdraft fees for an online bank. You’ll only pay $15 per overdraft transaction and overdraft protection is free when you link a savings account. You will also get the first $15 in monthly ATM fees reimbursed and your deposit earns interest when your account balance is at least $100.

7. Navy Federal Credit Union

Overdraft Fee: $20 on withdrawals above $15

As the nation’s largest credit union, Navy Federal Credit Union assess a $20 overdraft fee on overdrafts greater than $15. You can transfer between your Navy Federal accounts for free. Certain checking accounts even qualify for ATM fee rebates.

8. CIT Bank

Overdraft Fee: $25

When you open up a high-yield savings account with CIT Bank, you can make six monthly withdrawals and earn 1.55% interest on your entire account balance. If you use your debit card sparingly and want to earn a high interest rate, a money market account can be a good alternative to a checking account.

9. Ally Bank

Overdraft Fee: $25

Overdraft Protection: FREE

Ally Bank charges a $25 overdraft fee once per day. However, you can sign up for free overdraft protection and Ally will transfer money in $100 increments from your Ally Savings account to your checking account. Since this is a high-yield savings account with six free monthly transactions, each transfer counts towards your monthly limit.

10. Charles Schwab Bank

Overdraft Fee: Up to $25

Overdraft Protection: FREE from linked brokerage account

If you want to bank and invest at the same place, Charles Schwab Bank offers a few unique fee-free checking account benefits:

• Overdraft transfers
• Unlimited ATM withdrawals
• Stop payments

When there isn’t enough money to cover an overdrawn balance on written checks, you will pay $25 per returned check. Schwab offers free overdraft protection and will transfer the necessary funds from your Schwab savings or brokerage account.

11. Nationwide Bank

Overdraft Fee: $25

Overdraft Protection: FREE from linked brokerage account

Nationwide Bank offers an interest-bearing online checking account with $25 overdraft fees. Overdraft protection transfers from your Nationwide savings and money market accounts are free.

You can also earn additional premier member benefits when you own another Nationwide banking or insurance products. Yes, this is the same Nationwide that you see auto insurance tv commercials for.

12. USAA

Overdraft Fee: $25 with overdraw greater than $5

Overdraft Protection: FREE

USAA offers two different checking accounts with a $25 overdraft fee if overdraw by at least $5. The overdraft transfer protection is free when transferring money from your other USAA accounts, but you will pay cash advance interest on any credit card transfers in $100 increments.

13. First National Bank

Overdraft Fee: $28 (on overdraft greater than $20)

First National Bank waives overdraft fees when the shortage is $20 or less. If you transfer money from another account, you will pay $5 per transfer.

14. TIAA Bank

Overdraft Fee: $30

You won’t pay an overdraft fees on ATM or debit transactions, but you can still be charged a non-sufficient funds fee for bad checks. You can save additional money with unlimited ATM withdrawals. The one downside to having an TIAA Bank checking account is that you must make a minimum initial deposit of $5,000 to open an account.

15. Discover Bank

Overdraft Fee: $30

Overdraft Protection: FREE

A Discover Bank Cashback Checking account offers free overdraft protection if you need to transfer funds from a linked account. You will pay $30 for an overdraft fee if you have insufficient funds. You can also earn 1% back on the first $3,000 monthly debit card purchases too.

16. Capital One 360 Checking

Overdraft Fee: Up to $35 (24 hour grace period)

Overdraft Protection: FREE

Capital One offers four different overdraft fee options with their 360 Checking platform:

• Auto-decline ($0 fee)
• Free savings transfer
• Overdraft line of credit
• Next day grace

With the “Next Day Grace” option, you have one full business day to cover the overdrawn amount until you’re charged the $35 overdraft fee. If you don’t want to risk paying an overdraft fee ever again, choose the auto-decline protection option so your debit card transactions are declined when you have insufficient funds.

17. HSBC

Overdraft Fee: Up to $35

HSBC only charges the $35 fee on checks, withdrawals, and electronic funds transfers when the balance is overdrawn by at least $10 at the end of the business day. ATM withdrawals and debit transactions will be automatically declined. To avoid the $3 monthly account charge, you might consider applying for an HSBC Choice Checking account.

18. BB&T Bank

Overdraft fee: $36

Overdraft Protection: $12.50

If you typically overdraft by $5 or less, BB&T will waive the $36 overdraft fee. If you opt-in to the overdraft protection services, each transfer costs $12.50.

19. BBVA Compass

Overdraft Fee: $38 ($32 in California) when the account is overdrawn by more than $1

BBVA Compass offers a free checking account that gives you a physical checkbook, access to local branches, and free access to 39,000 ATMs. You will pay a $12 fee ($7 in California) if you transfer money from another BBVA account and $38 there are insufficient funds. You can also opt-out of these services at any time.

Secrets on Avoiding Overdraft Fees

With minimal effort, there are several different ways you can avoid overdraft fees.

Receive Account Alerts from Trim

Trim is a free service that monitors your spending and renegotiates your monthly bills when a lower rate is available.

You can link your bank accounts to Trim and receive various alerts including:

• Large transactions
• Balance updates
• Minimum balance alerts

These alerts let you know if you’re close to getting charged an overdraft fee on your next purchase. Think of these three alerts as your “radar” to prevent overdraft fees. You can customize the alerts to reflect your spending habits.

Although Trim lets you know when your bank charges an overdraft fee, you should set a minimum account balance alert.

For example, Trim sends me an alert when my checking account balance is less than $200. You can also set an alert when your account balance reaches $0, but it might be too late by then!

Create a Monthly Plan for Your Money

The old saying what gets measured gets managed has a lot of truth to it. You and I would never take a drive across the country without a fuel gauge, but this is exactly what most of us do with our money each month.

Over 70% of people are living paycheck-to-paycheck, which means more than 70% of people do not have a plan for the money in their lives. A cash flow plan will allow you to stop guessing and actually set up a plan of action for every dollar in your life.

You can set up your own cash flow plan in 15 minutes or less here (free).

Balance Your Checkbook Regularly

Maybe you don’t write checks on a regular basis, but you have a ledger.

Write your check and debit transactions in the same ledger. Once a week, compare the written transactions to the processed transactions.

There might be a discrepancy between your ledger and the current available balance if somebody hasn’t cashed their check yet. Because you know you still have cash hanging out that’s technically been spent already, you know there’s not as much money in your account as your bank thinks.

In most cases, you have probably overdrafted your account by $20 or less. If you had balanced your checkbook on a regular basis, would you still have paid an overdraft fee?

When balancing your checkbook ledger, here are a few transactions to include in your account:

• Handwritten checks
• Debit card transactions
• Automated bill payments
• Direct deposits from your employer

Your bank might automatically withdraw any payments you make in their Bill Pay program, even if the company hasn’t deposited the check yet. If so, this makes your task of balancing the ledger a lot easier.

Make Deposits Before Withdrawals

Before you make an account withdrawal, make your deposits first. If you’re waiting for your employer to deposit your paycheck, don’t make a purchase until it shows deposited in your account.

Banks charge overdraft fees in real-time, not at the end of the day. Waiting a few minutes can literally mean the difference between paying an overdraft fee or not.

Build a Financial Cushion in Your Bank Account

The few times my wife and I paid an overdraft fee were when we didn’t create a cash flow plan. Usually for our family, there would always be enough money in our account during a normal month, however there were those few of those expensive months where life happened and we would pay out few mistake dollars in overdraft fees.

This is usually the case for most people. It seems like you have enough money to book your summer vacation or buy a new sofa, but you forget that your monthly mortgage payment hasn’t been withdrawn yet. Hey, it happens to the best of us…in fact it happens to to the tune of $15 billion per year.

Instead of spending blindly, sit down and make a budget. List your regular monthly expenses and compare the total amount to your monthly income. Trimming any unnecessary spending where possible and use those savings to build a bank account safety cushion like $100.

If your balance dips into your safety balance, you won’t be charged an overdraft fee but make sure you replenish the balance as soon as possible.

Opt-Out of Overdraft Protection

Each bank has different overdraft protection policies. For some banks, overdraft protection is completely free as long as there’s enough money in your linked accounts and you don’t exceed daily transfer limits. Other banks let you link your bank accounts for free, but you are charged an overdraft protection fee for each transfer.

You will need to check the overdraft protection policies of your current bank. By not enrolling in overdraft protection, your debit card transactions will not process when there isn’t enough money in the account to cover the total purchase amount. While you will be temporarily embarrassed, it’s better than paying a fee.

Canceling overdraft protection doesn’t mean you can avoid fees for writing a bad check. You can still be charged a returned check or non-sufficient funds fee.

Asking Your Bank to Waive the Overdraft Fees

Depending on your standing with the bank, you might be able to waive the overdraft fee. You will have the best chance of getting the fee waived if you mention these facts:

• You rarely or never overdraft
• You’re a loyal long-time customer
• Ask the bank how to avoid fees in the future

During the conversation be polite, but don’t be afraid to say no to services that you don’t want to sign up for. If the first customer service representative isn’t helpful, you can try calling again and talking to a different representative.

A phone call won’t guarantee that your overdraft fee will be waived, but it can’t hurt. If the fee isn’t waived, the only additional cost is your time for making the call.

Remember, you always attract more bees with honey than with vinegar.

Switch to a Bank That Doesn’t Charge Overdraft Fees

As the list explains above, not all banks are the same and some are more lenient than others when it comes to overdraft fee policy. It’s also a great idea to look for any bank promotions which may add extra money to your pocket if you’re making the switch anyway.

FAQs

Do Big Banks Ever Waive Overdraft Fees?

Some big banks waive overdraft fees if you own a special account or have a large account balance. The one condition to owning a special account–usually called a SafeChecking or Hassle-Free account–is that you usually have to pay a monthly account fee. If you’re not paying a monthly account fee right now, changing your spending habits can help you avoid overdraft fees without paying a monthly account fee.

What is Free Overdraft Protection?

Since the Dodd-Frank Act was passed in 2010, bank customers have had to opt-in or opt-out of overdraft protection coverage. If you opt-out, your bank will automatically decline any debit or ATM transactions that will overdraw your account.

By opting-in to overdraft protection services, you may pay an account transfer fee. Some banks and credit unions offer this service completely free, but many banks still charge a fee.

This fee is still cheaper than an overdraft fee if you want the peace of mind knowing that your debit transaction won’t be declined or you don’t want a check to bounce and be charged a non-sufficient funds charge.

What’s the Best Way to Avoid Overdraft Fees?

The best way to avoid overdraft fees is a two-part answer:

• Make a budget and keep a reserve balance in your checking account
• Use a bank with low overdraft fees and no monthly account fees

Overdraft fees are an easy way for banks to make money because people don’t take the time to properly manage their finances. We’re all prone to make a mistake from time to time, but being proactive about managing your money and using a low-fee bank is the best solution.

How Soon Do Banks Charge Overdraft Fees?

Most banks charge an overdraft fee immediately. And, they might charge the fee up to six times per day. A few banks give you until the end of the current business day to make a deposit to cover the shortage before they charge the fee, but this is the exception to the rule.

However, they may only charge the fee you overdraft by at least $1. Some banks may let you overdraft up to $20 before you’re charged the fee.

Summary

There are a few measures you can take to avoid overdraft fees regardless of where you bank. Switching to a bank that has a lenient overdraft policy can also help you save money in overdraft fees and other common bank fees.

I’m going to let you in on one secret to financial success. It’s earning passive income. That is, making money while you sleep, taking a vacation, or even calling in sick. These passive income ideas will allow you to literally make money 24/7.

“If you don’t find a way to make money while you sleep, you will work until the day you die.”

-Warren Buffet

Chris Peach, the creator of this blog, first learned about blogging when looking for ways to earn passive income. Now Peach generates over $10,000 per month in passive income from this blog and his other online businesses.

I myself also earn passive income, but in a much different way than Peach. Instead, I generate passive income through investing in individual stocks, real estate, and many of the other ways listed below.

The great thing about passive income is there are so many different ways to earn it. In fact, I am going to share over 40 ways with you in this post.

The Best Passive Income Ideas Right Now

There are literally hundreds of ways to make passive income, but I narrowed it down to the my top 40. If I thought something was far-fetched or really shady, I did not include them in this list.

Here are our the best ways to earn passive income, with my favorites mentioned first.

1. Real Estate Crowdfunding

• Medium Challenge
• Medium Reward

One of the most exciting options is real estate crowdfunding. One of the best places to get started is with Fundrise.

Fundrise is one of the pioneers in crowdfunded real estate. With their minimum investment of $500, you can start earning passive income through their different real estate projects.

Another great option for crowdfunded real estate is through Rich Uncles.

Rich Uncles starts at just $5 to invest in a real estate investment trust (REIT) for student housing. They also have many other investment options in real estate, but they do offer the lowest barrier of entry that we have seen.

If you are looking for more options and lower fees in real estate investing, I highly recommend Realty Mogul.

While Realty Mogul is one of the best places for investing in real estate they do require a $1,000 initial investment and you must be an accredited investor to invest in most of their products.

Definition: Accredited investors have an annual income of $200,000 (filing single) or $300,000 (filing married) or have a $1 million net worth excluding your primary residence. If you meet this mark, you are considered an accredited investor.

Real Estate: Debt vs. Equity Investments

With real estate crowdfunding, you either invest in debt or equity projects.

Debt investments put you in the shoes of the mortgage lender. You lend money to the property owner and they pay you back with monthly dividends. This option is safer than equity investing, but your potential income is less

Equity investments are like investing in stocks. You own a small stake in the project and you make your money when the property sells for a profit. So you might not make a lot of income in the first two or three years, but you can earn more in subsequent years as property values rise.

Although you can still earn more being an actual landlord, crowdfunding lets you invest in a market that would be off-limits otherwise.

Which platform you choose depends on whether you’re an accredited investor or not.

Fundrise – $500 Min Investment

Accredited investor: No

Minimum investment: $500

If you’re a non-accredited investor, Fundrise is one of the first places to look. This is one of the few crowdfunding platforms that are open to residents of all 50 states. And, you only need $500 to make your first investment into a Starter Portfolio.

Fundrise invests your money into debt and equity projects across the United States. If you pick their Starter Portfolio, they divide your income into debt and equity investments. You will earn regular dividends and profits from property sales.

With an account balance higher than $1,000, you can choose an advanced plan. These plans let you focus more on debt investments or equity investments.

See More: Fundrise Review – Crowdfund Real Estate for Non-Accredited Investors

Rich Uncles – $5 Minimum Investment

Accredited Investor: No

Minimum Investment: $5

Rich Uncles is another crowdfunding platform which gives you two different investing options. One REIT is for commercial property and the other is student housing.

The NNN Commercial REIT is only available to investors living in select states. If you only want a REIT that owns commercial property, take a look at this option.

Their Student Housing REIT is open to all U.S. residents and even foreign investors. This REIT invests in student dorms on large NCAA Division I campuses. It also has a low initial investment minimum of $5.

Definition: REIT stands for real estate investment trust. These are companies that own or finance income-producing real estate and trade on major stock exchanges.

Realty Mogul – Minimum Investment $1,000

Accredited Investor: Yes**

Minimum Investment: $1,000

The Realty Mogul platform is for accredited investors only. If you want to handpick which projects you invest in, come here.

Their investment options include multi-family residential, office buildings, industrial sites, self-storage, retail, medical buildings and hospitality establishments.

**They do offer two MogulREITs where you don’t have to be an accredited investor

Investing in Stocks, Bonds and ETFs

Investing in stocks, bonds and ETFs are probably one of the most common ways to earn passive income. There are two different ways to earn passive income with stocks: Dividends and Appreciation.

The best place get started is with M1 Finance. With M1 Finance, you can trade most U.S.-listed stocks and ETFs for free.

There are two ways you earn passive income through investing in stocks, bonds and ETFs: dividends and asset appreciation.

Earning Dividends

Dividend-paying stocks pay a dividend at least once a year. You can think of it as a “paycheck” from the company where the shareholders own stock.

A great way to further increase your passive income is to reinvest the stock dividends to buy more shares of stock. This is compound interest where you “earn interest on interest” which also means your money is making money for you.

Also, when you reinvest you dividends, you begin earning even dividends on each dividend you reinvest. And, you earn more stock shares which also means you can earn more profit from asset appreciation. Now you can see why Albert Einstein labeled compound interest the 8th wonder of the world.

Asset Appreciation

Asset appreciation falls under the category of bigger risk, bigger reward.

After all, no investment is guaranteed to make money, which means it’s also possible to lose money. However, when you do pick the right stocks, appreciation can pay out a lot of money.

Here’s an example to help illustrate the picture.

Let’s say you buy a stock at $50 a share. If the share price increases from $50 to $100, you will make $50 profit for each share you sell. For an initial $1,000 investment, that’s a $1,000 profit if you sell all your shares. With this strategy, you don’t reap the profit until you sell your shares.

Bonus – If the stock or ETF also happens to pay dividends, you also are earning steady passive income through the dividend payouts.

2. Index Funds

• Medium Challenge
• Medium Rewards

Index funds exemplify the motto, “If you can’t beat them, join them.”

Index fund investors usually have better investment returns than many professional investors. This is partially because they adopt a passive investing strategy of trying to match the broad market performance.

When you only try to match market performance instead of trying to beat the benchmark, you have fewer investing fees because you buy and sell shares less often.

When you still have to invest your first $1,000, index funds are a great starting point. With a single investment, you own partial shares of many companies. And, index funds require minimal research and have the lowest fund fees. When you buy in-house index ETFs or mutual funds, you won’t pay trade commissions either.

Minimal fees mean more of your money invests in the market instead of making your broker rich.

You don’t need any skill to invest in index funds. The minimum investment for an index ETF is the price of a single share. If a share costs $50, you need $50 to buy each share.

While it’s easy to invest in index funds, there’s still some risk. This is because the stock market can be volatile at times. While you may have short-term dips, the historic annual return of the S&P 500 is 7%. Long-term, your index fund holdings generate passive income from dividends and share price appreciation.

By investing in index funds, you track the performance of the fund’s benchmark index. For example, an S&P 500 index fund tracks the performance of the S&P 500. If the index rises, you make money. If the index drops in value, your holding value drops the same amount. And, you earn dividends from the dividend-paying companies within the index too.

As you can see above, the Vanguard S&P Index ETF (Ticker Symbol: VOO) has a nearly identical performance to the actual S&P 500 Index. One reason why index funds slightly underperform the market is fund expenses. The annual fund fee for VOO is 0.04%. That’s $4 for every $1,000 you invest.

There are index funds for the major U.S. market indices and also for foreign markets. Although each index fund instantly diversifies your investment as most funds hold between 100 and 3,600 different companies, you should pick index funds that invest in differently-sized companies to diversify your portfolio further.

For example, the S&P 500 is the 500 largest companies trading on the U.S. stock market. These companies are usually less risky and produce steady returns. But, you might have minimal upside growth potential. Small cap index funds invest in smaller companies with more growth potential but are riskier.

3. Individual Stocks and Bonds

• High Challenge
• High Reward

Investing in individual stocks provides the highest income potential. But, single stocks are riskier than index funds and sector ETFs. When you invest $1,000 in an index fund, you own tiny pieces of 500 different companies. But, if you invest $1,000 in Microsoft, you only own shares of Microsoft.

Since the 1990s, Microsoft has outperformed the S&P 500. But, if you bought shares of Microsoft at the height of the “Dot Com Bubble” in December 1999, it took until November 2016 (17 years if you’re doing the math) to “break even.” It only took the S&P 500 eight years to rebound.

If the company you invest in outperforms index funds, you look smart. But, not every company performs better than the broad index. If this is the case, your investment might actually lose money if the share price drops below your purchase price and never rebounds.

Because you can’t predict how the market will react to a single company’s performance, follow these rules:

• Consider investing in individual stocks after you own a basket of diversified index funds
• Never let one stock position exceed 5% of your total portfolio value
• Own between 10 and 20 individual stocks (you can add these positions as funds allow)

When investing in individual stocks, asset allocation is very important. Never letting a single position exceed 5% of your portfolio minimizes your portfolio risk. If a stock’s share price goes to zero, you only lost 5% of your total portfolio value instead of 50% if half of your money goes into one stock.

Consider Blue Chip Stocks That Pay Dividends

If you don’t know where to start with investing in individual stocks, look at blue-chip companies. These are long-standing companies with a history of steady returns. It’s not like investing in Amazon in 1999 when share prices were only $70 and they’re worth $1,500 each today. But, you should experience minimal volatility and regular dividend payouts.

You might consider investing in dividend aristocrats. These are companies that have increased their dividends payouts each year for at least 25 years. Most of your passive income might come from dividends, but you can enjoy rising share prices too.

Investing Tip: There are so many great places to invest online, but I recommend M1Finance because they don’t charge any fees, they don’t charge commissions and there are no minimum deposits to open an account.

Hold Real Estate Stocks Too

Another small piece of your portfolio can be real estate stocks and REITs (real estate investment trusts). This is different than crowdfunded real estate we mentioned earlier.

You can invest in public companies that hold different types of real estate properties. For example, you can invest in niches you might not think about like public storage, cell phone towers, and billboard advertising companies.

Or, you can invest in the traditional real estate sectors like commercial real estate, multifamily apartments, and health care facilities.

If you’re passive income-focused, consider investing in REITs over non-REIT real estate stocks. Most real estate stocks are REITs so this is easier than you think.

This is because REITs are required to distribute 90% of their taxable income to shareholders. That means you receive regular dividends. A REIT can be an individual company. Or, you can also buy a sector ETF or REIT index fund too.

REITs tend to perform well when their real estate sector is healthy. Also, low or stable interest rates help too.

The Best Places to Invest in Stocks

If you already have an online broker, you can trade individual stocks plus ETFs and mutual funds. But, you might be able to avoid broker fees when you use these platforms too.

Remember, the less you pay in trading fees, the more money you have to invest and earn passive income.

M1 Finance – Best for DIY

DIY investors should check out M1 Finance.

You can trade most U.S.-listed stocks and ETFs for free. This is a perfect way to buy index ETFs and your favorite individual stocks in the same portfolio.

I like M1 because I can buy partial shares of stocks for free. If you have $500 to invest and want to buy Amazon for $1,500 a share, you own one-third of a single share. With regular online brokers, you must have the full amount to buy a whole share.

Also, not having to pay $4.95 for each company stock or ETF you buy each trade also helps you save a small fortune.

Betterment – Best For Ease of Use

Many people are hesitant to invest because they don’t know what to invest in.

Betterment handles those difficult investment decisions for you. Depending on your age and investing goals, Betterment invests your cash into a mixture of stock and bond ETFs.

As you get older, Betterment rebalances your portfolio to hold more bonds. Bonds have less income potential, but they’re also less volatile. And, they pay steady dividends that you can use in retirement.

For instance, Betterment might invest in 80% stocks when your 30 and only 60% stocks in your 50s.

You only need $1 to make your first investment with Betterment. They offer IRAs and taxable accounts so you can keep all your investments here.

Learn more about Betterment’s managed portfolios here.

Blooom – Best For Your 401k

If you have a 401k, you should be using Blooom.

The number one killer of your nest egg is hidden fees and Blooom created a way to check your fees and then pick the best funds to optimize your passive income while keeping fees to a minimum. In fact, the fees are freakishly low.

Blooom charges a flat fee of $10/month to manage your nest egg. Compare that to the average management fee of 1%, and you’re saving over $800/year in fees on a $100k 401k balance.

You also have access to a financial professional to answer your various investing questions. You can see the full Blooom review here.

Acorns – Invest Your Spare Change

You don’t have to invest large sums of money at once to earn passive income. Acorns makes it possible to invest small sums of money. They will round up your shopping purchases and invests the difference in index ETFs.

You can invest your spare change with an IRA or a taxable brokerage account. The best option depends on how soon you plan on touching your investments.

See more about Acorns with our Acorns App review to learn more about micro-investing.

Stockpile – Help Your Child Invest

You might like Stockpile as a way to help your child start investing. Adults and children can buy partial stock shares for 99 cents a trade.

Stockpile offers 1,000 of the largest stocks and ETFs, including every S&P 500 stock. So, your child can invest in common household names like Nike, Amazon, and Hershey.

If you want to invest in index ETFs, use a regular broker like Vanguard or Fidelity and pay zero trade fees. But, Stockpile is a cost-effective way to buy stocks. Most brokers charge $4.95 each time you buy or sell stock. With Stockpile, you save $4. This savings makes it possible to invest small amounts of money, recoup the trading fees sooner, and earn passive income.

Keep in mind, M1 Finance doesn’t charge anything at all to trade most stocks.

Ally Invest – Best for Serious Traders

A full-service online broker is Ally Invest. If you make more than 30 quarterly trades or have a daily account balance greater than $100,000, you pay $3.95 per stock and ETF trade. If you’re not a frequent trader, the regular fee is still an industry-low $4.95 per trade.

Ally Invest also offers several commission-free ETFs for domestic and international sectors. They also offer extensive research tools and probability calculators to help you make informed investing decisions. While free investing apps help you avoid pesky broker fees, access to better research can be worth the cost.

TD Ameritrade – Best for Experience

If you want a full-fledged online broker, TD Ameritrade is a solid option. One reason to choose them is their extensive research platform. Experience investors can use their “thinkorswim platform” for advanced charting and research tools.

But, TD Ameritrade is a perennial top choice for investors of any experience level. You can also trade 300 ETFs commission-free. It costs $6.95 to trade individual stocks and ETFs not on the commission-free list. You pay more per trade, but you get more research tools. If you value research, it can be worth the extra money.

4. Peer-to-Peer Lending

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Your other crowdfunding option is peer-to-peer lending. This is similar to your friend asking if they can borrow $50 and they pay you back with interest.

People use peer-to-peer loans for many reasons including debt consolidation, business loans, and medical debt.

Prosper – $25 Minimum Investment

Another peer lending platform to try is Prosper. If you live in one of the states that LendingClub doesn’t accept investors from, you might qualify to invest with Prosper. Like LendingClub, you will invest in personal loans to borrowers who prefer to avoid a regular bank loan.

Annual returns with Prosper range between 3.6% and 8.3%. To help pick a wider basket of loans, you can use their auto-investing tool.

LendingClub – $1,000 Minimum Investment

The largest peer lending platform is LendingClub. You can invest in personal loans, debt consolidation, and auto refinancing loans too.

Similar to your credit score, LendingClub assigns each borrower a credit rating. Highly-qualified borrowers receive an “A” rating and pay the lowest interest rate. The riskiest borrowers have an “F” rating and pay a higher interest rate, but are more likely to default.

As a fellow LendingClub investor, loan defaults happen. It’s important to diversify your holdings.

You can either invest in loans you pick. Or, LendingClub automatically spreads your investment across many open loan requests. You might prefer the automated investing option to save time and to help ensure you have a balanced portfolio that helps you earn a higher interest rate without recklessly investing.

You invest in each loan in $25 increment notes. To diversify from the start, LendingClub requires a $1,000 opening investment.

All loans are either 3 or 5-year terms. Unless the borrower pays the loan early, your cash is tied up for the duration of the loan. Historical returns are between 3% and 8% depending on the credit ratings of the borrowers you invest in.

For peer-to-peer investing to be worth the long investing horizon, you might decide to only pursue loans that can yield at least 5% annual returns. If you’re closer to the 3% mark, a better option might be a CIT Savings Builder account that earns 1.75% APY and lets you make instant cash withdrawals.

StreetShares – Minimum Investment $25

StreetShares lets you invest in 12-month business loans for U.S. Veterans. This option is a good alternative to a 12-month CD as you can earn double the interest. All loans pay 5% interest. For every $100 you invest, you earn $5 interest as a quick example.

You only need $25 to start investing

SeedInvest – Invest in Startups

Do you like watching the show Shark Tank? With SeedInvest, you can invest like Mark Cuban and the other sharks. To be clear, this crowd investing option is high risk since you’re investing in startup companies. Very few startups remain in business for more than five years.

It’s like becoming a partner in a friend’s business. If the business earns a profit, you make money. Until that day comes, your money might be sitting idle.

Make sure you read the businesses pitches and documentation to make sure the business model makes sense.

5. Park Cash at a High-Yield Bank

After investing, the next best place to earn passive income is the bank. You earn monthly dividends. And, you can quickly withdraw your cash when you find a better investment option.

Now that interest rates are finally rising, your deposits earn more interest than in recent years. Parking your money at the bank won’t outpace inflation, so you still need to use some of these other passive income ideas to build net worth.

Open a High-Yield Savings Account

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If you keep all your savings at a local bank or credit union, you need to reconsider. This is because most local banks still pay paltry interest rates of 0.10% or less. If you pay a monthly bank fee, you might pay more in fees than you earn in interest.

While you might still keep enough money in your checking account to pay your monthly bills, consider keeping your extra cash in an online savings account.

CIT Bank currently offers a high-yield savings account that pays 1.55% APY with $100 to start.

However, if you deposit at least $100 monthly, you will earn 1.75% APY with their CIT Savings Builder account. This is one of the highest interest rates you’ll find for online banking.

6. Get a Bank CD

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Bank CDs (certificates of deposits) are another staple of fixed income portfolios. If you’re willing to commit your money for 12 months or 15 months, you can earn a higher rate than a regular online savings account.

You can get CDs with terms up to 60 months (5 years). These products are safer than investing in peer-to-peer loans for the same duration, but your interest can be far less.

One passive income idea to pursue is making a CD ladder. You might follow this example:

• 12-month CD: 2.60% APY
• 24-month CD: 2.65% APY
• 36-month CD: 2.70% APY
• 48-month CD: 2.75% APY

To start your ladder, you split your cash into different maturity dates. When a CD matures, you extend for the same length as your longest originally CD. With the above example, you reinvest your 12-month CD into a 48-month term. This way, one CD matures each year.

Longer-term banks CDs should earn higher interest rates than keeping your money in a savings account. These CDs can hedge you from dropping savings account interest rates. For example, online banks pay close to 2% APY today. If rates drop, your savings account earns less, but your CD continues to earn the same rate for the remaining term.

7. Fund a 529 Plan

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It’s a good idea to earn passive income for multiple long-term goals. One of your goals might be saving for college. If so, CollegeBacker makes it easy for you and others to give the gift of college.

After you open a 529 Savings Plan, you and family members can contribute to a child’s 529 plan. Today’s typical college grad walks across the stage with $35,000 in student loans to repay. That amount continues to increase with each new graduating class.

While you shouldn’t stop giving consumable gifts period, it’s a not a bad idea to give gifts that help children secure a better financial future. After all, 529 gifts might be one gift they remember you giving.

8. Invest in Bonds

As you near retirement, you find yourself investing more in bonds than stocks. That’s because bonds are more stable than stocks in holding their value. More importantly, you earn regular dividends (aka a coupon).

The historical return for bonds is between 5% and 7%. That’s just a little lower than the S&P 500 historical return of 7% with less market volatility.

To limit your investing risk, look for bonds with either an “AAA,” “AA,” “A,” or “BBB” rating. Anything below these ratings, is considered a “junk bond.” These bonds have higher yield rates, but the borrower is more likely to default. If the borrower defaults, you might not get your original investment back.

Buy Individual Bonds

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Investing in bonds can be confusing to average investors because they trade differently than stocks. You can invest in corporate, municipal, and treasury bonds. It’s possible to invest in individual bonds if you have their CUSIP number (it’s similar to a stock symbol).

If you buy individual bonds, choose bonds with different maturity dates. You will receive your original investment back in different increments similar to a CD ladder. For instance, you might invest in bonds with a 1-year, 2-year, and 3-year maturity date. These bonds can also

However, for most investors, it’s easier to invest in bond funds and ETFs. For example, Betterment automatically invests a portion of your cash into bond ETFs. These ETFs hold bonds from different issuers. And, they have different maturity dates and yield rates.

9. Buy Savings Bonds

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Instead of buying U.S. Treasury bonds (aka Savings Bonds) from your broker for a fee, buy them directly from the U.S. Treasury Direct website. Electronic bonds start at $25 and paper bonds start at $50.

You can choose between EE or I Bonds. At the moment, I Bonds pay a higher interest rate. Interest accrues every six months. You can cash out the savings bond earlier, but it fully matures after 30 years. At this point, they stop earning interest.

Pro Tip: You might earn more interest with CIT Bank high-yield savings account.

Passive Income Idea: Get a Side Hustle

Another witty passive income idea is investing in yourself with a way to make money as a side job.

When you invest in other people’s businesses, you rely on them to generate passive income for you. While this is a reliable income stream for countless investors, you have to split the profits with them.

When you invest in yourself, you can earn more profit. You have to exert more effort to begin earning a profit, but your reward can be more money.

There are many ways you can make money locally and online. These are some of our favorite ideas.

10. Start a Blog

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One of our favorite sources for passive income is starting a blog. The beauty of owning a blog is that you write or vlog about what interests you.

Chris Peach started Money Peach using Bluehost for hosting. For a few bucks per month, you can start your blog or website.

If you would like a step-by-step guide to starting your own blog or website on Bluehost, see how here.

Chris Peach will recommend you post on your blog at least once a week when getting started. Also, connect with other bloggers in your niche to help build your audience. Blogging does require a large time investment, but can also have a very large return on your small investment.

But how do I actually earn money blogging, right?

One of the fastest ways to earn money on your blog is with affiliate marketing. To learn more about affiliate marketing, Chris recommends taking a look at Michelle’s course called Making Sense of Affiliate Marketing.

Learn from a Blogging Expert: Michelle earns $100,000+ each month from her blog. Learn her success secrets in her Making Sense of Affiliate Marketing Course.

**Chris Peach (founder of Money Peach) is actually one of the success stories from Michelle’s course. Scroll down to see his results when he first took Michelle’s course.

11. Buy a Blog

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Maybe you have the money, but don’t have the time to start a blog. You can buy an existing blog that already earns passive income. This way, you can spend more time focusing on creating content and less time trying to attract your first readers.

One place to buy existing domains is Flippa.

12. Launch a Vlog

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Video is another growing frontier where regular people like you and me can make money online. Just think about all the YouTube videos you watch on a daily basis. When video is a better way to get your point across, start a vlog on YouTube.

As you gain followers and get more views, you can begin collecting revenue from ads and affiliate links. Like blogging, it takes time to post a video. But once it’s up, people can watch it as long as the platform remains active.

If you play video games, also consider launching your own channel on Twitch. Back in my video game days, I would read walkthroughs and watch what videos were available. Since then, video games have exploded in popularity.

**Chris Peach and his wife Andrea star on their own Vlog called Money, Sex, and Kids. They release 3 episodes per week on managing the money, the sex and the kids inside a marriage.

13. Host a Podcast

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Another savvy idea is starting a podcast. This is a fun way to interview guests. In the process, you help teach people something new. And, you can build a brand that helps you earn income from products you recommend on the podcast.

If nothing else, podcasting also gives you to chance to plug your own blog. You can publish your podcast to several different outlets so the whole world can hear it.

14. Dropship Products

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If you need a more immediate income stream, you might try dropshipping products. With this idea, you partner with a manufacturer to sell their products online. When somebody buys from you, the order information goes to the manufacturer. They ship the item from their warehouse and you never touch the product.

Dropshipping can require a small upfront investment. For example, you may have to rent warehouse space or buy inventory. Then, you use a storefront like Shopify to list your products online. People can buy from your online store. But, you can also sell on Amazon or eBay too.

After you get the business running, your primary duty is providing customer service to the buyer.

Bonus! Listen to how Steve Chou made $100,000 in his first year of business in the eCommerce space on the Money Peach Podcast.

15. Become a Facebook Coach

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As a Facebook coach, you can teach others how to make successful social media ads. In the meantime, you can learn the latest tricks of the trade with the Facebook Side Hustle Course.

And, you might also be able to create Facebook ads for local businesses to earn steady active income too.

16. Rent House or Spare Room

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Renting your house or spare room generates passive income too. Airbnb is one popular option. But, you should also list your property on VRBO too. These are the two most popular vacation property booking sites for travelers.

To make this a truly passive income venture, you can outsource the housekeeping to a property manager. They will handle the house cleaning, repairs, and special guest requests.

17. Own a Rental House

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When you want to earn more than real estate crowdfunding sites like Fundrise offer, you can also buy your own rental house. You will need to be a landlord who’s responsible for maintenance and vetting tenants. But, you can earn a higher rate of return because you’re the primary investor.

Coach Carson (Money Peach Podcast Episode 73) finds great properties by walking his local neighborhood. Another option is to use Roofstock to find available houses nearby or in another state.

18. Fix and Flip Houses

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If you have handy skills, you can fix and flip houses for a profit. You might prefer this option if you don’t want to be a landlord. Flipping houses can be equally rewarding as renting.

You may also decide to rent your house until the property value increases enough to justify selling your property.

19. Invest in Raw Land

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Another real estate passive income stream is raw land investing. This idea runs more along the lines of flipping houses. The one difference is that you flip unimproved land instead. You don’t have to build or rehab a current structure. Instead, you buy land at a discount and sell it for a profit.

Listen to Mark Podolsky talk about raw land investing on Money Peach Podcast Episode 97.

20. Be a Rideshare Driver

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You can also be a rideshare driver for Uber or Lyft. If you need to find extra money to invest, you can invest your rideshare earnings.

What’s awesome about being a rideshare driver is you choose the hours you want to work. That can be nights and weekends. Or, mid-afternoon on a weekday.

21. Deliver Takeout Food

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Being a food delivery person can be another exciting side hustle. Depending on the city you live, you can also deliver by foot, bike, or scooter. The two most well-known places to earn money through delivery takeout is DoorDash and UberEats.

Similar to rideshare drivers, you have flexible hours and can make money when you have free time. I recommend signing up for both of them so you have a greater opportunity to generate income.

22. Deliver Groceries

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You can also be a personal grocery shopper with Instacart. As an in-store shopper, you only have to pack orders and don’t deliver them. When you’re a full-service shopper, you pack the orders and deliver them to the buyer.

23. Rent Your Car

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When you drive your car, rent it to somebody else with Turo. This can be an easy way to cover your monthly car payments. Or, it puts that second car to good use that mostly sits in the driveway.

24. Advertise on Your Car

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Another way to make your car pay for itself is by placing advertisements on it. Carvertise is one place to apply. How much you make depends on your driving habits and where you live. If you live in a high-profile area, you earn more money.

Regardless of where you live, this can be a fun way to get free gas.

25. Start a Car Wash or Self-Storage Biz

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Owning a business isn’t the easiest passive income idea, but it can be one of the most profitable. Two businesses you might consider entering are coin-operated self-service car washes or public storage units. You might also choose to open a coin-operated laundromat too.

These businesses require the customer to perform all of the work. While you or a maintenance person needs to be around for property upkeep, these businesses virtually run themselves.

If you need to raise capital or don’t have the time to do it yourself, consider finding a business partner.

Passive Income Idea: Shave Off Unwanted Expenses

When you have any debt with a 10%+ interest rate, it can be a better idea to use your extra income to repay these balances first. The money you save by not being in debt can exceed your passive income earnings for the same time period. Let’s be honest, earning double-digit returns every year is difficult.

Even if you don’t have any high-interest debt, you may benefit from a few of these hacks. This way, you have more disposable income to invest in these passive income ideas.

Also, reducing your monthly expenses means you don’t have to earn as much passive income. Your ultimate passive income goal should be earning enough passive income each month to pay your monthly bills. Lower bills mean less pressure to earn more income.

26. Make a Money Plan

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Do you want to manage the money better? If so, try Chris Peach’s own Cash Flow Formula is a free mini course to help get started right now.

You will learn how to set up a cash flow plan that fits your lifestyle and works around YOU instead of you working around your money.

27. Refinance Your Debt

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When you refinance your debt for a lower interest rate, you lower your monthly interest payments. Continue to make the same monthly payment. But, the interest savings now go to your principal (the amount you originally borrowed) instead. In turn, reducing your principal balance reduces how much interest accrues each month.

Lower Your Credit Card Interest Rate

Credit cards have some of the highest interest rates. If you have credit card debt, this is the first place to focus. Tally looks at your credit card balances. They will extend a lower line of credit so you can repay your balance sooner.

Learn more about how Tally works to save you money by lowering your high credit card interest rates.

Personal Loans and Consolidate Debt

Personal loan interest rates at Prosper start at 6.95% APR. If you currently have credit card interest rates of 20%, you can slice your interest rate by two-thirds.

Student Loans

You can also refinance your student loans for a lower interest rate. Credible compares the rates of 12 different lenders for private, federal, and Parent Plus loans.

They also compare lender rates for mortgage refinancing and personal loans too.

Home Mortgage Refinancing

The “normal” way of thinking for home loans is making the minimum monthly payment for 30 years. There are a few ways you can refinance your home mortgage to pay less home interest.

Chances are, your home mortgage is your loan with the lowest interest rate. But, when you’re paying interest on a LARGE purchase for three decades of life, you can almost buy a second house with your interest payments.

Lenda shows you the best way to refinance your mortgage. If you’re about to buy a home, you can get a new home loan from Lenda too.

28. Lower Your Monthly Bills

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In addition to lowering your loan interest rates, you should also reduce your monthly spending.

You can also use Trim to effortlessly lower your monthly bills. Higher bills make it harder to fight debt.

I’ve personally used Trim to reduce my home internet and cell phone bill. I enter my account details and they apply the best discounts to my plan. And, they can also negotiate a lower monthly rate for your cable tv, electric, and car insurance bills too.

Finally, Trim will also cancel the monthly subscriptions you keep forgetting to call and cancel yourself. Simply, send a text message saying “Cancel _____” and Trim gets to work.

**We tried out Trim and did a review of it here.

29. Earn Shopping Rebates

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Another favorite way to maximize your money is using cashback apps.

Depending on where you shop, you can get 40% back on your shopping total. And, you pay the exact same at checkout as those who don’t use an app.

Plus, these all apps are all free to join.

Ebates

Ebates is one of the largest cashback apps.

They have a mobile app and a browser extension so you never miss a cash back opportunity. Personally, this is my favorite cashback app that my wife and I have been using for over five years.

Once a quarter, they send your earnings via PayPal or check. They also offer bonus cash when you redeem your balance for gift card rewards too.

You also get a $10 cash bonus with your first $25 purchase.

Honey

Honey helps you save money in two different ways:

• Enters all discount codes at checkout to get the best price
• Earn bonus cash back at online retailers

Amazon shoppers will also like Honey as they compare Amazon’s prices to third-party sellers.

For the discount codes and Amazon comparison shopping, you enjoy instant savings. With the shopping rewards, you redeem your rewards for gift cards.

Paribus

Another way to effortlessly earn cashback is with Paribus. When prices drop on items after you buy them, you can get receive a price difference refund.

Paribus monitors price drops for over 25 retailers and also hotel rooms too. You can also receive compensation for late shipping arrivals too.

You might not like Ebates and Honey because you must activate a shopping session to get discounts. With Paribus, you register your email address and they automatically monitor your shopping activity for price drops.

Ibotta

Most cashback apps only give you cash rewards for non-grocery purchases. Ibotta lets you earn cash rewards with each supermarket visit too. All you have to do is activate the in-app offers and scan your grocery receipt.

You receive cash rewards for buying specific brand names like Pepsi or Starbucks Coffee. Other offers are “any brand” like buying milk, batteries, or fresh produce. You can earn rewards on every grocery trip.

What I like about Ibotta is their monthly bonuses. If you buy groceries weekly, you can get bonus cash for redeeming multiple offers each week or month.

And, you can redeem your rewards for PayPal cash or retail gift cards.

30. Credit Card Rewards Points

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First off, all of us at Money Peach only recommend using a credit card under these two conditions:

• Pay your balance in full each month before the due date
• Don’t spend more than you do when paying with cash or debit

When you follow these two rules, credit card points are an easy way to cushion your wallet. You can either earn cash back or travel rewards points. For instance, our rewards help pay for our annual family vacation.

Interested in travel hacking? Hear some tips from award travel expert Travis Sherry.

Passive Income Ideas: Outside of the Box Ideas

Depending on your interests, you might also enjoy earning passive income from these ideas too.

31. Complete Tasks Online

One popular way to make money online is using a “get-paid-to” site. These platforms pay you for what you already do online. You can either request cash or gift card payment. And, you can usually earn bonus cash by referring friends.

Swagbucks

One of my favorite micro-tasks sites is Swagbucks. You earn points by taking surveys, watching videos, and shopping online.

Another way to earn money is referring friends to join Swagbucks. Each of you earns $3 when a friend joins Swagbucks. For instance, you earn $9 if you refer three friends to join Swagbucks.

Besides the many easy ways to earn rewards points, Swagbucks has low redemption minimums too. You can start redeeming your points for gifts cards with a $3 balance. So, you can get a free gift card for each friend you refer.

Tip: Read Chris’ brutally honest Swagbucks review to decide if this is the best idea for you.

InboxDollars

Another get-paid-to site is InboxDollars. You can make money from your many online activities. One fun and easy option is reading sponsored email. Shopping online is another easy way to earn cash. Active members earn up to $30 per day. That can be an extra $30 you have to invest and earn lifetime passive income.

32. Freelance or Start Your Own Biz

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Many people have dreams of starting their own online business. What holds them back are the entry costs. If you sell a physical product, you have to buy inventory and pay shipping when a product sells. In other words, your profit margins low and the reward isn’t worth the risk.

Instead, you can freelance online using your digital skills. Fiverr is one of the largest online freelance platforms. You can connect with clients to complete the following tasks:

• Graphic Design
• Jingles and Music
• Website Design
• Writing
• Voiceovers

Do you have a golden voice? If so, listen to voiceover actor Carrie Olsen talk about her experience on Money Peach Podcast episode 96.

33. Take Surveys

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Another quick way to make money is taking surveys. Most of us have pockets of free time throughout the day. Instead of playing a game app, take a survey instead. Survey Junkie is our favorite for taking surveys and is the quickest survey site to pay out in $10 increments.

34. Play Games Online

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We all know the common perception about playing games online, it’s a waste of time.

However, with Mistplay they actually pay you to play games. And, you earn bonus points for meeting your money goals.

Your points can then be redeemed for items such as Visa gift cards, Amazon gift cards, Xbox gift cards, Google Play, iTunes, Nintendo, PlayStation gift cards and more.

35. Write an Ebook

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Legend has it that everyone has at least one book in them they can write. If you have a story to tell, ebooks are one of the easiest ways to reach readers. This is because your book is digitally delivered. Anybody with an internet connection in any corner of the world can buy your book.

The largest ebook platform is Amazon Kindle Direct Publishing. There’s a lot of initial work that goes with writing an ebook. But, once you publish it, you can earn royalties as long as people continue to buy your book. Kindle also offers a print-on-demand service where Amazon mails a physical copy of your book too.

As an extra piece of advice, pick an attractive cover design and hire a proofreader for a “second set of eyes.” You can hire both of these experts on Fiverr.

If you’re daring, you can also record an audiobook version.

36. Create an Online Course

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If you love to teach, online courses can also be lucrative. This can be a better option if you prefer speaking and producing videos to writing. Like ebooks, you will spend a lot of time creating the course. After the course goes live, students can buy your course. Periodically, it’s a good idea to update old content and so your video remains relevant.

After your course is complete, start selling it on Udemy.

37. Design Clothing

• Medium Challenge
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Another way to earn passive income is designing clothing and home decor on CafePress. You open your own store and upload your designs. When you make a sale, CafePress prints and ships the items. That’s what makes CafePress an attractive passive income idea.

38. Use Your Smartphone

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It doesn’t get much easier than making money than using the MobileXpression app. How much you make depends on how much you use your phone. While you won’t get rich from this passive income, you only have to install the app to start making money.

Download the MobileXpression app here:

• Android Devices
• iOS Devices

39. Find Missing Money

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• Low Rewards

Do you love that feeling when you find a spare change in your pocket or some other random place? Missing Money can give you a similar feeling. And, the payout can be bigger.

It sounds surprising in this day, but companies lose track of people when they move. When companies or utilities owe you money and can’t find you, the cash sits in a trust. By entering your personal information online, you can see if anyone owes you money.

You might be able to collect an old security deposit, safe deposit box contents, uncashed paychecks, and savings accounts or investments.

40. Participate in a Clinical Trial

Clinical trials can pay more than some side hustles in relation to how much time you spend. Each trial is different. If you qualify, you might participate in sleep studies or testing new medical treatments.

You can find legit clinical trials near you at ClinicalTrials.gov.

Also, did you know you can earn $400 extra a month donating plasma?!

Summary

Warren Buffet said, “If you don’t find a way to make money while you sleep, you will work until you die”

Warren is exactly right. This is why passive income is so important and why so many people like yourself are looking for the right way to earn passive income.

As you know by now, there are numerous ways to earn passive income. We mentioned everything from real estate, to side hustles, to investing, to even donating blood plasma! The point to illustrate 40+ passive income ideas is to show you the possibilities.

So, what’s it going to be for you today? Are you going to start very easy and take a few surveys? Or maybe you are ready to start your blog like I did. And if those aren’t for you, then maybe you’re looking to have your money earn money for you through real estate or DIY investing.

It’s time to take action my friends! What’s going to be your first step to passive income?

What are the best online survey sites right now? In this video, I will break down my favorite three and show you how they work and why they are so popular.Below the video, I will share the rest of the survey sites we have found that are worth mentioning.

Top 3 Survey Sites from Video

1. Survey Junkie
2. Swagbucks
3. Inbox Dollars

Paid online surveys are a great way to earn extra money throughout the month for very minimal effort. You are not going to get rich by any means, but you will have the option to earn money to pay for things like:

• Gas
• Date night
• Something you’re saving for
• Emergency Fund
• Debt Payoff
• or just some simple fun money

The Top 3 Online Survey Sites

There are many surveys out there, but only a few of them are actually legitimate companies. Therefore, I have scraped through dozens of these paid online surveys to personally test and review each one of them. The following are the absolute best online surveys we could find and test for you.

1. Survey Junkie

We start with Survey Junkie because they are one of the best around. , they have the most user-friendly site for surveys. In addition to being extremely user-friendly, they have a Trust Pilot rating of 4.5 out of 5 from users just like yourself.

You can also take multiple surveys each day. So, the sky is the limit for how many surveys you can take! If you’re invited to a focus group or a phone survey, you can earn more than online surveys.

How does it work?

On the Survey Junkie page, look for surveys with the green diamond icon. These surveys offer the highest payment for the shortest time commitment.

After taking a survey, you earn points to redeem for either cash into your PayPal account or e-gift cards.

Survey Junkie is open to those living in the U.S., Canada, or Australia. You only have to be 13 years old to join.

We also have a full review of Survey Junkie here, including screenshots and what to expect when you join.

2. Swagbucks

You will earn points, AKA Swagbucks, for doing the following:

• Watching promotional videos
• Taking online polls
• Filling out surveys
• Buying products
• Playing games online
• Searching the internet

When you spend a few minutes a day doing these activities, you will earn enough points to exchange for gift cards or cash. You have the choice of Amazon Gift Cards, cash via PayPal, or prepaid cards from Visa. Every month, Swagbucks also offers Swag Ups that let you earn bonus points from surveys and other in-app activities.

Your rewards balance only needs to be $3 to redeem points for gift cards!

With easy-to-earn gift cards, Swagbucks is one of the most popular survey sites for a reason. You don’t have to change your daily internet routine to get paid weekly.

We also have a full review of Swagbucks here, including screenshots and what to expect when you join.

3. Inbox Dollars

Inbox Dollars is a rewards club that pays you in cash for completing a variety of online activities. This can include searching the internet, filling out surveys, printing off coupons, and shopping online.

The one thing I love about Inbox Dollars is it’s simple: they will pay you for doing things you’re already doing every day. You don’t have to change your daily routine to make money.

To learn more about Inbox Dollars, visit our full review of Inbox Dollars here.

Other Great Surveys

I think you are going to love the first three, but the others are worth mentioning. Especially number 4: Nielsen BetaPanel. This is survey is newer to us, but it’s right up there with Inbox Dollars, Swagbucks and Survejunkie.

4. Nielsen BetaPanel

Are you ready for an effortless way to get paid?

Nielsen BetaPanel is a little different than the Nielsen Ratings for television. Now, you earn rewards points by sharing your internet activity instead by installing their app.

You also have the option to partake in special surveys throughout the year.

Keep in mind, there are no guaranteed rewards with Nielsen Digital Voice. However, you are always eligible for the monthly $10,000 cash sweepstakes and can re-enter multiple times.

5. LifePoints

Now on both desktop and mobile, LifePoints lets you participate in

• Surveys
• Daily challenges
• Quizzes
• Personality tests

Your payment options include PayPal cash and gift card rewards and Life Points is only open to U.S. residents at least 14 years old.

Bonus: Look for “Boost” opportunities to earn bonus points. One easy bonus is completing the daily challenge for 30 days!

Start Lifepoints on Desktop

or 

Start Lifepoints on Mobile

6. OneOpinion

OneOpinion allows adults and teens to participate in surveys and product testing opportunities. The rewards points you earn can be redeemed for PayPal cash or Visa debit cards. Membership is open to anybody at least 13 years old that lives in the U.S., Canada, or Western Europe.

7. Global Test Market

As its name implies, Global Test Market is a survey site open to citizens from over 40 countries. Most survey sites only accept members from North America and western Europe. If you don’t live in these two regions, join Global Test Market.

GTM will ask your opinion on multiple topics about consumer brands, current events, and tourism.

You will earn points or sweepstakes entries for each completed survey for gift cards or PayPal cash.

8. National Consumer Panel

National Consumer Panel will actually pay you in the form of:

• VISA Gift Cards
• Amazon Gift Cards
• iTunes Gift Cards
• or even a Kindle Fire

With National Consumer Panel, you vote with your wallet.

NCP will either send you out a scanner or you can download their APP on your smartphone. With the app or scanner, you will scan the barcode of the items you purchase each week to earn points. In addition to scanning, they also have online surveys you can take to earn rewards as well.

You can earn bonus points by taking surveys, but sharing your recent purchases is the primary way to earn points. To earn a loyalty bonus, upload your purchases weekly.

9.  Ipsos i-Say

Ipsos-iSay is one of the largest and well-knonw survey sites is Ipsos i-Say. You will earn points with every survey and can take part in their prize drawings as well.

Ipsos lets you exchange your points for gift cards or PayPal cash. You can begin exchanging points for gift cards with a $5 balance.

The Ipsos loyalty program pays you up to 600 bonus points every year! That’s enough points to get an extra $5 gift card.

10. Opinion Outpost

Opinion Outpost will send you a quick little survey to learn more about you. Basically, they want to know what you like and/or dislike, so they only send you surveys that are relevant to you.

Once you’re all set up, you will complete surveys and will receive CASH or Gift Cards to brands like Amazon and iTunes. You can also wait for surveys to come to you in your email. But if you’re ready now, simply log in to Opinion Outpost when you have some free time and start making money.
Each completed survey also enters you in the quarterly $10,000 cash sweepstakes too. Completing more surveys means more entries!

Only open to people living inside the United States. And, you must be at least 18 years old to join.

11. SurveyVoices

SurveyVoices gives you the chance to take surveys for cash and earn a $300 signup bonus! To earn the bonus, you must complete several offers. After setting up your profile, SurveyVoices matches you with surveys from seven survey providers!

There’s no limit to how many surveys you can take each day. If you’re looking for only one survey site, SurveyVoices is a solid choice.

12. Pinecone Research

Pinecone Research is one of the most popular surveys among survey members. In addition, it is also one of the top-rated survey sites by the survey panel industry. Pinecone Research is a little more exclusive as well. The only get started is through an invitation from a Pinecone member or from a trusted website like this one.

Next, you will be sent unique and thought-provoking online surveys via email. Each survey takes 15-20 minutes to complete and you will earn 300 points, which is equivalent to $3.00 USD ($3.00 Canadian and £3 in the U.K.). You can cash out your points at any time.

You have the option of payment via:

• Check in the mail
• PayPal
• Amazon gift cards
• Merchant-specific gift cards (iTunes, Wal-Mart, and Starbucks to name a few).

Bonus: Often, Pinecone Research will send you a product to test and may let you keep it after your review!

13. Vindale Research

Take surveys, open sponsored email, watch videos, and look for rewards codes with Vindale Research. Earn extra cash by testing products and online services. All surveys pay cash that can be delivered via check or PayPal.

Vindale Research also pays you $5 for sharing your payment photo. This can be the easiest five bucks you earn for taking a picture!

You must be at least 18 years old and a resident of the U.S., Canada, Australia, or the United Kingdom.

14. SurveySavvy

SurveySavvy offers two different earning opportunities:

• Online surveys
• Behavioral research

When you connect their SavvyConnect behavioral research software, you earn $5 per month for each device. Even if you don’t participate in surveys, you still money surfing the internet.

Of course, you earn the most by taking surveys and installing the SavvyConnect app.

You will receive payments by check to valid U.S. mailing addresses. You can request payment with a balance as small as $1.

15. Mobile Xpression

Another behavioral research company is Mobile Xpression. You get paid to share your internet activity and by taking surveys. Mobile Xpression pays you weekly for your effort.

Rewards points can be redeemed for cash, gift cards, merchandise, and weekly prize drawings.

You must own either an iOS smartphone or tablet and be at least 18 years old to join. Mobile Xpression is also available for Android.

16. Panda Research

Panda Research allows you to answer surveys and read emails to make money and pays up to $25 per task. You can also print coupons and discounts to save money. And, some partners give you free products too.

You might like Panda Research because they send payment by PayPal on the 1st and 15th. This is just like a real parti-time job! Only U.S. citizens are allowed to join.

17. PrizeRebel

PrizeRebel specializes in surveys, product offers and watching videos. Earn points for every completed survey that can be redeemed for cash in the form of Visa debit cards or PayPal. You can also redeem your points for 300+ gift cards, including a $2 Amazon gift card!

If you enjoy watching videos, PrizeRebel tends to pay better for videos than other online survey sites.

Loyal panelists also earn a monthly point boost and you can enjoy prize discounts too.

18. Toluna Quick Surveys

Toluna is another large survey site that doubles as a social media platform. When you’re not taking surveys, you can interact with other Toluna members to earn more rewards points. Your rewards points can be redeemed for cash, gift cards, and merchandise.

Since Toluna partners with many major media companies, you will enjoy many survey opportunities. Look for sponsored surveys that pay more than the usual daily surveys.

Bonus: Another fun way to earn points is to test product samples. Toluna is well-known for offering food and makeup samples in exchange for your feedback.

19. American Consumer Opinion

American Consumer Opinion is the perfect option for casual survey seekers. You will only receive a few invitations each year, but you can also earn up to $50 per survey. And, you might be invited to test products that have higher payouts.

Rewards points can be redeemed for PayPal cash.

20. Surveys4Moms

For ladies only, Surveys4Moms features surveys that parents will enjoy. Surveys include answering questions about consumer products for the ladies and for mothers. Once your rewards balance reaches $20, you can request payment by PayPal.

21. VIP Voice

With VIP Voice, you earn rewards points to enter auctions and sweepstakes to win. As you answer more surveys, you will qualify to enter more lucrative giveaways.

VIP Voice is a good option to diversify your potential rewards. You will find many unique sweepstakes other sites don’t offer. But, you should use one of the other sites on this page to be your primary survey site.

22. Daily Goodie Box

What if you get free samples sent to your front door?

Daily Goodie Box sends you a box of full-size product samples that you get paid to review. You might receive food or beauty products based on your interest.

For example, if you’re pursuing a healthy lifestyle, you might receive a box containing health items. These could be tea tree toothpaste, vegan mayo or even herbal tea. You can try new products and rediscover some old favorites.

Goodie boxes ship every month. You never have to pay shipping charges or provide your credit card number to get a box.

Although you won’t get paid in cash or gift cards, you receive several dollars worth of samples. By bartering your opinion for goodies, these boxes can be worth more than some surveys.

23. Survey All Stars

Feel like an all-star with Survey All Stars when you take a survey with one of their partners. Survey All Stars partners with other survey networks to connect with multiple networks on one platform.

Depending on the survey partner payout method, you will either earn cash rewards or points. You can take as many surveys as you want each day.

24. CashCrate

CashCrate lets you earn rewards points for the following activities:

• Online surveys
• Product testing
• Online shopping
• Playing games online
• Referring friends

You must be at least 13 years old to join and all rewards are paid by check on the 20th of each month.

Just for signing, you will earn $1 before you complete your first activity.

25. ClickPerks

ClickPerks is a flexible site to earn and redeem rewards points. You can earn points for online surveys, reading emails, shopping online, and performing web searches. Rewards points can be redeemed for cash, gift cards, and merchandise.

26. MySurvey

MySurvey lets you take online surveys and polls from your computer or mobile devices. You also earn points by sharing your daily routine in a weekly diary. A third way to earn points is by testing products.

Logging your daily routine is a unique feature most survey sites don’t offer. Instead of sharing your day on social media, do it on MySurvey and get paid for living life!

Rewards points can be redeemed for gift cards or PayPal cash. Membership is open to U.S. residents at least 16 years old.

27. Opinion Bureau

Opinion Bureau pays you reward points to take surveys and answer opinion polls. Points can be redeemed for gift cards and PayPal cash when your balance reaches $10.

Membership is open to most countries.

28. YouGov

YouGov asks your opinion about consumer brands and current political events. There’s also a community where you can interact with other members. You earn points answering daily survey invitations and polls to redeem points for cash and gift cards.

Membership is open to U.S. and Canadian residents. Teenagers can also join when they’re at least 14 years old.

29. Mindswarms

Most people think you must start a YouTube channel to get paid for product review videos.

Mindswarms pays you $50 to answer seven questions in less than 10 minutes. All you need is a webcam or smartphone and a microphone to record your responses.

All payments are made via PayPal and membership is open to everybody in the world.

30. iPoll

iPoll pays you rewards points for answering surveys about products and services you use. You can exchange your rewards points for PayPal cash and gift cards like Amazon and iTunes.

Plus, you’re entered into the $10,000 quarterly cash giveaway with each completed survey. You can answer surveys from your mobile device or computer.

Membership is open to most countries if you’re at least 18 years old.

31. E-Poll

E-Poll Surveys is an exciting online survey site with exciting prize options. While many survey sites only offer a quarterly cash giveaway, E-Poll has a monthly $1,000 prize draw! And, 50 members can win $20.

They also have some exciting survey invites too as you can earn up to 1,000 points per survey. You also earn 100 points by joining E-Poll and completing your first survey.

E-Poll also offers video surveys you can take from your phone or computer.

32. TeensEyes

A survey site exclusively for U.S. teenagers between 13 to 18 years old, TeensEyes collects teens’ opinions on consumer brands with a monthly survey. Teens can earn money by exchanging rewards points for cash or gift cards with annual earnings limit of $600.

33. KidzEyes

KidzEyes is one of the very few survey sites open to children. With their parents’ permission, children ages six to twelve in the U.S. can take a monthly survey to earn rewards. You can request payment by PayPal or check when your balance reaches $10.

34. OpinionSquare

You will earn rewards points for each survey you complete on OpinionSquare to redeem for cash, gift cards, or prizes. All members are also eligible for the monthly $100,000 cash giveaway which is open to U.S. and Canadian residents.

35. Valued Opinions

Earn up to $5 per survey with Valued Opinions. Some of the rewards options include gift cards to Amazon, Macy’s, and Target. Only U.S. residents can join and the minimum age to join is 13 years.

36. PanelPolls

The entire family can participate in paid surveys with PanelPolls! Rewards points can be redeemed for PayPal cash or gift cards. You might even be invited to a local in-person focus group for an even larger reward!

37. ClearVoice Surveys

Sharing your opinion on ClearVoice Surveys about products and services you use on a daily basis. Possible rewards include:

• Amazon gift cards
• Payoneer prepaid debit MasterCard
• Dining Dough gift cards

Membership is open to U.S., U.K., and Canadian members once you earn $10 in rewards.

38. Crowdology

Crowdology is a growing survey site. Most surveys take between five and ten minutes to complete. Your two rewards options are:

• PayPal cash with an $8 rewards balance
• Amazon gift cards with a $10 minimum balance

Crowdology is for for U.S. residents at least 18 years old.

39. Google Opinion Rewards

What can be cooler than taking surveys for Google?

Google Opinions Rewards are Surveys might ask your opinion about Google marketing campaigns, consumer brands, and even location-based merchant surveys.

For your effort, you will earn Google Play store credits that you will exchange for things like books, movies, music and Android devices.

You can also learn 20 more ways to earn free Google Play credits here.

40. MTurk

Besides being the largest online store, Amazon also runs the MTurk. You earn points that can be redeemed for Amazon credit or cash. Most of these surveys are research studies which are different than the consumer opinion surveys you may be used to.

In addition to surveys, you also get paid to complete online micro-tasks. These could look like data entry, transcribing audio, and performing web research. Each task only takes a few minutes to complete. If you enjoy a challenge, some tasks pay a speed bonus.

41. Consumer Opinion Institute

Influence future products and services with Consumer Opinion Institute. You will receive up to two surveys by mail and one online survey invitation each month. The surveys will take up to 20 minutes to complete and depending on the survey, you will either earn cash or prizes.

42. MindField Online

MindField Online will invite you to participate in opinion surveys and focus groups. Some of the potential rewards include PayPal cash and Amazon gift cards. You must be at least 15 years old to join and live in the U.S.

43. UserTesting

UserTesting allows you to get paid to test and offer your opinion by testing apps and websites. They will pay you $10 for 20-minutes you spend completing a series of tasks and verbally express your opinion.

To become a tester, you must be at least 18 years old and must have access to any of the following:

• PC
• Mac
• Apple iPhone
• Apple iPad
• Android phone
• Android tablet

You must also have a webcam and microphone to record audio and video.

44. LatinoEyes

LatinoEyes is for U.S. Latinos can take surveys that want to hear the Latino voice. You can expect one or two surveys each month and will be paid via check when your balance reaches $15.

45. Mobee

Mobee pays you to mystery shop with their smartphone app. Find a local mission once you walk into a participating store and answer between five and ten questions about your experience.

Most Mobee missions will take only five minutes to complete and you will receive gift cards for your effort.

46. TestSpin

Earn Amazon gift cards by taking paid surveys and testing various products, apps, and websites with TestSpin. You must be at least 13 years old to register. For tax purposes, you can only earn up to $600 in rewards each year.

47. Surveys On The Go

Surveys On The Go is an app-based survey site to take surveys with your smartphone. You will receive a notification when a new survey arrives and you will be paid via PayPal. Any U.S. resident at least 16 years old can join.

48. Medical Advisory Board

Calling all medical professionals! Medical Advisory Board is looking for healthcare professionals from all over the world to give their opinion  to help shape the medical industry. You will earn points with each activity and can cash them out for PayPal cash.

49. CVS Pharmacy Advisor Panel

CVS customers will receive a few survey invitations from CVS Pharmacy Advisor Panel each year about their CVS shopping experiences. Your opinion will can influence their products, services, and philanthropy. In exchange for your time, you will earn ExtraCare savings and prizes.

Frequently Asked Questions

You probably had a few questions as you were reading through the 50 survey sites above. Here are your answers to the most commonly asked questions about surveys.

How To Free Earn Gift Cards?

You will normally earn points which you will later redeem for cash via PayPal or e-gift cards. Some of the gift card retailers are Amazon, Wal-Mart, iTunes, and Starbucks. In my experience, you will get paid the quickest by setting up your PayPal account with the survey site you’re using.

How Long Does a Survey Take?

On average you can expect to spend 10-15 mins per survey.

What Kind of Surveys Will I Fill Out?

Once you sign up, you will answer a few questions so you only receive surveys that will most likely interest you.

How Often Will I Receive Surveys?

This depends on how often you fill them out. If you are someone who fills out every single one you receive, then you can expect to receive up to 3 per day. If you are someone who is hit or miss, you will only receive periodic survey requests. The more surveys you complete, the more money you will earn.

I Need to Make Extra Money, What Do You Recommend?

If you are looking to hustle right now to make some extra cash, I would sign up for several of them. They are all free to join and you can opt out at any time. The good news is you will also have the chances to earn money from home during the time you would otherwise be wasting.

Summary

If it’s extra cash this month for a date night, a tank of gas, or a fun night out, surveys are great! You can also use the extra cash to throw at debt or save for whatever! Like we said earlier, you won’t get rich taking surveys. But, you may as well earn a little income in your spare time, right?

First off, not knowing how to invest $1,000 is a good problem to have. After all, you have extra money to earn passive income instead of paying bills. And, $1,000 is enough to build a small, but diversified portfolio.

When it comes to investing, one of the most common questions I receive is How do I invest? Where should I invest? and How much should I invest? 

My answer is always similar: It depends.

There are so many wonderful options out there. From ETFs to real estate, from savings accounts to peer-to-peer lending, you have many options when it comes to investing your next $1,000.

And most importantly, you do not have to be an expert. You just need to know where to get started.

1. How to Invest $1,000 with Index Funds

Investing in the stock market can be your best option for how to invest $1,000. One reason is that the stock market is highly liquid. It’s easy to buy or sell shares when the market’s open. Some of the other suggestions require a five-year investment commitment.

There are two different styles of investing:

• Active Investing: You try to outperform the market
• Passive Investing: You invest to match the overall market’s performance

Index funds fall into the passive investing category. Since you only try to match the performance of the market, fund expenses are lower than active funds. The less money you pay in fees, the more money you can invest in the market.

If you’re new to investing, index funds should be your first investment. In fact, you might decide to invest all $1,000 into index funds.

For many investors, index funds are the only thing they invest in. Not to sound cliche, but here are two reasons why:

• Index funds are the cheapest way to invest in stocks and bonds
• Zero investing skill is required

For these two reasons, index funds are Warren Buffett’s favorite investment idea for DIY investors (like you and me).

Most people don’t have the time, skill, or desire to research and pick individual stocks. Even many professional investors don’t “beat” the market on a regular basis. So, the best option for most investors is investing in index funds.

What Do Index Funds Invest In?

With index funds, you invest in hundreds (or thousands) of companies with each dollar you invest. So, investing in an S&P 500 index fund lets you invest in the 500 stocks that compose the S&P 500 index.

When you only have $1,000 to invest, you can only afford to buy individual shares of a few companies. And, you can’t even buy a single share of Amazon stock which currently trades above $1,500 per share.

Being able to own small positions of many companies lets you capture the total market return of the index you track. There’s an index fund for nearly any index include the S&P 500, Russell 2000 small-cap companies, and developed foreign countries. And, your portfolio is less volatile than only investing in a few individual stocks.

How to Invest in Index Funds

With your 401k, you can invest in index mutual funds. For your personal accounts, a better option can be index ETFs. Most index ETFs have lower fund expenses than mutual funds.

If you’re a DIY investor, you might try investing in an S&P 500 index fund. This fund tracks the performance of the 500 largest stocks on the U.S. stock exchange. You get exposure to nearly every market sector. And, many of these companies also do business overseas. So, you can indirectly invest in internationally with a domestic company.

To diversify you should invest in funds that focus on different sizes of companies. Some of the different index fund sectors to consider include:

• S&P 500
• Large-Cap Stocks
• Mid-Cap Stocks
• Small-Cap Stocks
• International Developed Market Stocks
• International Emerging Market Stocks
• Government Bonds
• Corporate Bonds

If this is your first investment, focus on the S&P 500 and Large-Cap index funds first. These funds invest in some of the largest companies on the planet like Apple, Amazon, and Microsoft. Although these companies don’t have the most income upside like small fast-growth companies, they are less volatile. Minimal volatility means you’re more likely to earn steady profits.

You can invest in index funds with any brokerage like Vanguard, E-Trade, or Charles Shwab.

If you are looking for hands-off investing, start with Betterment. Betterment has extremely low fees (0.25% – 0.40% of account balance per year) and offers up to one year free management. Get started with Betterment here.

A Quick Word About Target Date Funds

A third option is investing in target date funds. With these funds, you choose the fund nearest your retirement date. The fund automatically invests in a basket of stock and bond ETFs. This is the least time-consuming way to invest. But, perform your due diligence as some target date funds have high fund expenses. And, some under-perform their benchmark.

Target date funds are a good option if it’s the difference between investing and not. But, you might consider mirroring their portfolio allocation. It takes a few extra minutes, but you can avoid fund fees that reduce your total returns.

Did you know you can invest your spare change into index ETFs? Every time a payment is made on your debit or credit card, the Acorns app will round up to the nearest dollar and invest your change for you. 

Betterment

Betterment is a robo-advisor that handles all the investment decisions for you. They automatically invest your cash into a basket of stock and bond index ETFs. And, they also rebalance your portfolio for free. As you near retirement, Betterment shifts your asset allocation to hold more bonds and fewer stocks.

What we like about Betterment is that they invest your cash in 11 different stock and bond index ETFs. In other orders, every dollar you invest in instantly diversified. The exact asset allocation depends on your age and investing goals. Each one invests in large and small companies to get exposure to the entire stock market.

Plus, Betterment lets you trade partial shares of each index ETF. If you buy each index ETF in a regular brokerage like Vanguard, you have to buy full shares. When you only have a small amount of cash to invest, it’s hard to build a diversified portfolio. With Betterment, each investment only needs to be at least $1. Even though it’s only a few pennies, you own partial shares in multiple index funds with every investment. Betterment Review

Blooom

Many people have a love-hate relationship with their 401k plan. They love the employer match for the free investing money. But, they hate the plan fees and lousy investing options.

With Blooom, you now have the ability to optimize your 401k, 401a, 403b, 457, or TSP investments. To start, Bloom will perform a free portfolio checkup. Then, they choose the best funds in your plan to meet your investing goals. Bloom also makes sure you have the right stock and bond asset mix too. 

2. How to Invest $1,000 with Stocks and ETFs

Once you build a firm foundation of index funds, you can start investing in stocks and sector ETFs. If you’re a DIY investor, this can also be an exciting way to invest in promising companies to boost your earning potential.

With stocks, you’re a direct shareholder for each company you invest in. As long as the share price is below $1,000, you can buy at least one share. Minus Amazon and a few other companies, most individual shares trade for less than $1,000 each.

Investing Hack: Did you know you can actually buy partial shares of any stock with M1 Finance? M1 Finance also has free trades and allows you to invest in Stocks, ETFs, and even fractional shares.

And with sector ETFs, you invest in companies for a certain industry. While there’s an ETF for just about any sector or commodity, some sector ETFs include:

• Consumer Staples
• Cybersecurity
• Financials
• Health Care
• Real Estate

Sector ETFs have higher fund expenses than index funds, but they are still a cheaper way to invest in many companies with one investment. Since you’re still investing in multiple companies, they are more diversified than owning individual stocks.

To keep a manageable portfolio, you might wish to only hold up to 10 individual stocks and sector ETFs in addition to your index funds. These holdings can be more volatile than index funds so you need to watch them more closely. Your first $1,000 investment might only be enough to buy one or two investments, but it’s a start.

Enjoy Unlimited Free Trades With M1 Finance

To trade any stock, sector ETF, or index ETF for free, invest with M1 Finance.

You can also buy partial shares of any stock or ETF. So, you can instantly diversify your portfolio. The cost savings by not having to pay $4.95 per trade adds up quickly.

M1 requires a $100 initial deposit for taxable accounts. For your retirement account, you must deposit $500 to start investing.

Be a DIY Investor with Ally Invest

One of the best online brokers for DIY investors is Ally Invest. They have many commission-free sector ETFs you can invest in for domestic and global stocks. These commission-free ETFs save your $4.95 each time you buy or sell shares. That’s more money you can use to invest.

You can also trade individual stocks and ETFs for $4.95 per trade. This is the average trade fee for stocks and ETFs, however it is still more expensive than M1 Finance’s zero fee and unlimited trades.

3. How to Invest $1,000 with Crowdfunded Real Estate

When you don’t need to touch your cash for at least five years, real estate investing in a great option.

You won’t experience the same roller coaster ride in share price values as investing in stocks or public REITs. Besides less volatility, you can earn annual returns that compete with the historic 7% annual return of the S&P 500.

Fundrise is a great start to crowdfunded real estate. They offer the lowest minimum investment of $500 and give you 90-day-money-back-guarantee on your investment. Historically, investors are returning 8.7% – 12.4% annually and they have a 4.98/5 rating from the BBB.

The most affordable way is to invest in crowdfunded real estate. With this suggestion, you directly invest in private real estate deals. Unlike the past, you don’t need large sums of cash to buy rental property or commercial real estate.

With real estate crowdfunding, you can start investing in multiple properties with $500 initial investment. If you go about real estate investing the regular way, you can easily expect to invest  $50,000 or more to buy a single investment property.

Therefore, crowdfunded real estate allows you invest in deals that were only available to the rich a few years ago. And, you can start investing for less than $1,000.

To be clear, private real estate is highly illiquid.

Only invest money you don’t plan on using for the next five years. This is how long you must commit each investment before you can make penalty-free withdrawals for most private REITs.

If you can commit to the long-term investing time, you can earn potentially more income than public real estate stocks. For example, you can earn consistent returns between 8% and 12% in private real estate. With public real estate investments, you might earn a 4% annual dividend. But, your investment loses value if the share price drops in value more than the dividend payout.

Crowdfunded real estate relies more on the current job market quality, not earnings reports and other macroeconomic events.

Most crowdfunding platforms require a minimum $5,000 investment. And, you must be an accredited investor with $1 million in the bank or an annual income above $200,000. Chances are, you don’t meet either of these traits. If don’t, you still have a few ways to invest in crowdfunded real estate without being rich.

Fundrise

Arguably, the best crowdfunded platform for non-accredited investors is Fundrise. You only need to invest $500 to join Fundrise. Plus, they accept investors from every U.S. state.

If you already feel like you have a well-diversified stock portfolio, you can invest the full $1,000 in Fundrise. When your account balance reaches $1,000, you have more investment options. Some of these options have more long-term upside than the Starter Portfolio.

The one difference between Fundrise and accredited-only investing platforms is that you don’t invest in single projects. Sorry, but it’s federal law. Instead, non-accredited investors can only invest in private REITs. Think of them as a real estate ETF that invests in residential and commercial real estate projects.

If you like investing in real estate, you can also invest in public real estate stocks and REITs. Owning both helps you diversify your portfolio. And, you public REITs are highly liquid. If you need cash within the first five years, you can easily sell your investment.

Starter Portfolio

They only require an initial $500 investment to join their Starter Portfolio. The Starter Portfolio splits your investment between debt and equity.

With debt investments, you earn quarterly dividends by lending money to the real estate developer. These investments are less risky, but you also have lower rewards.

Your equity investments are riskier and can produce higher returns. You invest in the actual equity of a project and become part-owner. With equity investments, you earn most of your profit from property appreciation when the project sells.

Until your account balance reaches $1,000, this is your only plan option.

Advanced Investing Plans

When you invest $1,000 right away, you can skip the starter plan and go straight to the advanced plans. If you have a starter plan, you can upgrade to an advanced plan when your balance reaches $1,000.

The three advanced investing plans:

• Supplemental Income (Dividend-focused with debt investments)
• Balanced Investing (Debt and Equity Investments)
• Long-Term Growth (Equity-focused investments)

Fundrise projects these advanced plans can earn between 8.2% and 10.5% annually. Of course, your returns can be higher or lower than these projections.

Rich Uncles

Another platform for non-accredited investors is Rich Uncles. You might like Rich Uncles if you want to invest in specific types of real estate. With Fundrise, you invest in both commercial and residential properties. Not every investor wants to invest in both types.

With Rich Uncles, you can invest in either commercial real estate or student housing. For commercial real estate, the minimum initial investment is $500.

The second investing option is a student housing REIT. Rich Uncles invests in college dorms that meet these criteria:

• 150-bed minimum capacity
• 90% rental occupancy rates
• Within a one-mile walking distance of a major NCAA Division I campus

You only have to invest $5 to open a position. The projected annual return is 6% for the student housing REIT.

4. How to Invest $1,000 with Peer to Peer Investing

Are you looking for something that can produce stock market-like returns with less volatility? If so, try peer to peer investing.

Banks earn money by lending money to borrowers and collecting interest payments. From those interest payments, they pay you interest for your savings account and money market deposits.

While bank account interest rates are rising, you can still earn more by “being the bank.” With peer to peer investing, you skip the bank and lend directly to borrowers.

Lending Club offers an easy way to start investing in peer-to-peer lending. Investors buy notes corresponding to different loans, grades, and terms, then receive monthly principal and interest payments as borrowers pay off their loans.

As a result, your investment can earn between 3% and 8% annually. Each month, you receive a monthly interest payment that you can either reinvest or deposit into your savings account.

Depending on your investment horizon, you have two different peer lending options. Like crowdfunded real estate, your cash might be off-limits for up to five years.

LendingClub

The world’s largest peer lending platform is LendingClub. You invest in loans with a three or five-year repayment term. The minimum you can invest in each note is $25. Some of the different loan types you can invest in include:

• Credit Card Payoff
• Debt Consolidation
• Medical Debt
• Small Business

To start investing, you must invest the full $1,000 to open an account. This high initial investment helps you diversify in multiple loans. With a minimum per loan investment of $25, you can invest in 40 loans.

According to LendingClub, 99% of investors see a positive return when they own more than 100 notes. For this to happen, you need to invest $2,500. You can eventually scale to this account balance by investing new money monthly. Until then, you can invest your first $1,000 to start investing in peer to peer loans.

LendingClub Has Automated Investing

While you can manually invest in open loan requests, LendingClub also has an automated investing tool. This saves you time and helps you diversify your notes.

When you enroll in automated investing, LendingClub spreads your investment across loans with different credit ratings. You can earn more by investing in lower credit ratings, but the chance of default is higher.

Each month, you earn interest payments back from each borrower. If a note becomes past due and the borrower stops paying, you lose that investment. Loan defaults are unavoidable, that’s why it’s important to invest in as many as possible.

StreetShares

Another unique peer lending concept is StreetShares. You invest in small business loans for military veterans. And, you only need to invest $25 to open an account. So, you can invest a portion of your $1,000 in StreetShares and still have enough cash to invest in these other ideas.

The investing commitment is only 12 months for each investment. So, this peer lending option is most similar to a 12-year CD. Right now, StreetShares pays a 5% yield on every investment. The best 12-month bank CD yields are currently around 2.50% APY.

So, a $1,000 investment will earn $50 in interest before taxes. This can be a good alternative to bank CDs and other fixed income investments like bonds which have smaller potential yields.

5. How to Invest $1,000 with Online Savings Accounts

If you still have a few decades until retirement, don’t park all your cash into an online savings account. Interest rates are finally becoming attractive again with interest rates near 2%. But, that’s still not enough to keep up with inflation.

You still need to keep a portion of your money in cash in a savings or money market account. Some experts recommend keeping 10% of your cash in a savings account. You have a hedge against unexpected market downturns. And, you have a reserve to buy investments at a lower price that you can sell high later.

Right now you can open a CIT Savings Builder account with $100 minimum deposit and an incredibly high 2.05% APR. Compare that with the “big banks” offering 0.05% APR, and the CIT Savings Builder has a 22x higher savings rate!

This is higher than the interest you might earn from your brokerage money market fund. As you need more cash to make future investments, you can easily transfer the cash to your broker.

Even if you don’t keep your investment cash in a savings builder account, it’s an excellent place for your regular savings. Maybe, you can find a new home for your savings builder accounts.

6. How to Invest $1,000 in Your Own Business

Another unconventional idea is to invest in yourself. Too often, we focus on how we can invest our cash in other businesses to earn passive income.

How do you invest $1,000 into your own side hustle?

The answer depends on how you plan on making money.

Whether you are starting a side hustle or a business, you must have a website. Here’s a step-by-step guide to start your own website in less than 15 minutes.

Ideally, you will pick an idea that can earn recurring income even while you sleep. Or, the side hustle might eventually replace your current full-time income so you have a better quality of life. After all, time can be just as valuable as money.

If you’re willing to invest some “sweat equity” with your cash, many side hustles are nearly free to start. In today’s digital economy, online side hustles are the best way to earn passive income. To get your brain going, you might try some of these ideas out.

Start a Blog

You can start a blog and earn passive income from affiliate income. Like any investment, it takes time to earn passive income. For most bloggers, it takes a few months to build traffic and eventually make your first dollar.

What’s awesome about blogging is that you can post about anything you want. If writing isn’t your cup of tea, you can also make videos or creative designs too.

You might use a portion of your $1,000 to buy a website domain and to pay hosting fees.

Dropship Online

Another option is dropship physical goods online. With this side hustle, you partner with a company and sell their products online. When a buyer makes a purchase, the shipping information is sent to the supplier. You make money and never touch the actual product you sell.

Dropshipping has some upfront costs. You must make a down payment for the inventory. But, you don’t have to find a place to store the goods you’re trying to sell. You only have to market the product and provide customer service to the buyer.

Get some tips from dropshipping pro Steve Chou in Money Peach Podcast Episode 56. He and his wife make more than $100,000 a year from their ecommerce store.

Create Digital Designs

Custom graphic design is another way to make money online. Some of your design options include:

• Book Covers
• Clothing
• Drinkware
• Logos
• Stationary
• Wall Art

You only need computer software to make designs that pay. If you have an older computer, you may need to upgrade to get the latest software.

With CafePress, you can also create an online store to sell items to all buyers. When your design sells, CafePress prints and ships the item for you. You only have to create eye-popping designs and they handle the rest of the selling process.

Become a Rideshare Driver or Deliver Food

Maybe you’re a people person. You can also invest your $1,000 to be a rideshare driver. While you shouldn’t use all the cash to buy a new rideshare-friendly car, use part of the cash to start your ridesharing business.

Some of those expenses can include:

• Getting a new smartphone
• Performing necessary car repairs to pass the safety inspection
• Detailing your car to receive positive reviews from riders

You can join Uber, DoorDash or both. Each platform offers new driver bonuses. You might join one at a time to maximize your new driver incentives.

7. How to Invest $1,000 into College Education

Maybe you’re already on track with your investing goals. If so, you can start investing for your child. That might be starting a custodial account and investing in index funds.

Or, you can start saving for college with a 529 plan. These tax-advantaged plans are similar to your Roth IRA. You fund them with after-tax dollars, but your child can withdraw the earnings tax-free for educational expenses.

And, if you invest in your state’s 529 plan, you can minimize your state income tax bill too.

Learn more about investing for college with Abby Chao on the Money Peach Podcast.

FAQS on How to Invest $1,000

Only having $1,000 to invest might not seem like a lot of money. But, this $1,000 and even your first $100 investment put you on the path to financial freedom. Each person has different investing goals.

You might decide to only invest in one idea above. Or, you can diversify in several. These questions can help you make the best decision.

Are Index Funds or Individual Stocks Riskier?

In general, individual stocks are riskier because you’re less diversified. But, you also have more profit potential with most companies. The reason why individual stocks are riskier is that investment performance completely relies on one stock. With an index fund, you can earn dividends and share appreciation from many companies.

Also, if a stock has a sharp drop, the performance from the other stocks can minimize the downside potential. Nobody can fully predict which stocks will outperform the broad market and which ones will trail the market. To hedge against the unpredictable, broad market index funds are a popular option because you have less downside risk because your investment is more diversified across multiple sectors and company sizes.

Why Are Investing Fees So Important?

With any investment, you should try to pay as few investing fees possible. At first, paying $4.95 to buy stocks or investing in a sector ETF with a 1% fee doesn’t seem like a small amount of money. But, that’s a small fortune when you add up the expenses over your investing career.

The more money you pay in fees, the less money you have to invest. In turn, that means less passive income potential. And you either have to invest more cash or choose riskier investments to make up the difference.

Some of the fees you should pay attention to include:

• Fund Fees (Index Funds have the lowest fees of any mutual fund or ETF)
• Broker Trade Fees for stocks and ETF shares
• Platform Fees (Especially for crowdfunded real estate and peer to peer lending)
• Annual Taxes (Capital Gains vs. Ordinary Income)

A quick way to see if you’re paying too much in investing fees is to use Personal Capital. It’s a free app that compares your current holdings to the industry average fee. And, you can track your net worth and investing goals with Personal Capital too.

To reduce your annual tax burden, consider investing your $1,000 with an IRA. Under current tax law, you only have to pay taxes once on your contributions.

Is It Smart to Dollar Cost Average?

A popular investing method is dollar cost averaging. With dollar cost averaging, you invest small amounts of money each month, regardless of share price. This practice prevents you from trying to time the market.

How You Might Dollar Cost Average $1,000

When you have $1,000 to invest, you might decide to invest $100 a month for the next ten months. This strategy helps protect you from market volatility. And, it doesn’t tempt you to time the market.

Dollar cost averaging can be a good idea if you invest in index funds or ETFs with a low investment minimum. Many index funds only require subsequent investments of $100 or less. And, you don’t pay a trade commission each month.

If you have to pay a $4.95 trade fee or there’s a high subsequent investing requirement, you might be better off investing the entire balance at once.

When you don’t dollar cost average, you might wait for share prices to go lower so you can buy more shares. Or, you might wait for the market to rebound if an unexpected downturn rattles your investing confidence. In either case, you’re not investing and continue to hold cash. If you’re not careful, you might spend the money or earn a mediocre savings account interest rate.

Tip: Keep your extra cash in a high-yield savings account until you invest it.

How You Might Lump Sum Invest $1,000

The opposite of dollar cost averaging is lump sum investing. In this case, you invest the entire $1,000 at once.

This is the better option if you have to pay trade fees (i.e. $4.95 per trade for stocks) or there’s a high investment minimum. For example, you must invest $1,000 to join LendingClub.

When buying individual stocks, make sure the broker trade fee is less than 2% of your total investment. If your broker charges you $4.95 per trade, the least you should invest is $200 per trade. If you follow this rule, you can make five $200 trades with your $1,000 balance.

Summary

There are many ways to earn passive income by investing. How much you can earn depends on your risk tolerance. And, the sooner you invest, the sooner you can begin earning passive income.

What do you think is the best way to invest $1,000? Are you going to invest in one idea or several of these different options?

If you currently dread turning a year older, these birthday freebies can be an exciting way to celebrate another year of life with your friends and family. And, you might even start a new birthday tradition! No, we’re not talking about scheduling your annual physical or making sure all of your important documents and designated beneficiaries are up to snuff.

Bonus Birthday Tip: When you share your opinion with Swagbucks during your birthday month, they will send you bonus Swagbucks which can be redeemed for a free gift card!

We all like getting free stuff so we can spend less money each month, and joining birthday clubs is a natural next step to living a frugal lifestyle.

Where to Get Free Stuff On Your Birthday

Because you can get free food and merchandise on your birthday, this list is divided into specific categories to help you quickly find the freebie that interests you most. Most places let you join their birthday club when you’re at least 13 years old.

To receive the free offer, you might have to join the birthday club at least seven days before your birthday, so don’t wait until the last minute. Many clubs also send out free offers to celebrate each anniversary you join the mailing list too.

Anniversary bonuses let you get double rewards and potentially get free stuff every month of the year.

Get Free Food On Your Birthday

With these birthday freebies, you won’t have to cook for yourself on your birthday after visiting these restaurants. Free food is the most extensive list as you literally have your pick from A-Z of restaurants with free appetizers, meals, and desserts.

1. A&W

Join the A&W Rooty’s Club to get a free root beer float on your birthday.

2. Abuelo’s

Abuelo’s offers a free dessert on your birthday and a free appetizer when you join Mi Abuelo’s Rewards Club.

3. Acapulco

If you live in the Los Angeles area, you can get a free entree at any Acapulco location!

4. Applebee’s

Applebee’s offers a free gift on your birthday when you join their Neighborhood email list to get the scoop on the newest dishes and best deals.

5. Arby’s

Receive a free small milkshake at Arby’s. You can immediately get a free roast beef classic sandwich when you purchase a drink too.

6. Au Bon Pain

Get a free sandwich or salad on your birthday from Au Bon Pain. You’ll also get a free travel mug by joining the Au Bon Pain EClub as well.

7. Auntie Anne’s Pretzels

Raise your hand if the smell of Auntie Anne’s Pretzels makes you hungry when you visit the mall. Now, you can get a free pretzel on your birthday by downloading their app.

8. Backyard Burgers

Get a free burger when you join the email club as well as on your birthday from Backyard Burgers.

9. Baja Fresh

Get a free burrito on your birthday from Baja Fresh and a free taco when you enroll in Club Baja. Make sure you sign up at least four days before your birthday or you’ll have to wait an entire year to get your free burrito.

10. Bakers Square

Do you like pie? You can get a free slice of pie from Bakers Square on your birthday.

11. Bashas’

Bashas’ is a regional Arizona grocer that lets every child receive a free birthday cake through their tenth birthday.

12. Baskin-Robbins

Get a free scoop of ice cream from Baskin-Robbins by joining their birthday club.

13. bd’s Mongolian Grill

You can get a free meal on your birthday from bd’s Mongolian Grill. Keep your eyes peeled for a $5 coupon by joining the email list too.

14. Beef O’ Brady’s

Get a free dessert with an entree purchase at Beef O’ Brady’s by joining their Team O’Brady’s club.

15. Benihana

Do you love the hibachi experience? Benihana gives you a $30 coupon during your birthday month so your family can enjoy the show!

Don’t forget to register your children for the Kabuki Kids program to get a free mug with the purchase of a kids meal on their birthday as well.

16. Bojangles’

Get a free Bo-Berry Biscuit each year with a purchase at Bojangles’. You can also receive other coupons throughout the year.

17. Bonefish Grill

Have your pick of free Bang Bang Shrimp or a dessert from Bonefish Grill on your birthday.

18. Boston’s

After joining the MyBoston’s reward program from Boston’s Restaurant and Sports Bar, you will get a free flatbread on your birthday. On each anniversary year, you’ll also get a $5 off $25 purchase coupon too.

19. Boston Market

The Boston Market VIP Club lets you get a free dessert with the purchase of any meal. As a welcome offer, you will get $3 off your first $10 purchase.

20. Bruegger’s Bagels

Bruegger’s gives you a free bagel with cream cheese on your birthday. You’ll also enjoy the same freebie when you join the Inner Circle mailing list too.

21. Bruster’s

You can get a free waffle cone with the purchase of another waffle cone on your birthday from Bruster’s.

22. Bubba Gump Shrimp Co.

A visit to the Bubba Gump Shrimp Co. is a must for any Forrest Gump fan. You will get a $25 birthday gift that expires on the 15th of the month after your birthday.

23. Buca di Beppo

You’ll need to bring the whole family along to Buca di Beppo, but you can get a free birthday cake when you make an online reservation for four people. First-time subscribers can also receive a free pasta dish too.

24. Buffalo Wild Wings

It’s not free, but Buffalo Wild Wings gives you a $5 of $25 order coupon for your birthday.

25. California Pizza Kitchen

Get a free dessert at the California Pizza Kitchen every birthday. After registering, you can begin the feast with a free small plate.

26. Captain D’s

Join the D’s Club at Captain D’s and get your free pick from the following entrees:

• Two piece fish
• Twelve piece butterfly shrimp
• Grilled tilapia dinner

27. Carrabba’s Italian Grill

Carraba’s Italian Grill is offering a free dessert with the purchase of an entree on your birthday.

28. Caribou Coffee

Enjoy a free medium Caribou Coffee drink by joining the Caribou Perks program. After your first visit, you’ll also get a free drink voucher and you can get first access to upcoming products and merchandise!

29. Carvel

Get a free birthday dessert at any Carvel as a Fudgie Fanatic.

30. Cheeseburger in Paradise

You don’t have to be a “Parrothead” to enjoy free birthday fun stuff from the Cheeseburger in Paradise restaurant chain. Although you will need to join their Board Members rewards program to receive your special birthday surprise.

31. Cheesecake Factory

Get a free sundae from the Cheesecake Factory on your birthday.

32. Chevy’s

Chevy’s Fresh Mex cooks you a free entree on your birthday.

33. Chili’s

Chili’s offers a free dessert on your birthday. Anytime you visit a Chili’s, you can also enjoy free chips and salsa or a non-alcoholic beverage too. This might be the most lucrative rewards program if you visit the same restaurant brand on a regular basis.

34. Chipotle

Party Chipotle-style with a free gift on your birthday when you sign up for Chipotle rewards.

35. Church’s Chicken

Receive a free leg, thigh, or chicken strip on your birthday from Church’s Chicken.

36. Chuy’s

Chuy’s offers a free dessert on your birthday. This is one of the few restaurants that doesn’t have a rewards program, so all you have to do is tell the host it’s your birthday when you’re seated.

37. Cinnabon

Cinnabon probably has one of the most appetizing aromas ever. On your birthday, you can get a free iced coffee. What about the cinnamon rolls you ask? You can get a free Minibon roll when you signup for emails.

38. Cold Stone Creamery

Cold Stone Creamery gives you a buy one get one free (BOGO) Creations coupon. So, bring your spouse or children along to enjoy some ice cream too.

39. Corner Bakery Cafe

Get a free bakery sweet from Corner Bakery Cafe on your birthday. Joining the email list also gives you an entry into Corner Bakery Cafe’s free gift card sweepstakes too.

40. Country Kitchen

You can enjoy a free meal during your birthday week from Country Kitchen.

41. Cracker Barrel

Visit a participating Cracker Barrel location on your birthday and they will give you a free dessert and sing the birthday song.

42. Culver’s

Culver’s will send you a coupon for a single scoop sundae on your birthday. Joining Culver’s E-Club also lets you get a value basket with the purchase of another value basket.

43. Dairy Queen

Join the Dairy Queen Blizzard Fan Club and you’ll receive special birthday offers on your birthday and half-birthday. These BOGO coupons usually let you get a free Blizzard with the purchase of another.

44. Del Taco

Have a free premium regular-sized milkshake compliments of Del Taco on your birthday. As a sign up freebie, you will also get two free grilled chicken tacos!

45. Denny’s

Denny’s is known for their breakfast specials and you can get a free Grand Slam breakfast that includes pancakes, eggs, bacon, and sausage.

46. Dickey’s Barbecue Pit

Do you like barbecue sandwiches? If so, Dickey’s gives you a free one on your birthday. You can also get a free drink when you join the loyalty program too.

47. Dippin’ Dots

Get a coupon for a free small cup of Dippin’ Dots on your birthday.

48. Driscoll’s

This birthday freebie has a unique twist because Driscoll’s sells fresh berries at your local grocery store. You will receive a special birthday gift and a 50-cent welcome coupon. To save even more money on groceries, use a receipt scanning app each time you walk the aisle.

49. Dunkin’ Donuts

Enjoy a free birthday drink from Dunkin’ Donuts on your birthday. You can also get a free drink after joining DD Perks and for every 200 points you earn.

50. Earl of Sandwich

Get a free brownie on your birthday at your local Earl of Sandwich location. You can sign up for a loyalty card online or by asking the cashier.

51. Edible Arrangements

Receive a free 12-count box of chocolate dipped fruit during your birth month at Edible Arrangements.

52. Einstein Bros. Bagels

Einstein Bros. Bagels treats you to a free breakfast sandwich when you buy a drink on your birthday. And, you’ll also become a member of the Shmear Society and can get a free bagel for joining the club too.

53. Famous Dave’s

With Famous Dave’s, you will get your meal 50% off when you buy another entree.

54. Fatz Cafe

If you live in the southeastern United States, you can get a free calabash chicken dish from Fatz Cafe on your birthday when you buy a second entree

55. Fazoli’s

Get a free dessert after buying an adult entree at Fazoli’s.

56. Firehouse Subs

Firehouse Subs gives you a free sub sandwich when you buy a regular sub, chips, and drink. Make sure you take along a friend or come hungry!

Parents can also enroll their children under the age of 13 to receive a free sub sandwich too.

57. Fresh to Order

Fresh to Order gives you a birthday surprise and another surprise on your anniversary.

58. Friendly’s

Receive a $3 off ice cream cake coupon at Friendly’s. You can also enjoy discounts on other Friendly’s ice cream cartons too.

59. Fuddrucker’s

Get a ⅓ lb. burger free when you buy a burger from Fuddrucker’s.

60. Godiva

Joining the Godiva Chocolate Rewards Club lets you receive a special birthday chocolate offer. As a club member, you will also get free chocolate every month of the year too.

61. Gold Star Chili

Get a free meal at Gold Star Chili on your birthday plus other BOGO specials during the year.

62. Hometown Buffet

By signing up for Crave Connection, you can get a BOGO adult buffet at the following restaurant brands:

• Country Buffet
• Hometown Buffet
• Old Country Buffet
• Ryan’s

63. Houlihan’s

Houlihan’s will give you a free entree on your birthday. You’ll also get $10 off your first purchase just for joining.

64. IHOP

Join IHOP’s email club and you can enjoy a free meal on these dates:

• Your birthday
• When you sign up
• Each anniversary date of joining the program

65. Jack In The Box

The Jack In The Box birthday freebie is currently two free tacos. You can unlock the coupon after providing your email address or phone number.

66. Jamba Juice

Cool off with a free juice or smoothie from Jamba Juice on your birthday.

67. Jason’s Deli

Receive a $5 coupon when you join the Jason’s Deli birthday club.  While you’re there you can also request additional info and offers if you have a Gluten sensitivity, Vegan dining, or want to use Jason’s catering services.

68. Jersey Mike’s

Jersey Mike’s will give you a free regular sub and 22 oz. drink. You have an entire year to redeem the coupon and only need to sign up at least 24 hours before your birthday.

69. Joe’s Crab Shack

Come hungry to Joe’s Crab Shack as you can get a free appetizer with your birthday meal.

70. Johnny Rockets

Get a free burger at Johnny Rockets when you sign up and on your birthday too.

71. Krispy Kreme

Become a Friend of Krispy Kreme to get a free donut on your birthday. Make sure you visit when the red light is on to get a fresh donut for the pure goodness.

72. Logan’s Roadhouse

Have a free appetizer or dessert with Logan’s Roadhouse.

73. Lone Star Steakhouse

You will receive a birthday surprise from Lone Star Steakhouse.

74. Longhorn Steakhouse

Longhorn Steakhouse will give you a free dessert on your birthday. You will also get 100 free bonus points that can immediately be redeemed for a meal upgrade, sweet bite, or sour bite too.

75. Maggiano’s Little Italy

If you prefer quality Italian cuisine, you can get $10 off your birthday visit from Maggiano’s Little Italy. A minimum $30 check is typically required.

76. Marble Slab Creamery and MaggieMoo’s

Both Marble Slab and MaggieMoo’s participate in the Slab Happy Rewards program. On your birthday and SlabHappy date, you’ll get a $5 off coupon for your next visit.

77. Marie Callender’s

Marie Callender’s might be known for their pies, but their birthday freebie is the Magnificent Six breakfast entree. It’s served all day and consists of two eggs, two pancakes, and two sausages.

78. McAlister’s Deli

Get $5 off your next visit at McAlister’s Deli.

79. Mimi’s Cafe

You will enjoy a birthday offer that helps you eat almost for free at Mimi’s Cafe when you make a purchase.

80. Moe’s Southwest Grill

Download the Moe’s Rockin’ Rewards mobile app to get a free burrito on your birthday. You’ll also get free nachos or a large drink for downloading the app as well. And, you can earn free meals the rest of the year by visiting Moe’s and earning Rockin’ Rewards points.

81. Noodles

Noodles gives you a free bowl of noodles on your birthday.

82. Not Your Average Joe’s

Not Your Average Joe’s will send you a $15 off coupon to help you celebrate your birthday lunch or dinner.

83. Nothing Bundt Cakes

Get a free bundtlet cake on your birthday from Nothing Bundt Cakes.

84. O’Charley’s

O’Charley’s offers a birthday surprise of $5 off your next order. By joining the O’Club, you’ll also enjoy a free appetizer.

85. Old Chicago

Receive a free pizza on your birthday from Old Chicago. They also have 110 beers from around the world that you might want to try as well.

86. Old Spaghetti Factory

Children can enjoy a free meal at The Old Spaghetti Factory on their birthday. It doesn’t appear that parents can partake in the birthday freebies, but you can get free ice cream with every meal!

87. Olive Garden

Olive Garden gives you a free dessert on your birthday.

88. On The Border

With the On The Border Club Cantina, you will get a  free cup of queso on your birthday and each anniversary of joining the club.

89. Outback Steakhouse

Outback Steakhouse will send you a birthday special offer when you download the app.

90. Panera Bread

Join Panera’s rewards program and receive a free pastry or cookie on your birthday. You’ll get your first reward just for signing up!

91. Papa Murphy’s

Papa Murphy’s is the home of “take and bake pizza” you cook in your own oven. For your birthday you can get free cookie dough with any pizza purchase.

92. Pei Wei

With the Pei Wei Birthday Club, you can get a free small plate that can be enjoyed during your birthday month.

93. Perkins

Adults and children can enjoy free birthday stuff from Perkins. Adults can enjoy a free Magnificent Seven birthday entree that includes two eggs, three pancakes, and two bacon or sausage. Children can enjoy a free birthday meal too.

94. P.F. Chang’s

Get a free appetizer or dessert at P.F. Chang’s on your birthday.

95. Pizza Hut

Pizza Hut will give you a free birthday offer after joining the Hut Rewards program. As of this writing, the birthday surprise is free cinnamon sticks when you make an online order.

96. Planet Smoothie

Receive a free smoothie from Planet Smoothie on your birthday.

97. Qdoba

Join the Qdoba Rewards program and receive a birthday surprise.

98. Red Lobster

Red Lobster will send you a birthday coupon to save money on your next visit. You need to register at least seven days before your birthday.

99. Red Robin

During your birthday month, Red Robin lets you get one burger for free.

100. Rita’s

With Rita’s Birthday Club, you will get a free birthday treat to some Italian ice or custard.

101. Ruby Tuesday

You don’t have to say goodbye to Ruby Tuesday on your birthday because you can get a free burger or garden bar entree!

102. Sbarro

Get a free slice of pizza when you buy a drink from Sbarro on your birthday.

103. Schlotzsky’s Deli

There’s a free small sandwich with your name on it from Schlotzsky’s Deli. You will need to download their app to enjoy your birthday meal.

104. Shoney’s

Get a free piece of Shoney’s hot fudge cake on your birthday. Children can join the Kid’s Club and enjoy a free meal!

105. Smashburger

Smashburger will give you a free burger or shake on your birthday.

106. Smokey Bones

Enjoy a free dessert on your birthday at Smokey Bones after joining their Bones Club. You can get this birthday freebie even if you only join their email list and don’t join their additional rewards program.

107. Sonic

Sonic offers a birthday treat to children and adults. Your two options are medium tater tots or a wacky pack.

108. Sonny’s Barbecue

Get a free Big Deal meal at Sonny’s Barbecue on your birthday. You will also get a $5 coupon when you join the ‘Q Crew. As you see, Sonny’s is one of the few restaurants that actually offers an entire birthday meal for free!

109. Souper Salad

Souper Salad gives you a free meal during your birthday week courtesy of joining the Souper Fresh Club.

110. Starbucks

Starbucks will treat you to a free handcrafted beverage or food item on your birthday.

111. Steak ‘n Shake

Steak ‘n Shake will cook you a free double steakburger and fries for your birthday. Visit during Happy Hour and you can enjoy their world famous shake at a discount too.

112. Subway

Subway will credit 20 rewards points to your MyWay Rewards account balance. This is enough points for one of the following rewards:

• Fountain drink
• Bag of chips
• Two cookies

Or, you can bank up the points to redeem for a free sandwich later in the year! It’s Subway so you can have it your way.

113. Taco John’s

Download the Taco John’s app and you will receive a birthday coupon plus the opportunity to get a free meal on every ninth visit.

114. TCBY

Get a free cup of frozen yogurt and additional birthday coupons from TCBY.

115. Texas Roadhouse

Receive a birthday surprise at your local Texas Roadhouse. You can also get a free appetizer when you join their email list too.

116. T.G.I. Friday’s

Get a free dessert with meal purchase on your birthday from T.G.I. Friday’s. You will also get your choice of a free appetizer or dessert when you join their rewards program too.

117. The Melting Pot

If you’ve never tried fondue, now’s your chance! The Melting Pot gives you a free chocolate fondue for two.

118. Tony Roma’s

Join the Tony Roma’s Email and Text Club to receive a birthday surprise.

119. Tropical Smoothie Cafe

Treat yourself to a free 24 oz. smoothie at Tropical Smoothie Cafe.

120. Uno Pizzeria

Enjoy a free appetizer with the purchase of an entree at Uno Pizzeria.

121. Waffle Club

Get a free waffle on your birthday and when you join the Waffle House Regulars Club.

122. Wendy’s

Wendy’s sends you a birthday coupon that can help you save cash on your purchase.

123. Wetzel’s Pretzels

Get a free pretzel on your birthday and when you download the Wetzel’s Pretzels mobile app.

124. Which Wich

Which Wich also offers a free regular sandwich when you become a Vibe Club Rewards member. There is one condition to get your free Wich. You must have made at least one sandwich purchase in the last 12 months.

125. Wienerschnitzel

You will get a free Weinerschnitzel chili dog on your birthday and when you join their fan club.

126. Wild Wing Cafe

Receive a birthday surprise when you get a Wild Wing Cafe loyalty card. You can also win other fun prizes if you visit the Cafe on a regular basis.

127. Wings To Go

Everybody gets five free wings on their birthday–even children–at Wings To Go! You only have to sign up for the email list.

You have until two weeks after your birthday to redeem your birthday coupon.

128. Wingstop

Wingstop offers free large fresh cut fries for your birthday. As a sign up bonus, you can get regular-sized fries too.

129. Yard House

Yard House will give you a free mini dessert for your birthday when you join their email list. You can be 13 years old or older to join this list.

130. Yogurt Mountain

Text your birthday month code to Yogurt Mountain to get a free yogurt during your birthday month and other ongoing specials.

131. Zaxby’s

Zaxby’s gives you a free nibbler for your birthday when you join the Zax Mail Club. You can also get a free sandwich meal right now.

132. Zoe’s Kitchen

Enrolling in the Zoe’s Kitchen rewards program lets you enjoy a free birthday meal. Zoe’s will also send you sneak peeks for new items, local tastings, and recipes to delight your palette too.

Experiences

Maybe you enjoy experiences more than free stuff for your birthday. If that’s the case, you might consider one of these experiences instead.

133. AMC Theaters

AMC Theaters gives you free popcorn when you buy a movie ticket. Since popcorn can cost just as much as a movie, you can view this offer as a BOGO deal. You can join the AMC Stubs program for free and even enjoy complimentary soda refills and discounted movie tickets on Tuesday.

134. AMF Bowling

AMF Bowling will send you a birthday coupon to help you and your family get a free game.

135. Baltimore Orioles Home Games

If you live in the Baltimore area, kids under the age of nine can attend a home game free when an adult buys an upper deck seat. This freebie is available during the entire Baltimore Orioles season and is a fun excursion for your child’s birthday.

Your local Major League Baseball team might have a similar birthday perk. Visit the team website or call the clubhouse to find out.

136. Chuck E. Cheese

Get 100 free tickets when you make a food purchase at Chuck E. Cheese. While kids of all ages can partake in this experience, your children might benefit this most from this freebie.

137. Dave & Buster’s

Enjoy $10 of free gameplay at Dave & Buster’s for your birthday.

138. Disney

If you take your family to Disney, try going during one of your children’s birthdays. They will receive a free birthday button to receive complimentary birthday greetings from other Disney guests.

139. Medieval Times

Enjoy a free dinner and show at Medieval Times with the purchase of an adult ticket. The offer is valid for your entire birthday month. Yes, you get free food for your birthday, but how often do you get a free show as well?

Retail Birthday Freebies

With these birthday freebies, you won’t have to buy yourself a birthday gift this year!

140. American Eagle

If you belong to the American Eagle rewards program, look out for a 15% coupon for your birthday. This offer is completely free, but you can still save some cash.

141. Aveda

It costs $10 to join the Aveda Pure Privilege program, but you’ll receive a birthday gift worth $23. If you enjoy Aveda products, Happy Birthday!

142. bareMinerals

bareMinerals offers a birthday gift, but you can also request free samples with every order.

143. Barnes and Noble

Barnes and Noble lets children enjoy a free cupcake from their Kids Cafe when you join the Kids Club.

144. Bebe

Join the club at Bebe to get a free birthday offer every year.

145. Build-A-Bear

Enjoy a free birthday gift from Build-A-Bear if you or your child enjoys stuffed animal toys.

146. Columbia

Columbia gives you a birthday gift and welcome gift when you join their rewards program. As a rewards member, you’ll always get free shipping which can come in handy if you’re an avid camper who always loves a good deal.

147. CVS Pharmacy

Join the CVS Pharmacy and you can receive a free $3 birthday coupon to save on your next visit.

148. DSW

DSW sends their Rewards Members a $5 birthday coupon. While you can earn bonus points by donating your gently used shoes to DSW, you might also try selling your shoes for cash to make room for your new purchase too.

149. Famous Footwear

Receive a $10 off coupon for your birthday at Famous Footwear.

150. Hallmark

The Hallmark Crown Rewards program lets you get a free card and a coupon for a future purchase.

151. Helzberg

Order a catalog from Helzberg to receive a birthday deal.

152. Lands’ End

Lands’ End will send you a birthday coupon that lets you save $50 on a $100 purchase.

153. Old Navy

Old Navy will send you a birthday coupon that lets you get a discount on your entire purchase.

154. Petco

Don’t forget about your pet’s birthday! Your furry friend can get a free treat on their birthday thanks to Petco after you complete a pet profile.

155. Proctor and Gamble

Proctor and Gamble sends you extra coupons and product samples for your birthday. Of course, you’ll also enjoy additional free coupons to save on your favorite household staples from diapers, beauty products, and toothpaste.

156. Radio Flyer

Receive bonus points three weeks before your child’s birthday from Radio Flyer. Maybe you have one of their wagons or trikes and your child is (sadly) outgrowing it all too quickly. These rewards points can help you surprise them for their birthday with another Radio Flyer model.

157. Redbox Movie and Game Rental

When you join Redbox Perks, you will get a free movie for joining AND a free movie every year on your birthday. We also have found twelve more free Redbox codes for free movies and games throughout the year.

158. Sephora

After you join the Sephora Beauty Insider club, you can get a free set of minis during your birthday month when you visit a Sephora store or make an online purchase.

159. The Body Shop

Receive a $10 coupon from The Body Shop to get the skincare and beauty products you use on a daily basis.

160. The Children’s Place

Until your child turns 14, you can receive a 20% off coupon for their birthday. You can register up to four children, but twins and triplets will each receive their own offer from The Children’s Place.

161. Ulta Beauty

Ulta gives you a double birthday gift:

• Free birthday gift
• 2x points on all purchases during your birthday month

162. World Market

Receive a special birthday surprise from World Market. You can also enjoy a welcome discount and special member pricing throughout the year too.

FAQs

But What If It’s Not My Birthday Yet?

Not to worry! If it’s not your birthday quite yet you can still grab free food when you sign up for any of these free food apps.

Can You Only Get Free Stuff On Your Birthday If You Join a Rewards Club?

Most restaurants and retailers only offer free birthday stuff if you join the email list or rewards program. This isn’t always true and you can ask your restaurant host or store cashier if they offer birthday specials.

After all, how many times does the staff sing happy birthday when you go to a sit-down restaurant these days? If your answer is quite often, there’s a good chance you don’t have to join the rewards club to get a free birthday surprise.

Of course, belonging to the rewards club means a potentially more valuable birthday freebie. As a tradeoff, you’re going to receive regular emails or app notifications from the company about the latest offers and specials.

If you don’t go there on a regular basis, the birthday freebie might not be worth the hassle.

Is Purchase Necessary To Get a Birthday Freebie?

In most cases yes, you need to make a purchase to redeem your birthday coupon. You usually have to buy a meal to get your free appetizer or dessert. While some restaurants still offer free meals with no strings attached, you usually have to buy a second meal to get yours for free.

You still save money if you’re going to visit these restaurants or stores anyway, but these places of business know that free birthday gifts are an excellent way to increase business if you bring your friends and family along.

Why Are The Free Birthday Offers Different From the Description?

Variety is the spice of life. Just like you make changes in your normal routine periodically, the birthday freebies mentioned above might change without notice. Businesses change things up to get more people to join their birthday clubs by offering products you want to use.

Do Grocery Stores Have Birthday Clubs?

Your favorite grocery store might also have a birthday club that lets your children get a free treat. The grocery store might also send you free coupons and product samples as well.

The Takeaway

There are more ways to get free stuff on your birthday than you can imagine. While this list primarily focuses on national retailers and restaurants, your local mom-and-pop businesses might offer birthday freebies too.

What’s your favorite birthday freebie? Which offers have we missed?

Below I am going to walk you through the answers of how much you get for donating plasma, where is the best place to donate depending on where you live and what are some of the hacks to making the most money for your time.

The best part–you can actually make up to $400 extra cash each month by donating your own plasma!

This is the reason why donating plasma has become one of the fastest ways to make extra money each month. If you are someone who doesn’t mind getting poked with needles, this may be one of the most passive side hustles we have found.

Now, that’s a pretty good payday if you ask me, and if you help somebody with a medical need in the process, then it’s a true win-win!

Need a Little More Cash? In addition to donating plasma, you can earn even more when you share your opinion with Survey Junkie. Survey Junkie has a TrustPilot Rating of 4.5 out of 5 and over 3 million members earning cash daily!

So, if you’re willing to set aside two hours of your time at least once a month, you have a really unique opportunity to make a quick, honest buck!

How Much Do You Get Paid for Donating Plasma?

You can earn up to $50 per donation, but there are several variables:

• Individual donation center payment policy
• Is this a first test or subsequent test?
• How much plasma you can donate

Although you must weigh at least 110 pounds to donate plasma, you might not be able to donate as much as somebody that weighs 180 pounds because FDA guidelines allow heavier people to donate more plasma; talk about an unfair advantage!

Donation centers pay each donor based on the size of the donation.

So, you might only make $20 or $30 per donation instead of $50 if you weigh less and cannot physically donate as much plasma.

You’ll also get paid more for your first donation because it takes approximately two hours for your first donation because of the onboarding process.

Subsequent donations only require up to 90 minutes of your time–one hour in most instances–so you get paid less per donation, but it’s still easy money. And, some centers pay more if you have a special, high-demand protein or you are a frequent monthly donor and qualify for your center’s monthly promotions!

How Do I Donate Plasma for Money?

Contrary to popular belief, donating plasma for money isn’t exclusively for cash-strapped college students. While your local donation center might be conveniently located near college campuses, you can donate if you meet the following requirements:

• Must be between 18 and 69 years old (at least 19 years in Alabama)
• Weigh at least 110 pounds
• Clear of certain infectious diseases and have adequate hemoglobin and blood levels
• Possess a legal government ID or Social Security card to prove citizenship

Keep in mind the standards can vary from state-to-state, with some of the most common added restrictions of being tattoo or piercing free, older than the standard 18-years-old, or waiting up to weeks between donation visits.

If you meet these basic requirements, the next step is to get in the car and drive to your local donation center.

What Are the Benefits of Donating Plasma?

There are many reasons you should donate plasma:

• Help save lives
• Get paid weekly
• Flexible donation times
• It only takes an hour to donate
• Encourages you to pursue healthy behaviors
• And of course you can make money!

You’ll find out more about these benefits–especially how you can make money donating plasma–as you read through this article.

Another benefit of donating plasma besides making money and saving lives is that you can also donate blood too. Yes, you’ll have to wait eight weeks after donating whole blood before you can donate plasma again, but it’s something to keep in mind if you don’t have to rely on the regular payments from plasma donations.

How Do Plasma Centers Pay You?

The most common payment method for plasma centers is a prepaid debit card. Some donation centers offer rewards points that can be redeemed for cash or merchandise rewards.

Each donation center contracts with a different prepaid debit card provider, so you’ll need to read the payment terms and conditions to make sure your cash balance doesn’t expire. Most cards are reloadable so regular donations mean your balance will never expire, but your balance can expire if you go at least 30 days between donations or you don’t log into your rewards account in at least 180 days.

Which Plasma Donation Centers Pay The Most?

There are more than 400 plasma donation centers all across the United States and most of them are operated by the ten companies listed below. The most common payment method is a prepaid debit card.

Most of these donation centers pay a bonus of up to $50 per donation for your first five visits. If you have at least two centers in your city, take the time to call and find out how much they pay for your first visits and subsequent visits to see which center pays more long-term.

Visit a private donation center to make the most cash. Red Cross donation centers accept plasma donations in addition to blood, but they don’t offer cash payments for your donation. And, the Red Cross only let you donate once every 28 days which is another bummer if you want to make a regular weekly income by donating plasma.

The following is a list of plasma donation centers in alphabetical order, not necessarily the highest-paying. However, most centers offer similar payments and you can expect to make up to $50, on average, for your first donation.

B Positive

Maryland and New Jersey residents might live near a B Positive donation center. All payments are deposited on a B Positive Visa gift card. According to the B Positive website, all donors earn $50 for their first five donations made within the first 30 days.

What makes B Positive exciting is that they pay progressively more for each monthly donation. You might only earn $25 for your first donation each month and $45 for your eighth donation.

• Payment per donation: $50 for each of your first five donations, then $15 to $45 per donation
• Donation frequency: Twice per week with at least 24 hours between donations
• States with donation centers: MD and NJ

Biolife

There’s a good chance there’s a Biolife center near you as they serve 28 states. Payments are made on the Biolife prepaid debit card. The payment per test varies from center to center, but you usually get a bonus your second weekly test. Since your plasma is useless without the second donation within six months, Biolife gives you some added incentive to come back later in the week.

• Payment per donation: Up to $50 per donation
• Donation frequency: Twice per week with at least 24 hours between donations
• States with donation centers: AZ, AR, CO, FL, GA, IA, ID, IL, IN, MI, MN, MO, MT, NC, ND, NE, OH, OK, PA, SC, TN, TX, UT, VA, WA, WV, WI, WY

Biotest Plasma Center

Biotest Plasma collects plasma donations in 12 states. All payments are made to a reloadable prepaid MasterCard debit card. Each time you donate, Biotest loads your payment onto the card.

You can also get a refer-a-friend bonus by getting your friends and family to donate plasma too. They also have monthly sweepstakes that let you win additional cash and prizes too.

• Payment per donation: Up to $50 for your first five donations, then $35 to $45 per donation
• Donation frequency: Twice per week with at least 24 hours between donations
• States with donation centers: AR, FL, GA, IA, NC, NE, NM, OH, PA, SC, SD, TX

BPL Plasma

BPL Plasma pays up to $50 for your first five visits. How much you make after the initial donations, depends on your weight and your center’s payment policy. Seasonal promotions are offered to earn bonus payment too. The most qualifying donors will earn up to $300 per month after monthly promotions and active fees are accounted for.

The maximum donation age for BPL Plasma is 65 years old and free from excessive tattoos and piercings in the past 12 months.

• Payment per donation: Up to $50 for your first five donations and up to $300 per month
• Donation frequency: Twice per week with at least 24 hours between donations
• States with donation centers: AR, AZ, CO, FL, IL, KY, ME, MN, MO, NC, NM, OH, OK, TX

CSL Plasma

With donation centers in 35 states, CSL Plasma is also likely to have a center near you too. And, they also pay good money for your plasma and you can make up to $400 per month. Like the other donation centers, you’ll earn iGive points that can be redeemed for cash on a prepaid debit card. Plus, you can participate in the monthly promotions to earn extra points.

Unlike some of the other donation centers, your iGive points can also be redeemed for merchandise rewards if you don’t need the cash at the moment.

• Payment per donation: Up to $50 per donation
• Donation frequency: Twice per week with at least 24 hours between donations
• States with donation centers: AL, AZ, CO, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MD, MI, MN, MS, MO, NE, NC, NJ, NV, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, WA, WV, WI

Grifols

Grifols is a conglomerate of the following plasma donation brands:

• Biomat USA
• Grifols
• Plasmacare, Inc.
• Talecris

You might only make up to $200 per month which puts Grifols at the lower end of the pay scale, but according to a Grifols employee, you actually will get paid within 30 minutes via a prepaid card if you simply make it back to the room to get stuck! To earn double the income, compare the payment schedule if there’s another plasma center in your town or within driving distance as most centers accept donors that live within a 50-mile radius. On a positive note, you can make extra money by referring friends.

While it should be a non-issue unless you’re a procrastinator, Grifols requires at least 48 hours between donations. Other donation centers only require a break of at least 24 hours.

• Payment per donation: Up to $25 per donation or $200 per month
• Donation frequency: Twice per week with at least 48 hours between donations
• States with donation centers: AL, AR, AZ, CA, CO, FL, GA, IA, ID, IL, IN, KS, KY, LA, MD, MI, MN, MS, NC, NV, OH, OK, OR, PA, SD, TN, TX, UT, VA, WA, WI

Interstate Companies

The Interstate Companies have 22 plasma donation centers located in 13 states. Most of their plasma donation centers carry the Plasma Biological Services or Bio-Blood name.

When looking for a donation center on the Interstate Companies website, pay attention to what donations are accepted at your nearest center as they either accept plasma only or whole blood only.

Maximum payment varies by location, but you can expect to earn up to $50 for your first five donations, then $250 per month. Like Grifols, you must wait at least 48 hours between donations.

• Payment per donation: Up to $50 for your first five donations
• Donation frequency: Twice per week with at least 48 hours between donations
• States with donation centers: FL, IL, IN, KY, MD, MI, MO, MS, PA, TN, TX, WI

GCAM Plasma

GCAM Plasma operates donation centers in four states and you can earn up to $30 per donation after waiting 24-48 hours between donations. If you earn $30 per test, you can expect to earn approximately $240 a month by donating twice a week.

• Payment per donation: Up to $30 per donation
• Donation frequency: Twice per week with at least 24 hours between donations
• States with donation centers: CA, ID, TX, WA

KEDPlasma

Attention plasma donors in Buffalo, NY…KEDPlasma really wants your plasma if you have Rh-negative blood and live within 90 miles of Somerset Laboratories. If you meet these basic requirements, you can make a little extra cash by participating in the Anti-D program.

• Payment per donation: Up to $50 for your first five donations
• Donation frequency: Twice per week with at least 24 hours between donations
• States with donation centers: AL, FL, GA, LA, NC, SC

If not, KEDPlasma still accepts plasma donations from several states in the eastern United States. You can expect to earn up to $400 per month and receive a bonus for your first five donations. All payments are made to a Wirecard prepaid debit card.

• Payment per donation: Up to $50 for your first five donations
• Donation frequency: Twice per week with at least 24 hours between donations
• States with donation centers: AL, FL, GA, LA, NC, SC

Octapharma

Octapharma has plasma donation centers located across the country and Germany if you know anybody there that wants to become a plasma donor too.

In addition to getting paid to refer a friend to donate with Octapharma, you earn rewards points that can be redeemed for tiered rewards including express passes, gift cards, and sweepstakes entries, or a prepaid MasterCard debit card.

Payment details vary by location, but you can expect to make up to $50 for your first five donations. After that, expect to make around $300 per month or approximately $40 per subsequent donation. As a frequent donor, you can qualify for monthly bonuses too.

• Payment per donation: Up to $50 for your first five donations and $300 per month
• Donation frequency: Twice per week with at least 24 hours between donations
• States with donation centers: AL, AR, CA, FL, GA, IA, IL, IN, KS, LA, MD, MI, MN, MO, MS, NC, NE, NV, OH, OK, SC, TX, UT, VA, WA, WI

Your Local Plasma Donation Center

The ten donation centers listed above are the largest companies with a multi-state presence. There are also independent donation centers–like ADMA BioCenters in metro Atlanta– across the country that pay you for plasma donations too.

The easiest way to find your closest plasma center is searching by the keyword, “highest paying plasma donation center near me.”

If you’re lucky, you’ll have more than one option and you can call both centers to compare payouts. When I performed the web search, I found two different centers in my city that pay for plasma donations.

Taking a few seconds to explore all your options can be well worth the effort as you can make double the amount at a donation center across town.

Donate at Your Local Red Cross Chapter

If you don’t live near a plasma donation center that pays, you can still demonstrate your giving spirit by donating to your local American Red Cross. You won’t get paid, but donating plasma is still a great way to “pay it forward” to help out a neighbor.

You’ll only be able to donate plasma once every 28 days or 13 times a year, but you can still donate whole blood and blood platelets during the waiting periods.

Helpful Tips to Become a Plasma Donor

Most people just can’t walk into a plasma center and make your donation because you might faint from lack of food or dehydration. Instead of being told to come back tomorrow, follow these tips to make sure you arrive prepared and you’re allowed to donate.

In most states, you must be at least 18 years old to donate plasma; the lone exception is Alabama where you need to be at least 19 years old.

Maintain a Balanced Diet

• Eat a hearty meal and drink plenty of liquids before you donate
• Avoid a fatty or high cholesterol foods
• Don’t drink alcoholic or caffeinated beverages at least 72 hours before a donation

Getting into the habit of eating healthy might seem like a chore at first, but look at it another way; you’re getting paid to be healthy when you donate plasma.

If you don’t think it’s possible to eat healthy without breaking the bank, listen to Episode 84 of the Money Peach Podcast as Erin Chase tells you how to make every meal a $5 meal. After listening to Erin’s money-saving secrets, your plasma donations can cover most of your food bill!

Also, you will definitely want to shop with Ibotta to get a $10 cash bonus and save every time you buy groceries.

Pass a Medical Exam

Before each donation, you need to pass a basic medical exam that consists of questions about your general health, checking your blood pressure, and pricking your finger to check your iron and hemoglobin levels.

Maintaining a balanced diet also helps ensure your iron levels and blood pressure are adequate.

The testing center might prohibit you from donating in these circumstances:

• Weigh less than 110 pounds
• Insufficient iron or hemoglobin levels
• Recent tattoos or piercings
• Carry certain transmittable diseases
• Take select prescription medications
• Recently traveled outside the country

You will need to ask the center which illnesses and prescription medications disqualify you from becoming a donor.

If you have HIV, hepatitis, eczema on your arm in the donation site, diabetes controlled with medication, the donation center won’t let you donate. You also won’t be able to donate if you have been pregnant within the last six months.

If you are currently on prescription medication it may not be an automatic deal breaker, but you probably can’t donate if you take medication for acne, cold sores, infections, or vaccines and immunizations.

Never try donating plasma if you don’t feel 100% from allergies, the flu, or the common cold. You also won’t be able to donate if you currently have a sprain or stitches.

Bring Proper Documentation

You must be able to prove your identity for your first visit. In fact, the donation center staff won’t begin checking your vitals until you show you’re a legal citizen. Your individual center might have slightly different document requirements, but the most commonly required documents include:

• Social Security Card or Border Crossing Card
• Valid picture ID (driver’s license, student ID, or military ID)
• Proof of residency (bank statement or bill issued within the last three months)

Bring what documentation you normally bring when you need to renew your driver’s license or apply for a passport. After the initial donation, you may only have to bring your regular photo id to verify your identity.

Does Donating Plasma Hurt?

With each donation, you don’t get pricked with a needle not once but twice. For your plasma to be used by another, you need to make your second donation within six months so you’ll technically get pricked four times.

If you’ve donated blood before or don’t mind having blood drawn for testing, donating plasma is a very similar experience. Many donors say the needle feels like a mild bee sting; it’s not as fun as relaxing at the beach but it’s for a worthy cause.

One of your fingertips will be pricked first to test your iron and hemoglobin levels. If they’re up to par, you’ll proceed to the donation area where you will get pricked the second time by a phlebotomist in your arm to begin donating blood.

If you feel discomfort while donating plasma, immediately speak with the phlebotomist who might only need a minor adjustment to the needle or plasmapheresis machine. 

Because the plasma center is only collecting your blood plasma, the donation machine is actively separating your plasma from your blood and returns your blood with saline additive back into your body. This return process can give you a cold feeling, and it’s recommended you bring a jacket or light blanket to wear if you feel cold.

How Long Does It Take to Donate Plasma?

Your first ever plasma donation visit usually takes twice as long as your subsequent visits. One reason is all the paperwork you have to fill out before you can begin the actual donation. Until you find your groove while donating, it can also take a couple visits to acclimate to having a needle in your arm for an hour too.

Expect your first visit to take between 90 minutes and two hours, however the actual donation time will only consume an hour of that time.

For your future visits, you can expect the entire donation to last around an hour because you only have to complete a basic medical questionnaire to ensure nothing has changed since your last visit that only takes a couple minutes to complete.

Since it only takes an hour in most instances to donate plasma, this is a quick and easy side hustle you can partake in between classes, after work, or on your days off.

Can you set aside two hours of your week to potentially make $100? I can!

Bonus Hacks: How to Donate Plasma Faster

Plasma centers pay you a fixed rate based on how much you donate. It doesn’t matter if it takes you an hour or two hours, you’re only going to make $50. So do you want to make $50 or $25 an hour? If you want to make $50 an hour, you need to follow these hacks below on donation day.

Like other ways to make extra cash that pay a flat rate, how much time it takes to donate plasma is just as important as how much you make per donation. Centers pay you more when you go for your initial visits because of the extra time required, but you need to learn how to work smarter instead of harder to maximize your earnings for subsequent plasma donations.

Stay Hydrated

Not drinking enough water before you donate slows down your donation speed because your blood is “thicker” and it’s harder for the machine to collect your plasma. In fact, dehydration is one of the most common reasons for slow donations because blood plasma is 90% water.

Just remember that you only have a finite amount of time for each donation session and after a predetermined amount of time the phlebotomist will begin unhooking the collection equipment whether you’ve donated the daily limit or not.

If you’re hydrated, you can donate your full amount within the donation window but being dehydrated might only let you donate three-quarters of your donation limit and you get paid less as a result.

Remaining hydrated can be a double-edged sword. Drinking too much water can cause your blood iron levels to become too diluted and you’ll be disqualified when they check your iron and hemoglobin levels.

Squeeze a Stress Ball

Regularly squeezing your hand or a stress ball boosts circulation. The quicker your blood circulates, the sooner you donate enough plasma. Find what works best for you so you remain comfortable while donating so you don’t try to “force” the donation and actually end up donating less.

What happens if your blood doesn’t circulate quickly enough?

The machine sounds an alarm and the phlebotomist must make some quick adjustments to clear the blockage. If they can’t, you’re not able to donate plasma for the next six months!

While this scenario is the exception to the rule, don’t forget to squeeze your fists periodically during a donation to keep yourself out of the unemployment line.

Avoid Saturated Fat

Eating a greasy cheeseburger and fries before you donate can slow your plasma flow too much. This is because these two foods are high in saturated fat that clogs your veins and produce “cloudy” plasma that can clog the plasmapheresis machine. If your plasma flow is too slow, your donation session will end prematurely and you’ll be paid a reduced rate.

Avoid saturated fat at all costs by not eating these foods before you donate:

• Burgers
• Fries
• Cheese
• Milk
• Candy
• Processed foods

Instead, seek foods with unsaturated fat which can actually speed up your plasma flow and help you donate in a shorter period of time; 45 minutes instead of 60 minutes for example.

Some examples of foods with unsaturated foods that you can eat and won’t leave you hungry are:

• Avocados
• Natural, non-hydrogenated peanut butter
• Almonds
• Fish
• Beans
• Eggs

Try to buy fresh ingredients including raw fruits and vegetables instead of pre-made items you get from the grocery store or restaurant. They’re healthier overall and cheaper.

What Happens During a Plasma Donation?

If you’ve donated blood before, the entire plasma donation process is very similar.

In a nutshell, here’s how it works:

• Arrive at the donation center
• Pass the iron and hemoglobin test
• Phlebotomist connects the plasmapheresis machine to begin the donation
• Finish the donation and schedule your follow-up donation time

From start to finish, you should expect to be at the center for 60-90 minutes depending on how long it takes you to complete the paperwork and donate your plasma. The most skilled donors only need 45 minutes to make the actual donation after checking their iron and hemoglobin levels.

When donating plasma, you’re sitting in one place for about an hour. The donation center is paying you for your time, but is it possible to “double dip” and make more money?

Most centers play movies and let you watch tv, so it can be an opportune time to rest, but many centers now offer free public wifi that you can use to stream your own content, read great books, study for an exam or promotion.

Another option to increase your hourly rate is taking paid online surveys. Since the average online survey takes 15 minutes, you can complete four surveys during a single donation.

How Often Can You Donate Plasma?

You can donate plasma twice a week, but you must wait 24 to 48 hours between donations. This rest interval gives your body time to replace your plasma count. Drinking plenty of water ensures your plasma levels quickly return to their normal levels and you’ll maintain a high energy level too because coffee, tea, and soft drinks dehydrate you further.

Donating plasma isn’t as intense as donating blood because the plasmapheresis machine puts saline back into your body, but your body still has to replace the plasma you donate.

In between donations, remember to avoid junk food and sugary drinks too. And, you still need to avoid alcoholic and caffeinated beverages for at least 72 hours before your second donation as well. While you shouldn’t go hog wild after your second weekly donation, you can relax your eating habits a little more afterwards.

Like you should drink plenty of water to avoid the negative effects of dehydration, eating healthy food provides multiple benefits besides faster donation times.

When Can I Donate Plasma?

Most donation centers are open every day of the week from 7am to 7pm during the weekdays and through mid-afternoon on weekends.

You can pick the day and time that works best with your schedule whether it’s before work, after class, or during your lunch break. Some centers also provide free childcare so you can donate plasma if you bring your children along too.

Your donation center might have designated time slots for first-time donors because of the additional time required to complete the additional paperwork. Afterwards, you can pick the donation time that works best for you because you only need to set aside an hour to donate the plasma since your name’s in the computer system.

Make a Second Plasma Donation to Get Paid

There are many similarities between blood and plasma donations, but one of the largest differences is that you don’t get paid until your second plasma donation is collected.

That means you must donate plasma twice before the donation center hands you a prepaid debit card loaded with cash. In most cases, you have six months to make your second sample.

Donation centers don’t do this to be mean, but they need two separate plasma donations before your plasma is usable. Holding payment until the second donation prevents ill-intentioned hustlers from donating once and running away with the cash while the center is stuck with a useless donation.

Think of your first donation as a “security deposit” and the second donation as your monthly rent payment; you make rent each month and your landlord is kind enough to let you stay for another month.

If you earn $50 per donation, the donation center will pay you a $100 lump sum payment; $50 for the first donation and $50 for the second donation.

Remember in order to receive the new donor bonuses–$50 per donation compared to the usual $40 donation payment–you usually have to complete each donation within the first two months.

Because I’m sure you like making money and helping people in the process, you’ll have no problem making your second donation ASAP!

What Can I Do If I Am Rejected as a Plasma Donor?

Maybe you want to donate plasma but can’t at the moment because of a current medical condition, you’re pregnant, or you recently got a tattoo or piercing. Whether you’re waiting a few months to become an eligible donor or donating plasma just isn’t your cup of tea, there’s no need to worry.

Temporary Deferrals

Maybe the center gave you a temporary deferral because you don’t feel well, are still recovering from a recent medical procedure, or your iron counts were too low. Whatever the reason, follow the center’s advice on how long you should wait and if there’s anything you can do to help speed up the waiting process.

If your iron count is low, you can start consuming more iron-rich foods to boost your count. It might take a couple days, but don’t give up hope if you have a temporary deferral. Your opportunity to donate will arrive sooner than you think.

Permanent Deferrals

Maybe you’ll never be able to donate plasma because of a certain medical condition that can harm your body or the plasma recipient.

If you believe the donation assigned a permanent deferral in error, you can try to overturn the deferral by getting a second medical opinion and following the center’s appeal process. It’s worth a shot if you’re serious about donating plasma.

Alternatives to Donating Plasma

Maybe you’ve decided plasma donation isn’t for you or you need to pursue an additional side hustle on the days you aren’t donating plasma.

Thankfully, there are many different options that won’t affect your donor status.

Flexible Side Hustles

Donating plasma might sound appealing because of the flexible donation times. All you have to do is set aside two hours a week that are most convenient for you; those are the best side hustle options because you name your own hours.

While this is only a partial list of flexible side hustles, you should consider these options first:

• Online surveys on Survey Junkie or Swagbucks
• Driving for Uber 
• Delivering food with UberEats or DoorDash
• Freelance writing
• Graphic design
• Transcribe two-minute audio recordings

You can easily do these side hustles in addition to donating plasma. Several of these online-based hustles can be pursued while you’re donating. If you’re a rideshare driver, you can donate plasma between gigs which means you don’t have to make a special trip to the donation center because you’re passing by it anyways.

Alright, Now You Ready to Donate Plasma and Make Money!

I think we all understand donating plasma won’t make us rich, but it’s a great, flexible way to supplement our regular income. And, we get the opportunity to pass on the gift of life in the process.

In fact, if you really break it down–donating plasma is one of the few ways you can legally “sell” your body for medical purposes and get paid!

If you’re ready to make some money by donating plasma, don’t wait. Your local plasma center is waiting to schedule your first donation!

Now you can actually see how much Airbnb hosts are earning in your city. This is a great way to offset the costs of your rent and even pay our rent completely!

Let’s face it, in big cities, sometimes it feels like your only option to pay less in rent is to move to a less-than-desirable part of town. Before you resort to this option, give these suggestions a try first.

Thankfully, you have many options to slash your housing costs. When it feels like most of your take-home pay is used to make rent, these opportunities can be the financial lifeline you need most.

The Best Ways to Get Free Rent

It doesn’t matter if you’re a recent college grad that’s also juggling student loans or a working professional only needing a couple more years to finally afford to buy a home, or an aspiring world traveling.

Housing no longer has to consume a large portion of your income. Using the strategies below makes it possible to improve your immediate financial situation and achieve long-term financial goals too.

1. Become an Airbnb Host

One of the easiest options is to become an Airbnb host. Because you’re not renting to full-time tenants, you can choose which dates are available for rent. And, you can meet some fun guests in the process.

You’ll have more flexibility if you own your home because most rental property agreements forbid short-term stays. It’s also a good idea to check your city or subdivision regulations to verify Airbnb properties are authorized.

Here are several examples of how you can rent your house on Airbnb:

• Spare bedroom
• Furnished basement
• On-property guest house
• Your entire house when you leave town

If you also happen to have access to a second property, you can also turn that into an Airbnb rental property too. Maybe it’s a family member’s old house or your spouse’s house. The Airbnb rent can help pay for your housing costs, and you don’t have to rent out your own living quarters.

Airbnb also offers its hosts these rental protections:

• $1,000,000 coverage for accidental damage
• Host Protection Insurance for guest injury or property damage

Even with these protections, you still want to make sure you maintain an active property insurance policy with liability coverage.

2. Become a Live-In Nanny or Au Pair

Another possibility is becoming a live-in nanny for a family. If you’re a caring for their children full-time, it can be easier to live on premise. Not only do you earn a full-time income, but you can also have housing included as a benefit.

Searching for jobs on Care.com is one place to find local opportunities.  You can also try asking your friends. If somebody has a connection with a family that’s moving abroad for work, you can also get paid to travel the world! Even if they live stateside, they may also pay to bring you along on vacation.

As with any job, make sure you set expectations with the family before you accept the position. Some of the topics you might discuss include:

• Daily work schedule
• Housekeeping responsibilities besides caring for children
• When you’re “off call”
• What living expenses you pay for (i.e., food, internet, trips)

Because you’re living in your employer’s house, it can sometimes feel like you must always be on call. This isn’t the case. You still have the flexibility to run errands or visit friends when you’re not working so you can still have a life outside of work.

3. Share a Home With the Elderly

Younger people can live with an elderly person for free thanks to elderly home sharing. Maybe you care for them, run errands and buy groceries, or maintain the property. Home sharing between young and elderly singles is a growing trend in large cities where young people struggle to pay high rent or even afford to buy a home.

In exchange for getting free rent, you agree to help the elderly homeowner with weekly chores. For example, you might commit to helping out 10 hours a week around the house to get a free room.

Elderly home sharing can take many different approaches. A second option is for elderly singles to share a house and each tenant has their own bedroom. If there are five bedrooms, five people to share the house to greatly reduce living expenses.

4. Housesit for Friends

You may have a family friend or connection that is moving out of town for business or taking a long sabbatical. It can be for several weeks or a couple years. Their house is going to be vacant, however they don’t want to sell or rent it. Living in their house ensures the grounds are maintained and you get a free place to sleep too.

It’s not uncommon to live in a house rent-free when the owner’s mortgage is paid for. You still might have to pay utilities, but it’s better than paying rent too.

When you don’t have anybody in your network to house-sit for, you can still connect with homeowners on Trusted Housesitters.

5. Petsit for Traveling Owners

If you rent, your landlord probably has restrictions on the size and number of animals you can have. So, you may have to petsit by staying at a pet owner’s house while they travel. Not every pet owner wants to board their animal, but keep them in familiar surroundings instead. This is where you come in to save the day!

Owning a home provides more pet sitting opportunities. Boarding pets is the highest income potential when it comes to caring for pets, but it’s not the only way. You can also run a doggie daycare if you work from home and don’t want to keep them overnight.

For any pet sitting option, connect with pet owners on Care.com.

6. Sublet Your Living Space

Subletting is another long-standing way to make money from your current dwelling when you’re grandfathered into a lower rental rate than new tenants have to pay. Maybe you pay $700 a month, but a new tenant has to pay $1,000 for a similar unit. You can charge slightly less than the current market rate and pocket the profit.

This is a perfect option for college students on summer break and traveling professionals. You don’t have to terminate your lease and find a storage space for all your stuff and somebody pays the rent for the months you’re out of town.

Other people sublet their old apartment when they outgrow it and use the subletting proceeds to defray the rent for their new dig. For example, you can sublet the studio apartment you currently live in so you can afford the higher rent payment for a two bedroom unit.

Check your lease agreement to see if subletting is allowed. Keep in mind that you’re responsible for any damages caused by your subtenants because the official lease agreement is still in your name. Finding trustworthy subletter should be a top priority so you don’t lose all your earnings to property repair costs.

To find a subletter, you can first ask your friends or family for leads. Never forget that word-of-mouth referrals are almost always your best option. You can also advertise your space on some of the following online classified sites:

• Craigslist
• Facebook
• Trulia

When you find somebody, require a down payment and also consider writing your own lease agreement. This agreement sets upfront expectations for the agreed rent rate and their responsibilities. You may also be required to notify the landlord that somebody else is occupying your apartment for a short period of time.

7. Buy a Duplex Rental Property

If you want to scratch homeowner and landlord off your list in a single swoop, buy a duplex. Some savvy entrepreneurs call this tactic “house hacking.”

You can live in one half and your tenant’s rent payment can cover your mortgage payment. Or if you choose to remain a renter yourself, you can rent both sides of the duplex to pay your rent.

When you’re a renting your home for the first time, there are a few ropes you need to learn. Making a game plan before you accept your first tenant can make the rental process easier.

Learn how to build a real estate empire: Listen to Coach Carson on the Money Peach Podcast Episode 73 discuss his secrets to basic real estate investing.

8. Add an Extra Roommate (or Two)

If you have a spare bedroom, put it to use by finding another roommate. This can be a better option if you don’t live in an Airbnb-friendly complex or you need a consistent income source.

Although you might not receive as much free rent money, splitting your monthly rent payment in half is an instant pay raise. Don’t forget that adding additional roommates reduces your rent costs even more if you have multiple bedrooms.

This option can also be easier than subletting your apartment because you’re still living in the apartment full-time. Landlords prefer certainty and are more flexible knowing that the tenant who signed the lease will still be on the premises.

You can make these arrangements as casual or formal as you desire. It can also be a good idea to draft a written agreement to make sure there’s no confusion on who pays which expenses, to make sure you still get free rent.

9. Live in a Camper or Van

One of the greatest advantages of renting is that you have flexibility in where you live! When your lease ends, you can simply move out penalty-free. You can use this opportunity to upgrade to a better neighborhood, or you can use your rent money to scratch items off your bucket list.

If you plan on taking that epic road trip but don’t think you can afford it, you should follow the example of Stephanie and Nate Yarbrough. They might live in a van, but they also tour the country and also work from anywhere with an internet connection as “digital nomads.”

Not having to pay rent means you can afford to travel. If you can keep your belongings with a family member, you don’t have have to rent a storage locker either!

Although you can pay to stay at campgrounds, it’s also possible to camp for free. Finding free campsites lets you explore some of the most scenic areas in the country. And, free camping also means that you have more cash to spend on your road trip to see more states.

Are you a glamper? If you need more spacious living quarters, you can also spring for a small RV like Michelle Schroeder-Gardner. Learn how she and her husband live full-time in their RV on Episode 62 of the Money Peach Podcast.

10. Work on a Cruise Ship

Some people consider going on a cruise as the ultimate vacation idea. After all, can you think of an easier way to visit the Caribbean or Alaska in a relaxing manner?

Because cruise ships are essentially floating cities, there are many roles you can fill working onboard a cruise liner. Some of the possibilities include:

• Food Service
• Cruise Director
• Entertainment
• Housekeeping
• IT Officer
• Maintenance
• Medical Staff
• Photography
• Retail
• Security Officer

If you have experience in these career fields and love to travel, why not apply? Living aboard a cruise ship can truly be a once-in-a-lifetime opportunity. Since you’re working onboard the ship, you can have free living quarters. You also have the chance to forge relationships with staff and guests.

11. Work for a Travel Excursion Company

Another awesome way to get your foot in the tourism niche and work at different travel destinations is to browse the listings on CoolWorks.

Here are some of the potential locations you can work:

• Alaska
• National Parks
• Ski Resorts
• Five-Star Hotels and Resorts
• Campgrounds
• The Beach

Each location has different job opportunities, but some of the most exciting include being a zip line tour guide or driving a dog sled. You can also find positions in critical positions like food service, transportation, property maintenance, and desk staff too.

Once again, you don’t have to be a local resident to work at destinations most people only dream of visiting. You already have the skills, so now’s the time to join the adventure!

12. Work at a Hostel

Hostels are more casual than your run-of-the-mill motel chains. That means you’re more likely to live rent-free in a room if you work there. This can be an easy money hack if you live in a big city with expensive rents or you want to be an expat and live abroad. In other words, you can live in a hotel for free in the U.S. or in a foreign country.

If you work part-time at the hostel, you still earn a steady income which you can use to pay for your basic living expenses and enjoy your new destination.

13. Become an Apartment Property Manager

Large apartment complexes may also be willing to offer free rent if you work in the leasing office or on the repair team. You can also walk to work so you won’t have to pay transportation costs either! And, you may also qualify for employer benefits too!

You can find these positions on online job boards like Indeed or Craigslist for a “resident manager.” Another option is asking the leasing office if they have any openings. Since most apartment complexes are owned by a large management company, they usually have at least one sister complex in most cities.

To qualify for a live-in property management position, most apartments do require at least one year of property management experience.

14. Work for a Community Organization

Some community organizations like abuse shelters and recovery homes offer on-site lodging for staff members. Although the house residents might constantly change, staff members need to remain on-site at all times. Whether you work inside the house or maintain the property grounds, your services are needed and give the residents hope.

Being able to help others is a very rewarding experience but it isn’t always the most financially lucrative career option. With your housing costs paid for, you can focus on doing what you love and excel at too.

15. Serve as a College Resident Advisor

Getting free rent isn’t exclusively for working adults. In fact, being a resident advisor is one of the most rewarding college side hustles if you want to work on-campus.

As an R.A., you get free rent and you can develop leadership skills by supporting incoming freshman and other students with their qualms. Being a resident advisor also means you can build lifelong connections and friendships that your classmates miss out on.

Once you graduate, you may also decide to eventually become a full-time resident director. These positions usually live on-campus full-time and supervise student resident advisors. And, you also get free housing too!

16. Become an AmeriCorps Volunteer

As an AmeriCorps volunteer, you can help serve large and small American communities. There are three different AmeriCorps programs you can apply for:

• National Civilian Community Corps (NCCC)
• State and National
• VISTA

Each program offers housing stipends that help you live rent-free. Your best options for free housing will be the NCCC or VISTA programs.

You must be at least 18 years old to apply for these programs. Most volunteer terms last between 10 and 12 months. Your service hours can also repay your federal student loans too.

17. Volunteer Abroad

A fun possibility to live abroad rent-free is volunteering to live with a family. Going abroad can be the perfect opportunity if you’re a nomad and don’t have a family yet. The most flexible option is going to volunteer for different projects on Workaway. Some of the possibilities include:

• Teaching English
• Organic Gardening
• Organizing Sports Leagues
• Volunteering at Hostels

Most assignments require a minimum one-month commitment.   However, this can be a fun way to volunteer on a seasonal basis to travel the world. Some assignments only accept one worker, but other places accept several volunteers which can be the perfect experience for couples!

18. Join the Peace Corps

Another international opportunity to consider is joining the Peace Corps. The typical Peace Corps assignment lasts two years, so you’ll need more flexibility. Like AmeriCorps, you can also receive federal student loan payment assistance. After your two-year stint finishes, you also receive an $8,000 cash stipend to help transition back into the “real world.”

The Peace Corps is going to be one of the most time-intensive ways to get free rent, but you will gain invaluable life experience. If you want to become fluent in a foreign language, being a Peace Corps lets you live the language alongside the locals. In the process, you can help improve their local communities.

19. Volunteer on a Farm

There are many ways you can learn life skills that can provide a living for your entire working career. One way is to volunteer on an organic farm to learn the trade without large upfront expenses. WWOOF-USA is one of the best places to strengthen your green thumb at one of their 2,349 farms.

Some of the handy skills you can learn include:

• Growing organic produce
• Animal husbandry
• Making wine
• Building straw houses

You can volunteer on a farm in the mainland U.S., Hawaii, and even the U.S. Virgin Islands and Puerto Rico. Many farms even let you bring your family with you so this isn’t a “singles only” volunteer opportunity.

Although you won’t get paid for your hours, most volunteers work a half-day to get free rent. You can use the remaining time to start a side hustle to pay for your other living expenses.

20. Move In With Another Family Member

You can also move into another family member’s house. This is a practical solution when you need to be closer to your job, or moving back home isn’t an option. Since you already know your family, you don’t have to worry about roommate horror stories if you share an apartment with strangers.

Family members might also be more flexible with offering free rent too. You may still have to help out around the house and maybe split utilities, but you’re still saving money.

21. Move Back Home

If none of the other options is a good fit for your circumstances, you can always move back home. Moving home can have many benefits as you’ve already lived at home before and know what to expect.

Keep in mind, that moving back home doesn’t automatically mean you’re a “boomerang child.” We moved into my in-laws’ house while we built our house and my wife and I launched our self-employment careers. Taking an adult gap year would have been virtually impossible if we didn’t move back home.

Instead of moving back home so you can play video games instead of working, make a plan to use this life season to improve your quality of life. You’ll be glad you did!

Tips on Getting Free Rent

You’re most likely familiar with the expression, “There’s no such thing as a free lunch.” In all of these suggestions, you are either bartering your skills for free room and board, or you need to claim taxable income on your rental income.

It’s not every day that the opportunity arises to get free rent, so you should follow these suggestions to maximize your reduced living expenses.

Make a Plan to Maximize Your Free Rent

Do you know how you’re going to spend your new disposable income? You might not be able to live rent-free for your entire life, so take action now to maximize your gains.

For example, you can use the extra cash for the following reasons:

• Extra debt payments
• Investing
• Saving for a mortgage down payment

Pursue a “Once In A Lifetime Opportunity”

You don’t always have to pursue one of the options because you’re struggling to pay the bills. If you don’t have a family yet, you have a lot more flexibility to live rent free and have fun in the process.

After all, how many people do you know dream of living in Europe, Hawaii, or the mountains but can only afford a one-week vacation? By volunteering or even taking a seasonal job, you can build memories that many people can’t because they need a steady income to pay the bills.

While you might not get rich from these endeavors, you still have a roof over your head and plenty of food to eat. Flexibility is possibility the best benefit of living a frugal! Not having a rent payment makes it even easier to pursue your dreams.

Set Money Aside for Taxes

If you receive a cash stipend or rental income, make sure you set aside enough money to cover your tax bill. As long as you plan to give Uncle Sam some of this money beforehand, you won’t be surprised with a large tax bill.

As an Airbnb host or landlord, keep a running ledger of deductible expenses. These deductions help minimize your tax bill so you can keep more of the profit.

Carry Renters Insurance

Whether or not you plan on subletting or adding a roommate, you need to have renter’s insurance. Some landlords require coverage at all times, even if you’re the sole tenant. Most policies only cost about $10 a month for reasonable coverage amounts.

Renters insurance protects you against the following events:

• Property damage from fire, theft, building collapse, etc.
• Natural disasters
• Bodily injury to guests and tenants

Even if somebody visiting your apartment accidentally gets injured, you can still be held liable for their medical bills. For peace of mind, you might open a policy for life’s unexpected moments.

Summary

As you see, there are many different ways you can live rent-free. Whether you want to take a mini-retirement or need to regain your financial footing, you have plenty of domestic and international options. Housing is the largest monthly expense for many families but it doesn’t have to be when you pursue one of these suggestions.

Have you enjoyed free rent in the past? What will you do to get free rent in the future?

Now is a great time to take advantage of the extremely low interest rates. Pay off your mortgage faster and save thousands by refinancing your current loan into a rock-bottom interest rate!

The tradeoff comes down to reaching debt freedom sooner, or having a larger investment portfolio when you retire.

The million dollar question becomes:

Should I pay down the mortgage faster or invest more in the market?

Advantages of Paying Your Mortgage Early

Let’s start off with the obvious and work our way down to the nitty gritty of mortgage freedom.

Absolute Debt Freedom

The largest advantage of paying down your mortgage early is you own your house sooner. Paying off your mortgage (or any loan) early means you save tens of thousands of dollars in interest. To see what this looks like for you, you can enter in your own mortgage stats into this mortgage calculator and see how much you can save by contributing an extra amount each month. Even as little as $100 extra every month, is still quite a bit of savings over the life of your loan.

Bonus: If you didn’t have enough to make the 20% down payment when purchasing your home, extra payments will also help eliminate your private mortgage insurance earlier, and therefore save thousands of dollars in insurance premiums you are paying to the bank to protect the bank from….well…..you.

The Peace of Mind

What’s one of the largest recurring expenses in your life?

Your mortgage payment.

Once you pay off the mortgage, you can take that monthly payment and redirect it towards your investments. Obviously you did miss out on compound interest while paying down your mortgage, but remember you also saved a bunch of money by eliminating the interest paid on your loan early.

And don’t forget once you pay off your mortgage, you will no longer have the ability to deduct the mortgage interest come tax time. However, more than likely you are better off with the savings in interest versus any tax savings you get from the mortgage tax deduction.

Here’s an Example:

Let’s assume you earn $50,000 per year and you owe $200,000 on your mortgage at 4.5 percent interest. Therefore you would pay roughly $9,000 in mortgage interest and would then deduct that amount from your taxable income. The result is instead of getting taxed on $50,000 this year, you would only be taxed on $41,000.

This puts you in the 25 percent tax bracket and since you lowered your taxable income by $9,000 with the deduction from the mortgage interest, you will save $2,250 come tax time.

However, once your house is paid off this deduction goes away, which is why the majority of people think it’s a good idea to keep your mortgage for the deduction.

Why are they wrong?

Yes, it’s true you are losing out on the tax deduction by paying off your mortgage earlier. But, you are also avoiding paying any mortgage interest as well. The result is you are now paying the government $2,250 versus paying the bank $9,000.

Here’s another way to think about it: You have the choice to owe Sam $2,250 or owe Bob $9,000. I think it makes sense to pay Sam and save, invest, or do whatever you want with the money you didn’t pay Bob 🙂

Reminder: You must itemize your taxes if you plan on deducting your mortgage interest.

Disadvantages of Paying Your Mortgage Early

But what about some of the disadvantages of paying off mortgage early? Or are there times where I should delay early mortgage freedom?

Can You Afford an Emergency?

It can be real easy to raid your emergency fund or divert savings to pay off your mortgage early. If an unexpected event happens such as losing your job or getting hospitalized, you might have to pull from your emergency fund to pay your bills. Investments however can be sold off instantly (non-retirement investments) which gives you immediate access to cash when you need it.

If the majority of your money is in the equity in your house, you potentially could end up having to take out a loan against your home to pay the bills. Therefore, it’s imperative to have an emergency fund before you start making any extra mortgage payments or investments.

Don’t Maximize Your Peak Investing Years

The #1 investing secret is time.

It’s what allows a 20-year old who invests less overall to retire with more than somebody waiting until their 30s to start investing. By making extra mortgage payments, you might not have as much money as you would if you invested more in your younger years.

Utilize this Investment Calculator to see how much your investments can grow over time. Then compare that amount to how much money you can save in interest by making extra mortgage payments to help you make your decision.

Advantages of Making Extra Investments

Overall Market Returns Are Higher Than Mortgage Interest Rates

The current national average 30-year fixed mortgage rate is approximately 3.84%. If you had invested in the S&P 500 for the previous 5 years, your average annual return would have been 5.54%. That’s almost 2% more each year your money can earn. And, if the market performs better in the upcoming years, the income potential gets even higher by investing your extra income.

Let’s do some quick math comparing how much money you can save in interest or earn from investments.

Extra Mortgage Payments

Your minimum monthly payment (principal and interest) will be $1,170 for a $250,000 30-year fixed rate mortgage with a 3.84% interest rate. Did you know you will pay approximately $171,000 in interest if you take all 30 years to pay the mortgage? Ouch!

However, by making one extra half mortgage payment each month ($1,755 monthly payment versus $1,170 monthly payment), your house will be paid off 14 years earlier and you will save $87,000 in interest!

Extra Investments

What if instead of making the extra half payment each month, you decide to make the minimum mortgage payment and invest that same amount instead?

If you invest the additional $585 payment every year for 14 years (the time it would take to pay off your mortgage with the added monthly amount), you will have $178,997 in the end.

This amount is determined from the $98,865 you invested and the $80,132 in interest assuming a eight percent annual rate of return.

In this example, it appears the extra investments would return $80,132 while the same amount applied to your mortgage will save you $87,000.

Keep this in mind the RISK factor.

The interest rate on your mortgage is locked if you have a fixed rate mortgage. On the other hand, there are no guarantees with investing. We hope, pray, and assume we earn an eight percent annual return over 14 years, but we can’t guarantee it.

Here’s the same example above with an investment rate of return of:

Two percent: $15,246

Four percent: $33,326

Six percent: $54,741

Eight percent: $80,132

Ten percent: $110,241

Takeaway: You must calculate the RISK factor

Potentially Maximize 401k & IRA Contributions

By making extra monthly investments, you have the ability to max out your IRA & 401k contributions. Currently the annual maximums (2019) are $6,000 for IRAs and $19,000 for 401k plans. This means you are not only earning compound interest (passive income) but more of it is saved in tax-favored accounts. By waiting to invest, any extra investments might be fully taxable if you have already maxed out your retirement accounts for the year.

Related: What in the World is a ROTH IRA?

Disadvantages of Making Extra Investments

The Markets Could Tank

If the stock market enters a bear market (slow moving and downward market), your investments might actually lose money for a few years. Not only do you lose money, but don’t forget you still have a monthly mortgage payment to make. History tells us the markets will move up and down in a cyclical fashion, but once your mortgage is gone, you are free from the stress of making a mortgage payment in a bear market with a down economy.

You Still Have Debt

Making extra investments can be a wise long-term financial move. Especially if you can still retire debt-free and afford to retire on time. However, some people just simply hate remaining in debt & having to make yet another monthly payment for the next 15 to 30 years. If you want the peace of mind, making extra mortgage payments today means a lower cost of living sooner than later.

What Should You Do?

Deciding to make extra mortgage payments or invest in the market depends on several factors including your current income and debts, tolerance for debt, and your short-term and long-term financial vision.

Make Extra Mortgage Payments

It is better to make extra mortgage payments when:

• You want to become debt-free as quickly as possible
• Most of your current paycheck goes to monthly loan payments (credit cards, car loans, house)
• You are already meeting your employer 401k match and/or saving at least 15% for retirement and plan to make extra investments once your mortgage is paid off.

As you are already in the mindset of making extra mortgage payments, use that money to make extra investments once you pay off the mortgage.

Make Investments

You might pursue extra investments if:

• You view your current mortgage rate as “cheap money” because the stock market will yield a higher amount over the life of your mortgage.
• Want to keep your disposable income “liquid” as investments can be sold almost immediately while your house can sit on the market for months.

Nobody can predict the performance of the investment markets. If you don’t plan on using the extra investment money in the next five years, you can potentially earn more money than the interest you will pay on a 15-year or 30-year mortgage. You will have higher monthly expenses for a longer timeframe but you may have a larger net worth in retirement.

Putting All of this Together

If you decide to make extra mortgage payments, make sure you don’t stop investing altogether. Your first priority should be getting out of debt as soon as possible, but also take advantage of your employer retirement benefits such as matching 401k contributions or even contributing $100 a month to a ROTH IRA. The bottom line is you still need to plan for the future.

Extra investments, in lieu of extra mortgage payments, will set you up for financial security in the coming decades. But, you can’t ignore the risk factor. There is an old saying in investing from Mark Twain that goes:

“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February.“

There will never be a black and white answer when it comes to the million dollar question of mortgage versus investing. The bottom line is to simply understand how to get to your own answer based on your life and your money.

Good luck!

The first motion picture movie theater opened in 1905 in Pittsburgh, Pennsylvania and a single admission ticket only cost a nickel.

Going to the movies on a Friday night has been an American pastime ever since, but with tickets costing as much as $9 per person, many families can’t afford to go to the theater on a regular basis.

Thankfully, free movie websites make watching your favorite movies possible by saving you some dough too!

You may still want hit up the theater for the opening night to watch the next Star Wars or comic book hero installment, but you can also watch movies from the comfort of your house most weeks of the year. Since you probably have a flat screen TV at home, high speed internet, and a stash of snacks in the pantry, the viewing experience may just be more enjoyable at your very own “private” theater.

Finally, you should consider these free movie websites if you need a break from the Netflix or Hulu catalogs which are extensive, but don’t have everything.

Try These Free Movie Websites First

Most “free movie websites” are scams or illegal. You’re going to want to stay away from sites like BitTorrent that download small packets of data from various users so you eventually download the entire video for free.

This technology isn’t new, if you want to learn a lesson in Internet History 101, research the history of Napster which was the pioneer of free media sharing sites.

The sites we’re going to mention in this list are legal and you don’t have to worry about getting scammed or breaking the law.

Most of the sites offer classic movies that belong in the public domain but you can still watch new movies for free too. For the best selection of newer movies, visit one of the movie websites listed here first.

Money Hack: Earn up to $50 in AMC Movie passes by sharing your opinion with Swagbucks – one the most trusted survey sites with a Trust Pilot rating of 8.3 out of 10.

1. Crackle

If you own a Roku Express device, you already have a few apps pre-installed that you can use to stream content directly from your computer. One of the free streaming apps that you should check out first is Crackle, which contains the Sony Pictures TV and movies catalog.

You can watch newer releases like Fury or Zookeeper, or classics that you watched as a child including Look Who’s Talking or the original Karate Kid.

When you don’t want to watch a full feature film, you can also watch classic and current TV series such as:

• All in the Family
• Who’s the Boss?
• Community
• Dr. Ken

Get the Crackle Apps Here:

• Crackle TV App (iOS)

• Crackle TV App (Google Play)

2. TubiTV

With more than 7,439 movie and TV titles from Paramount Pictures, Lionsgate, MGM and other large motion pictures studios, tubiTV is definitely worth a look. You can also watch these titles on virtually any device with the downloadable app that helps give tubiTV two thumbs up! Or does that rating system only apply to movies themselves?

Because tubiTV has so many titles you could call it the “Netflix of free movie sites.” It features new releases, old classics, and movies or TV shows that never blipped on your radar before.

You can quickly sort movies by genre, new releases, recently added, or going away soon.

How does tubiTV offer so many movies for free? You have to watch ads in between. While this can be a small nuisance, the movie is free and it’s still better than watching it on live cable TV when you have to sit through the entire three to five-minute commercial break.

Get the tubiTV Apps Here:

• tubiTV App (iOS)

• tubiTV App (Google Play)

3. Vudu

Vudu offers free movies and TV shows with advertisements. Once again, these ads might be a hassle but it’s the cost of being able to watch newer movies for free before they enter the public domain. And, these ad-supported streaming platforms also offer apps that let you watch a movie directly on your TV or mobile device in full screen.

Not every movie on Vudu is free, however. Click their “Movies on Us” tab to navigate the free movies section. If there’s a movie you want to see without in-movie ads, you can see how much it costs to rent or own.

Get the Vudu Apps Here:

• Vudu App (iOS)

• Vudu App (Google Play)

4. Pluto TV

Pluto TV offers 75 channels for live TV, movies, and internet videos. You can watch live TV for free without creating an account, but you’ll have to register to watch movies for free. If you’re looking to cut the cord, Pluto can be an option worth considering to watch those specialized channels that you might only get with a premium cable package.

Regarding free movies, you’ll need to browse through the different channel lineups to see what you can watch with commercials. You won’t be able to watch content on-demand, so Pluto TV will feel a lot like flipping through the channels of your current cable TV or satellite provider as you scroll through the channel guide and click on the channel you want to watch.

It’s possible to stream Pluto TV on your computer, mobile device, or your TV when you use a streaming device that accesses the Pluto TV app.

Get the Pluto Apps Here:

• Pluto TV App (iOS)

• Pluto TV App (Google Play)

5. Popcornflix

The mission statement of Popcornflix is “Great Movies. Free.”

Since they’re sponsored by the largest independent distributor of motion pictures with a catalog containing 1,500 movies, it’s safe to say that Popcornflix is doing a good job at living up to their goal of being a premier free movie website.

Popcornflix offers old and new movies in every genre and some of their most popular options include John Wayne’s Stagecoach, Clear and Present Danger starring Harrison Ford, and Steve Austin in Tactical Force.

You can stream Popcornflix online or with one of the following devices via the downloadable app:

• Roku
• Apple TV
• Amazon
• Xbox
• Android and Apple mobile devices

Get the Popcornflix Apps Here:

• Popcornflix App (iOS)

• Popcornflix App (Google Play)

6. MoviesFoundOnline.com

MoviesFoundOnline offers a surprisingly wide selection of movies that have been released since 1997. Don’t worry, classic movie fans will still find plenty of movies that are from the 1940s or earlier like Gulliver’s Travels (1939) or Alfred Hitchcock’s The Man Who Knew Too Much (1934).

Some of the feature films you might enjoy include Smokey and the Bandit or G.I. Joe: Retaliation.

Besides feature films, you might also enjoy some of the other digital content including:

• Documentaries
• TV series
• Short films
• Animations
• Comedy
• Viral videos

The one downside is that you must either stream the movie from your computer or download it as MoviesFoundOnline doesn’t have an app.

7. YouTube

YouTube is for more than watching the latest viral videos.

You can also watch a large collection of movies for free, the only catch is that the playback speed, audio or video quality, or an abridged runtime is used to avoid copyright infringement. If you want to watch the actual film, you can rent the movie for $2.99 in standard definition and $3.99 for high definition quality.

8. Classic Cinema Online

Patrons of Classic Cinema Online can enjoy movies from the 1960s and earlier. You may even decide to watch a silent film, just like the first moviegoers did at the Nickelodeon theater in 1905!

Classic Cinema Online doesn’t have the largest movie catalog, but it’s probably the most family-friendly of the free movie websites listed in this post. Browsing through the catalog, you’ll find movies starring the likes of John Wayne, Abbott and Costello, and Cary Grant.

You’ll have the best success watching the movies on your computer as most movies stream from an embedded YouTube screen.

9. Internet Archive

The Internet Archive has a wide collection of classic films that you might enjoy for the following categories:

• Film noir
• Charlie Chaplin
• Three Stooges
• Silent movies

There’s also a collection of short films, trailers, and TV shows–both old and recent–that you might like as well. You’ll have to sift through what’s good and what doesn’t interest you as there are some off-the-wall videos you probably won’t find anywhere else, or didn’t even know they existed.

Internet Archive has a few adult-only titles so you won’t want children browsing this site without parental supervision.

10. Retrovision

Retrovision offers classic movies and TV for most movie genres and a few hit TV shows including:

• The Beverly Hillbillies
• Bonanza
• Dragnet
• The Lucy Show

You can either stream online watching the movie within your internet browser or with the Android app on your mobile device.

Get the Retrovision App Here:

• Retrovision App (Google Play Only)

11. Open Culture

Open Culture offers 1,150 free movies with most being classic American films from the 1960s and earlier. There are also several foreign films available to watch too; Korean movies in particular.

If you’re looking to start a new hobby, you can also use Open Culture to learn a foreign language, learn a new skill with free online courses, and also listening to over 900 free audiobooks.

12. Top Documentary Films

Are you ready to learn something new? Top Documentary Films offers hundreds of documentary films on almost any topic, including many documentaries that have been produced in the last year.

If you want to brush up on history, health, conspiracy theories, and the performing arts–just to name a few of the possibilities–to help you learn while you’re entertained.

If you have children at home, you might even enjoy the National Geographic documentaries available here too.

13. Viewster

Viewster specializes in anime movies, but also offers a few other genres too including gaming and comedy. With such a focused movie catalog, Viewster might not be your first option if you want a full feature film. But, Viewster offers content that you won’t find at many of the other free movie websites that focus more on the public domain movie database that primarily consists of movies from the 1960s or before.

14. Overdrive

Your local library might partner with Overdrive, an online platform that lets you rent movies, ebooks, and audiobooks for free. The catalog isn’t the biggest and you might have to reserve a title and wait your turn, but it’s free and offers a selection of family-friendly content that you won’t find at some of the other places.

You can see visit your local library and ask if they offer free online movies, or you might find a link on their website too.

15. SnagFilms

Indie film lovers will enjoy Snagfilms for fictional movies and documentaries. You can also watch classic movies that belong in the public domain too.

If you want to try watching something different tonight, SnagFilms fits the bill because they offer many titles that you probably won’t see in many other places because most of these movies are produced by independent studios.

16. Veoh

Veoh lets you watch free movies from all over the world. You will need to create an account to begin watching movies to begin searching for something to watch tonight for almost any movie genre.

17. Vimeo

Vimeo offers a small free movie catalog with the “Staff Picks” section. Many of these videos are only five minutes or less and are very eclectic so you won’t be watching the next epic blockbuster that will redefine the way Hollywood produces movies for the next generation. But, you can watch short movies that can get your brain thinking and maybe seeing a video before it goes viral on social media.

18. Yidio

Yidio offers a free movie section, but it’s more like a movie streaming search engine to see where you can watch a title online for free or for a small fee. Using Yidio can help you save time looking for free movies instead of spending half the evening looking for the perfect title and then it’s too late to either start the movie or watch it in entirety.

Alternatives to Free Movie Sites (Besides Netflix)

You might decide that a free movie website isn’t going to fully replace going to the movie theater, but you’re tired of your current Netflix subscription. These movie websites cost money, but they still offer high-quality movies at affordable prices.

19. Hulu

Maybe you joined Hulu with Live TV to save money by streaming your cable TV over your high speed internet connection.

What you might not realize is that you also get access to the entire Hulu catalog to watch almost any TV show or movie on-demand. Because the various national TV networks–ABC, NBC, Fox–all own a portion of Hulu, you might find the most diverse movie catalog here. See, these three TV networks also produce full feature movies through their parent companies to captivate your mind on the flatscreen and silver screen.

20. Pureflix

Do you want to stream movies without worrying about the inappropriate content you don’t want your children to see?

Pureflix is one of the best streaming platforms to watch Christian and family-friendly movies, TV shows, and documentaries. You also get a free 30-day trial to test drive PureFlix before you must commit to a monthly or annual subscription plan as well.

21. Amazon Prime

Maybe you joined Amazon Prime for the free, two-day shipping. One of the other fringe benefits of Prime membership is free movies and TV shows.

Like Netflix and Hulu, Amazon is also creating their own exclusive content that you won’t find anywhere else including the movie store, theater, or premium cable TV channels like HBO or Starz.

22. Lifetime Movie Club

If you’re only keeping your cable plan because of Lifetime, you might be able to cancel it by joining the Lifetime Movie Club. For about four bucks a month, you can watch Lifetime movies on your TV, computer, or mobile device commercial-free whenever you want!

FAQs

Have you ever tried one of these free movie websites before?

To help answer some of your questions about streaming movies and to help you from getting scammed, definitely take anything that’s “free” on the internet with a grain of salt…well except for the free advice we provide on Money Peach of course! 😉

Are Free Movie Websites a Scam?

Before you try watching your first movie online for free, try looking around the site before you click play. There are dozens of websites that claim to offer free movies, but nothing happens when you click play.

Some websites are simply duds that no longer work. Others might put spyware on your computer, this is most likely the case if you’re trying to watch a new release that isn’t even on DVD yet. The only way to watch new movies for free is usually with periodic in-movie ads from one of the websites listed above.

There might be others that let you stream new movies for free which aren’t listed here, but do your homework to make sure the site is legit.

If you are on a free movie website that you’re unsure about, look for these clues:

• Contact information
• An About Us page
• State how they offer the movies for free (public domain or permission from the studio)
• Positive reviews from at least one third-party website

Yout might take your vetting process a step further and only join a website that has a free app. Most scam sites aren’t going to take the time to create an app. If they do, those who have been scammed will leave bad feedback in the app store so you can quickly discover the website doesn’t have the noblest of intentions.

Can You Stream Any Movie for Free?

Unfortunately not every movie can be streamed for free online; legally at least.

The answer isn’t as cut and dry thanks to the ins-and-outs of the Copyright Act of 1976, but essentially if the copyright isn’t renewed for a movie or TV show before the current copyright expires, the movie enters the public domain.

When the movie enters the public domain, it can be broadcast and streamed penalty-free. This is why most of the free movie websites have movies and TV shows from the 1960s and earlier that you can watch commercial-free.

New movies can also be part of the public domain at the producer’s discretion. But since these movies can still be broadcast and licensed for royalties, most producers won’t do this until they can no longer make a profit from the film.

You should also avoid sites that download movies via torrent. The legality of these websites are questionable, plus they can be a backdoor way to install spyware and viruses on your computer if you come into contact with a bad actor.

Can You Watch New Movies for Free?

Watching new movies for free isn’t as easy because they are still earning a profit for the studio and don’t belong in the public domain. That means you might only be able to watch the movie on one or two streaming sites instead of ten.

For example, Sony Pictures owns Crackle which might be the only movie website that lets you watch certain titles for free. You can watch these movies with limited ads which are worth the tradeoff of having to take the entire family to the theater to see it.

Are Free Movie Websites Legal?

The free movie websites listed above are legal because they either provide movies included in the public domain or they partner with the movie studio to legally show the movies for free.

They also play commercials to pay the streaming royalties to the studio that you must watch. You can click on the ads to help the streaming service earn a small commision so they can expand their catalog.

Can I Watch Free Movies with Roku?

Yes!

Several of the movie websites included here offer a free Roku app that works with your Roku Express or Roku Streaming Stick+ to seamlessly watch the free movies directly on your TV.

You will need to see which websites support Roku streaming, but these suggestions are already set up for Roku:

• Crackle
• Vudu
• TubiTV
• Popcornflix

Which Free Movie Website Is the Best?

That answer depends on what you want to watch and how you want to watch it. The most common viewing method is streaming directly on your personal laptop like you watch a YouTube video.

If you have a smart TV, Roku, or video game system that you want to watch videos with, you should consider one of the free movie apps listed above, Crackle and Vudu are probably the two most common apps but there are several to choose from.

Summary

When a movie ticket costs $9 a person, what do you have to lose by trying a free movie website?

If you enjoy old movies, you’ll now be able to watch them for free compared to keeping a cable or Netflix subscription. Even newer movies can be watched for free if you’re willing to sit through a few commercials.

Now choose your favorite site listed above, grab a bowl of popcorn, and sit back and enjoy the show!

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With seven years of rental experience in two cities, I’m well familiar with this question.

Renting has many advantages. But, one downside is that you must pay rent each month. In most cases, two factors dictate how much rent you can afford. The first factor is your salary. Second, is where you live.

All of us has a different work and family situation. Maybe, you have more options to lower your rent than most. Even if you don’t, you still need to make sure you don’t pay too much for rent.

I’ll even share a few ways you can save money on rent.

How Much Rent Can I Afford?

The easy answer is that your annual rent doesn’t exceed 30% of your pre-tax income.

With this rule, your monthly rent is less than $1,250 when you earn $50,000.

And, if you can find pay less, even better!

But, the 30% rule doesn’t apply to every renter. This is true if you live in expensive cities. You might pay $3,400 for a one bedroom apartment in New York or San Francisco. To follow the 30% rule, you need to make at least $136,000 a year!

In fact, the 30% rule originates from federal public housing policy. Since 1981, rent for public housing can’t exceed 30% of a tenant’s income. So, this number is now a baseline for most budgets.

Once you go above the 30% mark, you might struggle to pay your other bills. After all, you can only reduce spending so much. And, you might not be able to increase your income to offset higher rent costs.

If at all possible, stay below the 30% mark for rent payments. For example, my monthly rent was around 20% of my annual income. Each month, that’s an extra $500 for extra loan payments.

What is 30% of Your Income?

Below is the most you should pay each month for rent.

This list is for your pre-tax annual income:

• $35,000: $875
• $40,000: $1,000
• $50,000: $1,250
• $60,000: $1,500
• $70,000: $1,750

If the average rent is higher than these figures, don’t worry. There are some tips further down.

While you can use a rent calculator, these two formulas work too.

Multiply the Rent By 40

Your potential landlord might use this formula to do some quick math.

Simply multiply the monthly rent by 40.

Example: $1,250 x 40= $50,000

Most rental applications require you to verify your income. The landlord can quickly compare your income to this formula. If your income isn’t at least 40 times higher, he might keep looking.

Multiply Your Annual Salary by 0.025

What if you know your salary and don’t have a property in mind yet? You find out what 2.5% of your annual salary is. This number is your maximum rent when it’s 30% of your income.

Example: $50,000 x 0.025= $1,250

So, 2.5% of $50,000 is $1,250.

Look for places with a monthly rent below this amount.

Use Your After-Tax Income Instead

Some people use their net income to choose their rent limit. This is your take-home pay after you withhold income taxes.

After all, your actual paycheck is how much money you can spend each month. Basing the 30% figure on this number forces you to spend less on rent.

Every person has a different tax situation. Even with the same pre-tax income, your tax burden can differ. Marrying and having children can lower your tax bill. And, more pretax 401k contributions can save you money at tax time too.

To figure your taxable income, look at your paychecks for the last three months. Add the net total income of all three months and multiply by 4. Then multiply that number by 0.025. This final number is the maximum rent payment for 30% of your net income.

Example: $24,000 net annual income x 0.025= $600

With this example, $600 should be your highest rent payment.

Don’t Forget These Rental Costs

Besides how much you pay your landlord, you must budget for these costs too.

To stay below the 30% target, you might find a cheaper place. And, you have a cushion for the below expenses.

So, $1,250 might be your 30% limit. But, you might find an apartment closer to $800. If so, use the $400 difference to offsets these extra expenses.

Renter’s Insurance

Some landlords require you get renter’s insurance. If not, it’s still a good idea to get some.

Renter’s insurance covers these three expenses:

• The cost to repair or replace your personal property
• Liability protection if a guest gets injured or you damage a neighbor’s property
• Additional living expenses if your property is uninhabitable

PolicyGenius lets you compare the rates of several providers at once. In most cases, you only pay up to $15 per month. And, it can save you thousands of dollars if you need it.

Utilities

You have to pay utilities as a homeowner too. But, some first-time renters forget these about expenses.

To save money, you may want to choose a smaller home that uses less energy. If you’re apartment hunting, try avoiding end units. You can also take it a step further and avoid a top floor unit too. The more exterior walls you have, the more energy it takes to heat or cool. As a result, your electric and gas bills are higher.

Some landlords include select utility bills in the monthly rent. If not, plan on paying for these services:

• Electric
• Natural Gas
• Water and Sewer
• Trash Pickup
• Lawn Care

You first need to get a rough idea of how much you will pay. Ask the utility company for bills from the current tenant. And, ask the landlord if they can provide any details. With this information, estimate your monthly utility costs.

Two optional expenses include cable tv and home internet. Instead of paying full price, click on the links to save money on these two items.

Tip: To save money, watch cable tv on Sling TV for $25 a month!

Pet Fees

If you own a pet, you may have to pay a pet deposit. Most apartments charge between $200 and $300 per pet. For most landlords, this is a one-time fee per pet. But, it’s more money you need to pay before you can move in.

Parking

Some complexes charge a fee for parking. You might get two spots for free. But, you may have to pay for guest parking or extra vehicles. So, if you also own a boat or motorcycle, you may have to pay extra.

Commuting Costs

Unless you’re moving down the street, you need to update your commuting costs. You may now pay more or less in tolls, public transit and gas than before. These are costs you can’t really control. So, make sure you can afford your new rent and the new commuting costs.

How to Save Money on Rent

Thankfully, you have several options to save money on rent.

Below are a few tips to help you stay below the 30% mark.

Before we begin, let’s remember one rule. Never sacrifice safety to save a few bucks.

Avoid Special Amenities

A hard decision most Americans have is learning to say “No.” Most of us have a disposable income. So, it’s easy to spend more on luxuries than we should. As a result, we struggle to pay for our basic needs.

Remember, your apartment or house needs to be safe. But, it doesn’t have to be the Taj Mahal.

To save money, you might avoid complexes with these extra amenities:

• Clubhouse
• Fitness Center
• Tennis Courts
• Swimming Pool
• Game Rooms
• Dog Parks

While all these amenities are nice, they add to rent costs. Even if you don’t use any of the on-site amenities, your rent includes the costs. So, you’re “losing money” if you don’t use them.

For instance, I was home on weekends for ten months of my first 12-month lease. For eight nights a month, I slept at my own place. Otherwise, I was out-of-town. Paying for a luxury apartment would have been an unwise use of cash. If this is you, pick a basic apartment. You can always move into a better apartment later.

Also, avoid units that overlook the pool or have a garden. Or, have in-house laundry hookups. Select units might also have vaulted ceilings and crown molding. For these amenities, you most likely pay more.

Some amenities can help you save money. For example, an apartment fitness center saves a gym membership. You just have to what amenities are worth the extra rent.

Don’t Get a Rental Property That’s Too Big For You

Most of us want the biggest place we can afford. After all, you have more space to relax. And, you have more square feet to keep your stuff. If you’re not careful, your buy items to fill the space. These items cost money and you don’t really need them.

As we all know, larger units cost more money. So, find a place that’s big enough for you, but not too big. If you’re planning on getting married or having a baby soon, it can be better to stay. It can be cheaper and less stressful than moving in a year.

And, a spare bedroom means you can get a roommate to help split the rent.

Compare Apartment to House Rental Costs

Don’t assume a small apartment is always the cheapest option.

There are many factors that determine rental costs.

Some of these factors include:

• Amenities
• Quality of Neighborhood
• Size of Waiting List
• Is the complex kid or pet-friendly?

If you rent a home, you may have to mow your own lawn. But, you can save money. And, you can also have more privacy than an apartment.

Also, some landlords rent apartments and townhomes. Both of these properties may have the same number of bedrooms and bathrooms. Compare the price and see which is the better deal.

Costs can vary more than you think for nearby rental properties. So, it pays to compare prices for at least two different properties. And, take the time to tour the complex or meet the landlord. If possible, bring a friend to get a second opinion.

After all, rent is probably your single largest expense each month. The last thing you want is to live in an inferior house. Or, to have a bad landlord. Many renters have horror stories. There’s no need in creating another one.

Once again, don’t be afraid to walk away if you don’t like something. Sometimes, you don’t realize an issue until you tour the property. It’s better to find these things before you sign the lease.

Sign a Longer Lease

Sometimes, you need to sign a longer lease to get the lowest rent. In most cases, this is a 12-month lease. Any agreement shorter than a year means you pay more.

Landlords use this policy to find committed tenants. They only make money when a tenant lives in a unit. They charge more for short-term rentals to hedge against vacancy. And, to offset cleaning costs in-between tenants too.

Get a Roommate

Sometimes, it makes sense to get a bigger place. For example, the rent for a two-bedroom unit might only be $100 more than a one bedroom unit. That’s the case at my old complex.

A second option is renting an entire house. Depending on the neighborhood, a house can be cheaper than an apartment. And, you get more living space!

Getting a roommate is a common hack to save money on rent. In an expensive city, this might be your only way to afford rent.

Live in a Cheaper Neighborhood

Moving to a cheaper neighborhood is an easy way to save money. But, make sure the commuting costs don’t exceed the rent savings. Living downtown is nice, but it’s not necessary. Your house doesn’t have to be a status symbol.

After all, you can always call Uber to get back home on a Friday night.

Sell Items You Don’t Need

Many people move into bigger rental units every few years. This isn’t because they have a growing family. It’s because they buy more stuff. So, they must either find a larger place. Or, they rent an off-site storage unit. Either option costs more money than staying small.

Instead of spending more money, sell items you don’t need. This way, you can fit into a smaller place. And, it’s fewer items you need to move.

You can have a garage sale. But, you can also try these tricks to sell your items too:

• Consignment Stores (Clothing)
• Decluttr (CDs, DVDs, and Tech)

Plus, Craigslist can be your best friend too!

Start a Side Hustle

For a season, having a side hustle to make rent is a great idea. This side hustle can fill the gap until you get a raise at work. Or, until you can find a roommate to share rent costs.

However, you shouldn’t rely on a side hustle to pay rent long-term. This is the equivalent of living paycheck to paycheck. Most people can’t sustain this lifestyle long-term.

Instead, find a cheaper place to rent. Then, use your side hustle to pay off debt or to build your savings.

Change Jobs

Life events like marriage and job changes affect how much rent you can afford. The cost of living influences my own career path and which city I live in.

If you struggle to pay rent, maybe moving is the best answer. If you enjoy your employer, see if you can change office. Or, find a new employer in another city.

And, don’t forget about telework. Many jobs are online-based and location independent. You may still have to drive into the office once a quarter. But, you can work remotely the other weeks.

One benefit of paying rent is that you can move when your lease ends. If you own a home, you might not be able to move until you sell the home. This way, you don’t have to pay two mortgages until your old home sells.

Become an On-Site Property Manager

If the leasing office has an open position, maybe work there. You can work for cheaper rent. As an on-site property manager, you can enjoy lower rent. Although you may have to work after hours, you save money on rent.

Depending on the landlord, maybe you can lower the rent by doing certain tasks. For example, you can do your own repairs. Or, mow the lawn yourself if the landlord usually does it. You may need an easygoing landlord for this to happen. But, it happens more than you might think.

Challenge Yourself to Pay Less Rent

Do everything possible to stay below the 30% mark with your monthly rent.

Beyond having more money each month, lower rent has several benefits.

Hedge Against Future Rent Hikes

Each time you renew your lease, there’s a chance your rent can increase. In general, rent rates increase more often than they decrease.

If you want to live in one place for several years, find a cheaper place. Renting at the top of your price range means you might not afford next year’s increase.

Your income might not increase as fast as your landlord raises the rent.

Rent prices increase with your local market rates. But, there are a few other reasons your rent can increase:

• New on-property amenities
• Remodeled units
• Costly repairs

As a renter, you’re not responsible for maintenance. But, your landlord recoups maintenance costs from the rent. As a property ages, these costs increase. And, the current tenants can pay a higher rate.

Live Within Your Means

Paying less rent helps you spend less than you earn.

One popular budgeting method is the 50-30-20 Rule.

Here’s how to divide your paycheck:

• 50% for needs like housing, food and insurance
• 30% for “wants”
• 20% for saving and extra debt payments

Rent falls into the 50% category. At 30% of your income, rent is most of your “needs” spending. Depending on your income and expenses, only spending 50% on needs might be tough.

Tip: Get control of your money with the Awesome Money Course!

Make Extra Debt Payments

Less rent means you can focus more money on getting out of debt sooner. One reason why I didn’t choose the most expensive rent I could afford was to repay my student loans sooner.

Knowing you don’t have to make a debt payment each month is a relief.

Increase Your Net Worth Quicker

To an extent, rent is like throwing money away. You will never get any of your rent money back.

Instead of paying more rent than you have to, build wealth for yourself. Personal Capital has a free tool I enjoy using. In real-time, you can track your own saving progress.

You should save and invest your rent savings. This way, you have money for short and long-term goals.

For example, maybe you want to buy a house in the future. Maybe, you don’t own a house because you can’t afford the 20% down payment. Paying less in rent helps you save for the down payment.

Build a Better Credit Profile

Paying rent doesn’t usually help your credit score. But, RentTrack can help build a credit history.

If you don’t have other ways to build credit, this can be a good option.

There are times when you may have to report your monthly rent to creditors. For example, you may want to refinance your current loans. If your rent is too high, you might not get the best interest rate.

With a small rent payment, you tell others that you can manage money well.

Plus, less rent decreases the odds of having to borrow money in the future. By saving your extra income, you can pull from savings for large bills. Then, you pay yourself back!

You Can Work Less

Maybe, your only option right now to afford rent is to work extra hours. Or, both you and your spouse must work to make ends meet. Moving to a cheaper apartment reduces your monthly expenses. Since you spend less on needs, you can afford to make less money.

The Takeaway

In most places, you can find a rental that’s less than 30% of your income. As always, look to spend as little as possible. Paying less rent means you have more disposable income. In turn, you can use this extra money to improve your finances.