Are you looking for ways to make passive income in Canada? Maybe you’ve some ideas in mind, but don’t know which is the best for you. Either way, your search ends here.
Passive income is a perfect way of creating a stream of additional income. Whether you want to save for a rainy day or retirement, passive income gets you covered.
However, there are many ways to make passive income in Canada. But the question is, which one should you choose?
In this article, we’ll go over different top passive income streams in Canada and how you can choose the one that fits you.
What is Passive Income in Canada?
Passive income means an extra income without spending a lot of time or money.
It can be any form or way that does not require your direct labour or attention to generate an income stream.
This type of income involves earning money while you sleep or work on something rather than your primary job.
It stacks up money for you while you are busy doing other things.
In short, passive income is an additional stream of income to your primary income. Since it’s an extra income, you don’t have to commit too much time to it.
Why Do You Need Passive Income in Canada?
You might be asking yourself, why do I need passive income? There are many reasons why you need a passive income. Below are some of the reasons why it is essential to have a passive income in Canada:
1. Financial Stability
Financial stability is an essential milestone. It removes money from your problems and allows you to focus on other areas in your life.
Therefore, having a passive income can enable you to cover your expenses which leads to financial stability.
Also, if anything happens to your primary income, you will still be able to survive financially.
2. Retirement Saving
Pursuing passive income in Canada is the best course of action in achieving your retirement goals.
This means creating a source of income that will constantly continue to deliver revenue even when you are no longer working.
3. Debt Payment
Have you ever considered how it would feel to be debt-free? The good news is, you can maintain your current lifestyle with a passive income while paying off your debt fast.
Therefore, you need to find the suitable passive income to create a steady income that will help you not to miss your monthly debt payment.
4. Saving for Your Children
Every parent wants the best for their children, and saving for the future is a great way to show how much you care.
Passive income can help you save for your children’s future so well that even when you are no more, your children will still have a great life.
5. Quality Life
We all want to improve our quality of life. However, it is not always possible with just one source of income.
But when you have enough passive income coming in, it is possible to live the life of your dreams.
20 Passive Income Ideas Canada
To get the best out of passive income in Canada, it is essential to compare different options to choose the best one.
There are many ways to earn passive income in Canada, but below are the top 20 ideas to choose from:
1 . Invest With a Robo-Advisor
Have you ever wished that you could take a vacation but not lose your profits? Or that you could go to bed and not worry about watching your stocks? You can make this dream come true with a Robo-advisor.
What is a Robo-advisor? It’s an automated financial advisor which will help keep your finances in order while adding to your net worth over time.
Also, a robo-advisor is an online portfolio manager that creates personalized portfolios using ETFs. They are software-based financial advisors who use algorithms to manage clients’ money based on their investment preferences.
These online platforms have become a popular choice because they require little time and human interaction to design a custom portfolio that fits clients’ wishes and opportunities.
The concept is simple: you create an account and answer questions that gauge your financial profile. Based on your answers, the robo-advisor invests your money in ETFs in a portfolio that mirrors the market and your specific preferences.
2. Become an Event Planner
Would you consider yourself a party pro? Do you have a passion for organizing people and events? If so, event planning is a viable passive income idea that can boost your bank account.
Event planning is competitive enough to consider and less challenging than many other passive income ideas.
There are numerous ways that you can earn extra money as an event planner. You can charge by the hour or flat rate, depending on your expertise and the required level of planning.
Also, you can start your own business or work for an established one. You can plan social events, corporate conferences or parties, or even weddings!
Becoming an event planner can be anything you want to make it. So what are you waiting for? Connect with friends, family, and colleagues to start planning great events!
3. Rent Your Spare Room
Have you ever thought about getting financial benefits from your own house? If you can spare a room in your home not occupied by any family member, you can rent it out and earn passive income in return.
Renting out your spare room has the potential to generate a significant amount of passive income in Canada.
Since there are so many potential renters out there, it makes sense to try this if you have the space.
However, this area is best for those who currently have a spare room in their home or those looking to buy a house and rent out a room to generate some additional income.
4. Create an App
If you’re a creative person who can create a compelling app that people will want to download, it can be a great avenue to make passive income.
There are many ways to make passive income through app development. You can sell the app directly through the Google Play Store or Apple App Store.
Apple’s App Store and Google Play get millions of visitors every day. So you know that if your app is popular, it can generate you money.
You can also partner with a company or brand and feature their products within your app. You can sell advertising space inside your app.
Lastly, you can create an affiliate business whereby you recommend products and services by other companies to your users and get paid commission if your users purchase it via your app.
5. Become a Resume writer
Are you a good writer? Have you always wanted to write and needed an outlet for your thoughts? Become a resume writer.
Being a Resume writer has the potential for developing passive income. You can get paid for writing resumes, editing LinkedIn profiles, and cover letters.
Some people are terrible at writing their resumes. Although it seems simple to just write about your experience and education, sometimes it can be challenging to do it right.
The opportunities are endless; there is always a business that needs a profile written up. I know lots of people that pay well to have their resumes appropriately done. Your prices may vary depending on how long the resume takes you.
6. DIY Investing
One of the best ways to build your investment portfolio is through DIY investing.
This is about creating your investment portfolio using diversified assets that are proven to grow your money.
The goal is to help you invest your spare cash into safe and profitable investments.
When you build an investment portfolio with the right mix of stocks and bonds, the interest they generate is passive income.
7. Open a High-Interest Savings Account
One of the best things you can do to earn passive income is to make interest. One way to earn interest is to open a high-interest saving account.
Therefore, if you want the sure thing, the best high-interest savings accounts are available to Canadians.
Some of the best bank accounts for high interest are:
- EQ Bank Savings Plus Account
- Saven Financial High Interest Savings Account
- Neo Financial High Interest Savings Account
- National Bank High Interest Savings Account
- And many more.
8. Start Blogging
Blogging has become one of the most effective and efficient ways to generate passive income in Canada.
This is so because you can make thousands without working more than a few hours each week.
Before you begin a blog, you must choose a niche that you are passionate of.
From there, you just need to put in the time and effort to build up an audience.
9. Use Cash Back Apps
It’s becoming more and more common for Canadians to use cashback apps when shopping to earn passive income.
Luckily, there are a growing number of cash back apps available in Canada that reward you on almost everything you buy.
These cash back apps partner with several shops online or in-store and pay you a percentage of your purchase as “cash back.”
10. Invest in Real Estate
Real estate is one of the popular ways of generating passive income in Canada. If you are interested in the real estate market and desire to take a long-term investment approach, this might be something to consider.
There are many benefits to investing in real estate. For me, the biggest draw is the passive income generated by buying properties that generate rent month after month while I am asleep.
11. Create an Online Course
This is one of the hundreds of ways people are using the internet to earn passive income today. Creating a course to teach others your knowledge or skills is a great way to earn passive income in Canada.
With Internet access, people can learn from anywhere in the world at any time. So, if you’ve got something worthwhile to share or teach, there’s a market out there for you.
12. Lend on Peer-to-Peer Platforms
One of the most popular forms of alternative lending is peer-to-peer (P2P) lending. This is a great way to build wealth and generate passive income with low risk.
Numerous P2P websites help match up borrowers looking for loans with people willing to lend money to them.
In return, lenders profit by collecting interest on these loans, while borrowers benefit by receiving low-interest loans.
13. Start a YouTube Channel
Do you like recording videos on your phone? Maybe you want to become “the next big YouTube star.” Starting a YouTube channel can be a great way to have fun and make passive income.
However, you need to find a unique niche in high demand to generate passive income on YouTube.
This is important because the more views your YouTube channel has the more passive income you earn.
14. Join Affiliate Marketing
Joining an affiliate program is another passive income idea that can help you make more money in Canada.
Companies pay affiliates to promote their products or services because it allows them to reach more potential customers.
As an affiliate marketer, you will receive a commission for selling or referring others to the products or services.
15. Take Online Surveys
Taking surveys is one of the quickest ways to start making passive income in Canada. You can begin taking surveys right away, and it doesn’t require any special skills.
The process from start to finish only takes a few minutes, and what’s cool about this job is that you can do it whenever you want.
By filling up surveys, you’re helping businesses improve their services while earning money at the same time.
Some of the popular survey sites you can join right away include:
- Survey Junkie
16. Become a Social Media Manager
If you love and enjoy using social media and use it every day, there is an excellent chance that you could get yourself a job working through them.
Instead of just being on social media just for fun, you can find companies that need social media and start earning your passive income from them.
Social media is an essential part of online marketing, and social media managers are in high demand.
For this reason, social media management is a promising job option that has a vast potential for a long-term income.
As a social media manager, your role is to manage companies’ social media accounts at your convenience.
17. Coach Others
Coach others about the things that you know. Coaching is a great way to share your expertise and help others reach their goals.
However, there are many ways in which you can coach others. But first, it’s essential to choose a coaching area base on your skills and the things you have a passion for.
Choosing the skills you want to teach others based on your skills and passion will make it easier for your learners to learn fast.
Moreover, you will also find the coaching process smooth because you will be coaching based on what you already know and have passionate about.
With so many different areas of interest out there, you don’t have to be afraid of stretching your knowledge and sharing something new.
18. Sell Products Online
The internet is one of the best places to promote your products without being limited by location.
Even if you are in Canada, you can reach millions of potential customers that are ready to buy your products in different nations.
There is no need to promote your products in every country when you can reach more people online.
19. Find Freelance Jobs
You are probably wondering what a freelance job is. A freelance job is a bit different from an office job, but it’s still rewarding.
A freelance job is a job that you do for other people via the internet. This type of job is an opportunity to work according to your schedule.
Whether you want to design websites or write articles, there are freelance opportunities that fit your skills.
Through freelancing, you can earn passive income by carrying out assignments that suit your passion and skills.
20. Write E-books
E-books are becoming very popular on the internet today. So it is no surprise that e-publishing companies such as Apple’s iBooks and Amazon’s KDP make writing e-books an adequate passive income idea.
Writing an e-book is an excellent passive income idea because you have an opportunity to create a long-term passive income source.
Also, it’s a simple idea to execute and has a practically limitless audience because you will be able to sell it on the world-wide-web.
Take Away on Passive Income Canada
Choosing a passive income stream may be a difficult task. But luckily for you, you now have several passive income ideas to choose from.
So, now that you know the various passive income ideas in Canada, I hope you can choose the one that is best for you.
Start building your passive income empire today! If you need more clarification, don’t hesitate to communicate through the comment section,
How much money do you need to make passive income?
It depends on the type of passive income idea you choose. Some passive income streams such as surveys don’t require money to start. But other passive income streams like DIY Investing need specific starting capital.
What are the 2 types of income?
Active and passive income. Active income is a primary income, while passive income is an extra income.
Is passive income taxed differently?
Yes, passive income is taxed differently from active income. The way passive income is taxed depends on the type of income and how you earn it.
Are royalties passive income?
Given that royalties are a percentage of sales, they are also a form of passive income.