Referral Bonuses: Passive Income at the Click of a Button
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If you're like me, you've probably spent some time daydreaming about what it would be like to earn money without any effort required. Maybe it's a pile of gold buried under your tulips, a mysterious inheritance dropped in your checking account from a long-lost aunt, or residual checks for every rerun of Seinfeld.While not impossible, those are all pretty far-fetched possibilities for the average person. But there are ways to earn passive income in real life, and one of them requires almost no effort from you at all.Refer a friendFinancial institutions know that some paths to new business are easier -- and cheaper -- than others. If they can bring in more customers via word of mouth rather than having to spend more on advertising, that's a win for them. As such, many banks and credit card issuers offer referral bonuses to their customers.This often involves the business providing you with a personalized link that you can send to a limited number of people. If those people sign up for the financial product on offer, you get a bonus. That could be in the form of cash deposited into your savings account or points or miles added to your card's rewards program.Be aware of any limitsReferral programs will very likely have a maximum number of rewards you can earn. For instance, my high-yield savings account says I can earn $50 for each friend I refer who signs up for an account and completes any requirements. But the maximum I can earn is $250, so I have to choose my five friends wisely.You won't be able to retire early and live solely off of referral bonuses, I'm sorry to say. But you can afford a nice dinner out or even a vacation off of what you earn. Or, if you don't need the cash just yet, put it into a savings or brokerage account so it can grow into an even larger sum. Referral bonuses plus compound interest? That could turn into a tidy sum with a little bit of time.It couldn't be easierReferral links aren't an unlimited source of income, but generally, they're truly passive. Last year when I referred my parents to a credit card, all I had to do was text them a link. Within a few minutes, they were approved for the card, and 15,000 points appeared in my account within a week. Those points were worth at least $150 -- just for hitting "Send."Take a look at your various accounts and see if there are any referral programs you can take advantage of. If you can max out the referrals on a few credit cards and bank accounts, you could be up hundreds or thousands of dollars without breaking a sweat, or even getting out of your sweatpants.And while you're at it, broaden your search for other referral programs at businesses you frequent. Does the auto shop give a 10% discount if you bring in a new customer? Does the bakery offer free croissants when you get your friend to sign up for the coffee punch card? It's worth keeping your eyes open to see what you can earn. And if any of your friends earn you a referral bonus, make sure to treat them to something nice as a thank you.Alert: highest cash back card we've seen now has 0% intro APR until nearly 2026
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