In late-2016, Brandon Krieg, Ed Robinson, and David Ronick released the iOS Stash app on the Apple App Store and followed up with an Android version in the first quarter of 2017. Since then, the “app that invests your spare change” has fueled a string of personal money management and investment apps.
One of the most common questions I’ve been asked about the app, though, is, “Can you actually make money with Stash?”
Yes, you can make money with Stash. As long as you know some basics about how the stock market works, then Stash can help you build an entire investment portfolio with minimal effort on your part. After a month, you can easily round up $25-50 in spare change, which you can then invest in the various stocks and ETFs listed on the Stash exchange. Stash also has a great referral bonus.
Today, I’m going to show you ten different ways that you can use Stash to make money. For some, Stash is just a great way to “stash away” extra cash like a savings account. I’m about to explain how you can turn the popular money management app into a valuable asset, though.
10 Ways To Make Money With Stash
As I mentioned, Stash works by investing your money in the stock market. One of the biggest reasons people like Stash is that it allows its users to invest in fractional stocks with as little as $4.95. That’s the price of a Starbucks coffee! Although Stash isn’t the only stock trading platform to offer fractional shares Questrade, Robinhood, and Webull do fractional shares as well), Stash has popularized it with its clever advertising strategy.
How Stash Works: The Basics
What differentiates Stash from its competitors, though, is that it not only gives you a solid platform to invest from, but it gives you a strategy to save investment money in the first place! If you were to ask most people why they aren’t more invested in the stock market, they’ll likely tell you that they would… if they had enough money.
Currently, around 70% of Americans have less than $1,000 in their savings account. Most of these people are almost certainly not invested in the stock market either. It really comes down to one thing- most Americans suck at saving money!
And who can blame them? Our public education system has utterly failed generations of students in regard to financial literacy and money management.
The beauty of Stash is that it takes the thought out of saving money. Once you link your bank account to the app, it will automatically round-up every purchase you make to the closest dollar. For example, if you spend $8.37 on breakfast, Stash will then send $.63 to your Stash balance.
Most people make small, careless purchases like these all day without even realizing it. After going about your day as normal and making your usual purchases, you could easily save $5 – $10 a day.
Once you have at least $4.95 in your Stash balance, then you’ll be able to start investing in stocks and ETFs through the Stash app! From there, you can grow your account as big as you want it to. You can even add extra money to your balance should you wish to.
Now that you understand how the application works, I’m going to show you how to get the most out of it and give you an investment strategy that’s guaranteed to put some money in your pocket.
#1- Use Your Debit Card More To Save More!
If you’re used to spending money on your credit card or paying for items with cash, then you may want to switch your daily spending to your debit card. This is because Stash is directly linked to your bank account. It currently doesn’t support credit cards, and there’s no way of tracking your cash payments.
The more you use your debit card, the more money you’ll be able to invest. While the stock market is definitely profitable, it’s more of a long-term game than a get-rich-quick scheme. On average, most people can expect their stock portfolios to grow by about 10% every year based on data recorded over the past 100 years.
Occasionally, you’ll get lucky and invest in a stock like Tesla or Netflix that blows up over a short period of time. However, this is not normal, so you shouldn’t expect it. Ultimately, if you want to see a greater return from Stash, you need to increase your investing amount. The easiest way to do this is by simply using your linked debit card more often!
#2- Invest Part Of Your Paycheck
This conveniently leads us to my next point- ensure that more money goes into your investment account! The VP of Berkshire Hathaway (one of the country’s largest hedge funds), Charlie Munger, said that the first $100,000 that you make will always be your hardest. Once you have that much, you’ll be able to see some serious returns on your investments!
At this point, you probably can’t even imagine having 100-grand to invest in the stock market. But, the point still remains. If you can consistently add more money to your investment account, you’ll build it to a few thousand bucks in a relatively short period of time.
Aside from rounding-up your debit card purchases, you can also set Stash to take a specific amount out of your weekly paycheck. As long as you receive direct deposit, Stash can take an extra $5, $10, $20, $100 (or any amount) out of your check and put it towards your investment account. Ultimately, this furthers your goal of making more money from Stash even faster.
#3- Research And Invest In Stocks
Once you’ve built up your stash balance a little bit, it’s time to start investing in some stocks. If you’re a beginner, Stash will typically recommend you a few choice stocks based on your interests. However, in my opinion, you’re a lot better off researching and investing in your own stocks.
The key here is research.
If you want to make money with Stash, you need to be a proficient investor. That means learning about the stock market, understanding when to invest and when not to invest. While you’ll have to learn some of this through experience (the hard way), you can avoid a lot of heartaches and lost money if you take the time to educate yourself.
Thankfully, the Stash website is full of free information and how-to guides to help you make wiser investments. The best advice that I can give you is to find stocks and companies that interest you, research them to make sure they’re solid/profitable, and then invest directly into them.
#4- Invest In ETFs With Stash
ETFs (Exchange-Traded-Funds) work a lot like stocks. The difference is that an ETF represents a group of stocks. It’s common to see commodities (such as copper, gold, oil, etc.) bundled together into these ETFs. The main advantage of an ETF is that you’ll be investing in the market as a whole, not just a singular company.
This means that if the value of gold goes up, your gold-based ETF (which includes multiple gold stocks) will also increase. ETFs are also easier for beginning investors to get into. They typically don’t produce the highest return rates as an individual company (stock) might, but they are a lot more secure and make for a great long-term investment.
For the record, there are several factors that indicate a rise in ETFs throughout 2021 and 2022. Analysts have extrapolated this data by examining the last time that the value of the American dollar went down (like it is now). Shortly thereafter, commodity-based ETFs increased substantially over a five-year period.
#5- Participate In The Stash Referral Program
Alright, for those of you who are always looking to take the easy way out, here’s an excellent way to make some money with Stash- their referral program! Just like Cash App’s famous referral program (which gave users $5 for referring a friend), Stash quickly realized that the best way to increase its user base was to give away free money.
Except, in my opinion, Stash has a way better referral bonus.
If you refer a friend who downloads the app on their smartphone, then you will automatically get $5 added to your Stash balance. Additionally, your friend will start off with $20 in their Stash balance! Now, if you’re a clever individual, it doesn’t take a genius to realize that you could get all of your friends to download the app and get them to give you half of their start-up balance… you didn’t hear that from me, though.
#6- Re-Invest Your Profits And Diversify Your Portfolio
Although this is method number six, this rule is, by far, the most important rule when it comes to being a successful stock trader. Well, technically, it’s two rules:
- Re-invest your profits (until you hit your goal)
- Diversify your portfolio.
If you want your portfolio to grow, then you need to keep investing. It’s common for a lot of first-timers to see quick success and then cash-out their profits and blow it on Amazon. Don’t be that guy.
Set a goal for yourself. Maybe you want to reach $1,000; perhaps it’s $5,000 or $50,000. Whatever it is, re-invest allprofits until you reach that goal. Then, once you reach that goal, set an even higher goal and start taking a small percentage (say 10% of your monthly profits) and keeping it for yourself. This will allow you to grow your account and continue making money while also rewarding yourself for your efforts.
The second rule goes hand-in-hand with the first- diversify your portfolio. Never invest all of your money into one stock or one ETF. If anything bad happens, then you could stand to lose a significant portion of the portfolio you’ve worked so hard to build. Instead, spread your investment across multiple stocks and ETFs in different industries.
#7- Invest In COVID-19 Pharmaceuticals
The first rounds of COVID-19 vaccines have hit the global market. There are currently two major pharmaceutical companies manufacturing their own FDA-approved versions- Pfizer and BioNTech (a German company). While both of these would be a good investment, insiders believe that Johnson and Johnson is close to perfecting their own version of the COVID-19 vaccine.
This is the type of research that you need to be doing on your own. A smart investor would have read this news the second it came out and moved some of their investments into the company before the masses found out and the price increased.
Since COVID isn’t going away anytime soon, you might consider investing more into technologies that prevent the spread of the virus along with pharmaceutical companies that are making new, more effective versions of the vaccine.
#8- Invest In Stocks That Pay Dividends
Another great piece of investment advice that I can give you is to invest in stocks that pay dividends. Not all stocks pay dividends, so you’ll need to do some research and find out which stocks do and which ones you’re interested in.
Essentially, these companies pay out extra money at the end of the year based on how much profit they make. This serves as an incentive to encourage other investors to keep their money invested. How much your dividend payout ends up being is completely dependent on how much you have invested into the company.
#9- Start An Investment Account For Your Kids
The greatest way to ensure your own future wealth is to invest in your children! Even though your kids aren’t legally old enough to invest in the stock market, you can open up a fund for them and begin setting money aside and investing it for them. Once they’re 18 (or 21, depending on your state’s laws), ownership of the fund will be automatically transferred to them.
They’ll be able to continue investing the money or they can transfer the money into their bank account and use it to help pay for college, a car, or whatever else they may need. Setting your kids up to be successful in their adult life is one of the most important things that you can do for your own personal wealth. You won’t have to lend them as much money, and one day, they might even return the favor!
#10- Apply For The Stash Stock-Back Rewards Debit Card
Stash recently released its own debit card that allows users to spend their Stash balance as they would with their normal checking account balance. Unlike normal debit cards, however, the Stock-Back card lets you earn interest that you can invest back into stocks. Most merchants offer a 0.125% stock-back reward. However, some merchants who have a stronger partnership with Stash offer up to 5% back, which can really help put some extra money in your pocket.