M1 Finance is a well known financial app among today's younger investors.
Starting out as simply a brokerage platform, M1 Finance now offers a wide variety of products ranging from credit to borrow products.
If you are doing research on the platform, you might be wondering how M1 Finance can make you money.
Of course, there is the potential to spend less money based on having better oversight into your finances.
If you use all of the M1 offerings, you can take care of almost all your financial needs in one place.
There's also the different ways to make money or earn rewards based on the different M1 Finance offerings.
Let's dive into both now!
Or, if you prefer, we have a video below outlining how to make money with M1 Finance.
If M1 Finance is running a transfer promotion, you can earn a cash bonus for transferring over an existing taxable brokerage or retirement account.
The larger the value of the account, the larger the bonus.
Use the button above to check out the latest transfer promotion being offered by M1 Finance.
The next way to make money with M1 Finance is through investing.
The most common way to make money investing in the stock market is by buying low and selling high.
Let's say you buy a stock for $50 and then a year later it is trading for $65.
If you sell, that is a capital gain of $15 per share, money in your pocket!
Of course, you have to sell the stock/ETF in order to realize the capital gain.
Keep in mind, it is possible to lose money if the market goes in the other direction.
M1 Finance is really popular among dividend investors.
That is largely due to automation features built in such as dynamic rebalancing and portfolio level dividend reinvestment.
When you invest in stocks/ETFs, many of these investments pay out dividends. This is usually on a quarterly basis.
When you earn dividends, you can either cash them out by transferring the money to the bank or you could reinvest them.
Keep in mind, reinvesting allows you to earn compound interest.
If you are curious, here's our full guide on what happens with dividends with M1 Finance.
This is the latest new offering from M1 Finance.
The Owner's Rewards Card is a credit card that integrates directly with your portfolio.
The card is currently only eligible to M1 Plus members, which comes with an annual subscription cost of $125.
Essentially, this card allows you to earn cash back rewards for shopping at companies that you also invest in. There is a list of participating brands on their website, and the cash back reward ranges from 2.5% to 10%.
Keep in mind, this is a credit card. If you don't pay off your balance in full monthly, it could end up costing you money.
Finally, we have the M1 Spend checking account.
In order to earn the 1% APY on the checking account, you do need to be an M1 Plus member.
This is a checking account that integrates directly with your portfolio allowing you to move money between accounts with ease.
You also earn 1% cash back on purchases and 1% APY on deposits assuming you have an active M1 Plus membership.
