Having to work 9-5 shifts daily can not only tire you out physically but could also burn you out mentally and emotionally. What’s worse is that you’d have to do all of this work only to pay your bills, and you wouldn’t even have enough time and energy left to destress and invest in yourself. Therefore, we thought it would be a good idea to share 15 Ways to Generate Passive Income in Canada.
If you’ve had the urge to learn new skills or subscribe to a workshop outside of your work life but don’t have enough money for it, you might want to consider exploring simple income strategies that require little to no effort at all! You’d finally have some extra cash and allowance on hand that you can spend for yourself一 you can have the liberty to choose whichever hobby you want to explore without having to worry about your time and expenses!
What is Passive Income?
It all seems too good to be true: through engaging in passive income, you would be able to earn more money even without having to put in a conscious effort whatsoever. But, that concept only works if you strive and put in the effort at the very beginning of your passive income journey.
You have to make sure that you’ve already created a steady stream of money before being able to leave it to its own devices. To do that, you will need to devote a lot of time and energy to sourcing out, investing, and researching. In a way, it would be like working another active-income-based job (meaning you have to “actively” do your work to gain results) while balancing your regular work simultaneously.
It would be difficult for most, but you have to remember that you are doing this for your future. Once you’ve already set your passive income generator, you can literally already leave it be and relax. You’d continuously earn more and more without even doing anything, so here are some residual income ideas to help you start!
The 15 Most Popular Passive Income Ideas in Canada
Opening a High-Interest Savings Account
Most traditional banks have decreased their saving accounts’ interest rates to less than 1%, making it almost unnoticeable that you’ve even had income by staying with them. Banks trade and lend your money to other people, almost using it as their own, but this, of course, doesn’t mean that your cash is unsafe. They only use them in the meantime, but if ever you need to withdraw your money anytime, they can give it to you on hand.
Because they use your money, they give you compensation or “payment” for it. That comes in the mode of interest. Most banks can give you an annual return, depending on how much you have in your account. The higher your balance is, the higher you get in return. As mentioned above, most traditional banks give you less than 1% of your account, meaning you get less than $1 per year for every $100 you have in your account.
To avoid this, you can store your money in digital banks instead. Because they only operate online, they don’t have expenses for rent and other utilities, making them have more allowance for commercial interest. Digital banks can have over 2-3% annual interest rate so that you can have more than twice the return. It’s definitely one of the best ways to make passive income since all you have to do is store your money in a savings account, and you’d already earn money.
Invest in Robo-Advisors
If you want to have help managing your money, you can invest in asking a financial advisor to do it for you. You can just tell them what you’re comfortable with (risk tolerance, amount of money you can afford to invest, etc.), and they can give you their professional advice and media options.
However, these are people with expenses and personal needs, so their fees may be higher than you can afford. Instead, you can invest in Robo-Advisors since they only operate digitally. Their developers programmed them to have an algorithm that can automatically put your money into investment opportunities based on your preferences.
These can also manage your portfolio for you, so you can actually just leave them be if you decide to invest in one. But, it’s not at all a problem if you have some trouble completely trusting the algorithm to manage your money.
Investing in The Stock Market
If you want to get involved with companies indirectly, you can give a portion of your money to them and get returns for it. They’ll use your money as funds for their projects, and doing this means that you can get a share of their income in time. To do this, you can have permanent and temporary assets in the company, but without any type of commitment.
You can let go of your assets any time you want, but that means that you would not have the shares any more. If you think that the trend is already at its peak or that you’re already losing money, you can trade with other people on the platform to get your money’s worth.
Your assets will either be worth more or less over time, so you have to make sure that you’re putting your money into a reliable source or company. You wouldn’t want to throw your money into a bankrupt company and not get any returns for it. While stocks are the most commonly traded assets in the industry, there are, of course, a lot of other options一ETFs, bonds, GICs, index funds, etc., that can help you build your portfolio.
If you’d like to monetize your skills in writing, you can create a blog containing your passions and interests. Make sure to choose a niche that you’re really into, though, so that you would remain motivated throughout your blogging experience.
Doing this as a business does not require much investment at all! You’d only have to pay at most $5 per month to host your own website, but you will have to source people who can do your search engine optimization (SEO). SEO works by utilizing keywords to make your website pop out more in search engines like Google, Ecosia, and Bing.
The blogging industry is very saturated, and you will, for sure, run into competitors. To avoid being overtaken and ignored, you have to make sure that your blog is search engine optimized, unique, and without plagiarism. You’ll be able to earn money in time through gathering enough web traffic, displaying ads, and endorsing products.
You don’t need to have products on hand to be able to start your business, and you wouldn’t even need to pay for warehousing and shipping fees. Dropshipping requires you to find your own suppliers, and you can endorse and market their products on your own websites.
Basically, you’d be a marketer for their products and pay them according to how many products you sell. Then, you can add your own cut in the pay to be able to earn from them. For example, you can pay the supplier the base price of $3 for a notebook and sell them at $5. There, you can get the $2 for yourself.
You’re going to be working with companies and factories, and they’d be able to ship the products directly to your clients. You’d essentially be the middle person in the transaction, bringing an audience to the supplier and bringing the supply to the audience.
If you don’t want to start your own company or business, you can get involved in affiliate marketing instead. Here, you’ll just be a marketer for their products, creating websites, social media accounts, amongst other ways to advertise your clients’ products and company.
More often than not, your client would give you a unique link for your affiliate marketing wherein they can track your sales and clicks. They can pay you based on your performance, and you’d also get a share in every sale you generate. From a business point of view, you wouldn’t need to have many risk factors as you don’t need to invest in products and rent, making it one of the most accessible side hustle opportunities in Canada. All you have to do is invest time and effort into it to earn.
There are many apps that have partnered with leading companies to give you a cashback or discount whenever you purchase or avail of their products and services. You can download these and sign-up, then make your purchases through it to be part of the cashback program.
You can also subscribe to a credit card that offers cash back. Some of them work by giving you 1% of your money back, while some offer a higher return for certain utilities and necessities. For example, other cards would want to attract more customers into availing their subscriptions by giving them a 4% cashback for gas and water expenses.
Invest in Real Estate
You can buy properties now and let them grow in value over time. When there is less land available to the market, your land will increase in value due to the law of supply and demand. It will be worth more since other people would want to have what you do but can’t.
Because of this concept, you can convert your cash assets into properties to ensure that you get a high return in time, as real estate generally has an upward curve in terms of worth.
Rent your Assets
Once you’ve acquired more physical assets than you need, you can start letting people use them for a price. For example, if you bought an apartment unit without living in it, you can rent it out for tourists or students in the meantime. More than that, you can also have a small car rental service.
Sell Stock Photos and Videos
If you have the equipment for it, you can take photos and videos in your free time, then sell them to stock companies. Doing this will give the people copyright-free content that they can use in their projects, so you have to be ready to let go of your ownership of the product.
This is an excellent way to make money on the side since you would only have to take those products once and earn off them. You also don’t need to invest any money to engage in this type of industry.
If you have the talent for songwriting, singing, or playing instruments, you can use various platforms to share your licensed music online. It’s like producing stock music for people to purchase and use without having to worry about copyright infringements.
You don’t need to be a professional at these tasks to earn moneyーyou just need to have enough exposure and an audience. Once your music gets used by a prominent personality, others could follow them, generating more income in the process. Just make sure that you have clear terms to avoid imitators and scams.
Start a Youtube Channel
If you have a passion for creating videos or vlogs, you can post them online and generate money over time. Because they won’t be taken down, your videos can collect viewership and income even after a long time, given that you followed all the regulations. You would just have to grow your channel until it’s stable enough, and you can leave it be afterwards.
To succeed, you need to follow the algorithm and use effective tags, engaging thumbnails, and high-quality videos. Once you gathered enough followers and an audience, Youtube will allow you to earn off your videos. You just need to have a consistent metric (videos posted, subscribers, views, likes, etc.) at the start.
Become a Social Media Influencer
You can also utilize other social media platforms if you think that you can attract a large enough following. If you continuously post photos on Instagram or create many engaging TikToks, you can definitely make a name for yourself online. Through these, you can earn money through the social media platforms themselves, meaning they pay you for the viewership.
You can also partner with companies and endorse their products and services. Because you have a large audience, you can give them exposure and generate sales as well. You can do this either way: get paid to endorse or get a share of their income, just like affiliate marketing.
Independent contractors, or freelancers, don’t have a regular and set time for their work. Meaning, they can manage their time and decide on how much work they take on. To start your journey on this, you can go to freelancing sites and platforms to connect with your prospective clients.
You basically offer your services to people online. If you’re a graphic artist, you can create works according to your clients’ descriptions and preferences. Freelancing is quite susceptible to scams, though, so you really have to make sure that your clients are reliable.
When you become prominent enough in the industry, you can definitely earn money passively through your outputs. You can have commissioned deals with your clients, giving you a part of whatever they make in time. It all depends on how you approach freelancing in Canada.
Engage in Print-on-Demand Businesses
If you’re an artist who wants to generate income directly from outputs, you can sign up for online marketplaces and post your artworks onto their blank products. Businesses like Printify and Redbubble give artists an outlet to commercially market their products without any type of investment.
You’d get a commission for every product you sell, and all you really have to do is invest some time and energy into your art. You don’t have to worry about shipping costs or product supply. The business will handle all of that for you, so you can create an infinite amount of products to sell.