Are you interested in earning some extra money without having to do much work? If so, then you may want to consider earning some passive income.
Passive income is a great way to increase your income without much effort and ongoing involvement once set up. There are several ways to generate passive income in Canada, as a result, understanding which one is best for you can be a challenge.
In this article, we will discuss what passive income is, and their benefits. We will also take a look at some of the best ways to start making passive income in Canada.
Whether you’re looking for a new side hustle or just want to save up for retirement, these passive income ideas will help you achieve your financial goals.
So if you’re ready to learn how to make money while you sleep, keep reading!
What is Passive Income?
Passive income is a method of making money which involves generating additional income without having to work as hard.
Unlike other kinds of business models, passive income doesn’t require you to do much effort.
This can be appealing to a lot of people, especially if they want to make money but don’t have the time or resources to put into a full-time job or business.
While it is possible to make a lot of money through passive income streams, it is important to remember that these require some initial investment of time or money.
Once you have set up your passive income stream, it is important to create a little time to monitor it. This will ensure that it continues to generate revenue.
Additionally, it is important to diversify your sources of passive income to reduce your risk of losing money if one stream dries up.
By diversifying your sources of passive income, you can ensure that you will always have a steady stream of earnings coming in.
Therefore, if you’re looking for a way to make some extra money without putting in a lot of extra effort, passive income might be the perfect solution for you.
Benefits of Having Passive Income in Canada
Passive income is a great way to generate some extra cash. There are several perks to earning a passive income.
Here are some benefits of earning passive income in Canada:
1. Less Effort Required
As discussed above, passive income is something that you can do without spending much time or effort.
This is great news for those who are looking for a way to make money without having to do much of anything.
However, it is essential to note that some passive income ideas may require initial time and effort.
But, once you set up your passive income streams they can provide a consistent and valuable source of financial stability.
2. Financial Stability
Your expenses can be covered by passive income, resulting in financial stability. This is especially helpful if you are living on a budget.
You don’t have to worry about managing finances or trying to find work that could potentially pay well enough for you to cover all of your bills on time.
Also, you can spend more time doing what matters most to you, such as spending time with friends and family, travelling or simply relaxing by enjoying life!
Additionally, you will be able to survive financially even if you lose your primary income.
3. Debt Payment
When you have a lot of debt, it can be difficult to make ends meet. If you want to pay off your debt, you may need to work more hours or find another job.
Passive income is an excellent way to get out of debt and continue with your life without worrying about paying your bills.
This is especially valuable if you have a lot of debt you are struggling to pay. With passive income, you can pay off your debt quickly while also saving more money each month.
4. Saving for Retirement
Saving for retirement is one of the most important things you can do. If you don’t have enough money saved up to cover your expenses in retirement, then you may find yourself in a difficult financial situation.
However, it can be difficult to save for your retirement when you don’t earn much. This is where passive income comes in.
By having a passive income in place, you can be rest assured that you will continue to earn a steady income after you retire.
5. You Can Control Your Schedule
Passive income allows you to work when and where you want, without worrying about managing time or the stress that comes with working for someone else.
Because there isn’t any pressure on your schedule (unless you choose), you get more free time during the day when you want it.
This is great for getting things done around the house or taking care of personal needs and responsibilities outside
Top Passive income Ideas in Canada
There are many ways to create passive income, but today we will focus on 20 of the best ones.
1. Invest With a Robo-Advisor
Robo-advisors are a type of investment account that provides automated investment management for clients.
They aim to mimic the performance of a human advisor by taking into account all investment options available and investing money according to your preferences and making adjustments as needed.
This can help with liquidity constraints where you don’t have time for research and analysis.
And with many Robo-advisors offering low or no fees, it can be an affordable way to invest as well.
This hands-off approach to investing can provide you with a passive income stream while freeing up your time to focus on other pursuits.
Therefore, if you’re looking for a passive income idea in Canada that requires no effort on your part, investing with a Robo-advisor may be worth considering.
Related: Best Robo-Advisors in Canada
2. Open a High-Interest Savings Account
One of the easiest ways to earn passive income in Canada is through savings. If you have a high-interest savings account, you can make the most of it by depositing money into it and earning interest on your deposits.
The more money you put into your high-interest savings account, the more interest you’ll earn.
This can be a great way to start building up savings for future expenses or emergencies that come up unexpectedly.
It’s also an excellent way to save for retirement as well as other goals like paying down debt or building an emergency fund.
Many banks and credit unions in Canada offer accounts that come with high-interest rates. All you have to do is shop around for one that meets your financial needs.
Best of all, you won’t have to do anything other than keep your money in the account to earn this passive income.
As long as you don’t need immediate access to your savings, a high-interest savings account is a great way to make passive income in Canada.
3. Invest in Real Estate
Real estate investing offers many advantages that other passive income ideas do not, such as the potential for high returns, tax benefits, and the opportunity to build equity.
Furthermore, real estate is a relatively safe investment, especially when compared to stocks and other volatile markets.
For these reasons, investing in real estate is a great way to generate passive income and build long-term wealth.
As a real estate investor, you can choose to invest in rental properties, which can provide a steady stream of rental income.
Alternatively, you can choose to flip homes, which involves buying properties at a discount and then selling them for a profit.
Whatever strategy you choose, investing in real estate is an excellent way to build wealth over time.
4. Start a YouTube channel
YouTube is one of the best ways to build passive income in Canada. People are watching thousands of hours of video every day on YouTube, and high-quality, original content can lead to thousands of dollars monthly.
However, getting started with YouTube can be a challenge if you don’t know where to start or what you need to do.
To start a YouTube channel, all you need is a camera and an internet connection. You can use a smartphone as well.
However, if you want to make more money, then invest in a good camera that can capture high-quality videos that will go viral.
Once you have enough views on your YouTube channel, you monetize it. Google Adsense allows you to put ads in between videos and earn money from them.
It’s important that you have high-quality videos on your channel so that people will want to watch them.
If your videos aren’t engaging, they won’t attract views or subscribers. Also, by writing compelling titles and descriptions for each video, you attract more views.
5. Create an Online Store
One of the easiest and most popular ways to make passive income in Canada is to start an online store.
An online store can provide you with a steady stream of income that you can use for all kinds of things.
If you have a product you can sell online, you could use this as an opportunity to create passive income that can grow over time.
There is a lot of money to be made selling online but it requires patience and a commitment to building your business.
The first step is to find an e-commerce platform that will allow you to set up an online store.
Shopify and Amazon are some of the best options. While it can take months to build up a customer base, once you’ve got a few hundred people buying from your store, that’s when the real profits begin.
6. Start a Blog
Blogging is another great way to make passive income in Canada. You can start your blog, or you can buy one.
While blogging requires a lot of effort from the beginning, once you can get your blog up and running, you will earn passive income from it for life.
To start a blog, it is best to choose a nitch related to your passion. For example, if you’re passionate about finance, it makes sense to create content about this niche.
Once you get enough visitors to your blog, you can go ahead and monetize it. There are several ways to monetize your blog, but the most popular one is through Google Adsense.
High-quality content is also important because it will increase the chance of being approved for Google Adsense.
It will also increase the chances of your content getting visitors who are looking for information on your chosen topic area or subject matter area.
7. Use Cash Back Apps
If you’re looking for some ideas to generate passive income in Canada, cash back apps are a great option.
These apps work by giving you a percentage of the money back on purchases that you make through the app.
There are several different cash back apps available, and each offers different rewards and features.
However, they all essentially work in the same way: you earn cash back on purchases you make through the app which can then be redeemed for gift cards or directly deposited into your account.
Some of the best cash back apps in Canada include:
8. Rent Your Spare Room
If you have a spare room in your house, you can make passive income with it while you sleep by renting it out on Airbnb.
This is one of the best passive income ideas for Canada because it can bring in money from a place that you already have.
Renters on Airbnb can choose from a wide variety of accommodations, including rooms, entire homes and even entire castles.
The service is perfect for anyone who wants to make some extra cash without having to invest any money into advertising or hosting events.
All you have to do is put up an ad with photos of your property with a little description and guests will contact you if they’re interested in staying at your place.
9. Lend on Peer-to-Peer Lending Platforms
Peer-to-peer lending platforms are an easy way to get a passive income stream without having to do the work yourself.
These platforms connect borrowers with investors who want to lend money, and they earn interest on the loaned funds.
There are dozens of them out there. To get started, you need to decide on which one you want to use based on your own needs and preferences and sign up for an account.
Once you’ve chosen a platform of your choice, you can start lending money to other people, who will then pay it back with interest. You can get your interest rate by week or month, depending on the platform you use.
It’s important to note that this type of loan has a high risk. This is because some borrowers may refuse to pay back the money they borrowed when due.
But the good thing is that lending on Peer-to-peer platforms has a potential for high returns.
So if you feel confident in your ability to make money from this type of lending platform, then it can be a great way to generate passive income.
Related: goPeer Canada Review
10. Rent Out Your Car
If you own a car and would like to make some extra money, renting it out on Turo can be a great way to do it.
You can rent out your car to people who are looking for a ride or to those who are looking for someone to pick them up from the airport or train station.
It’s a pretty simple process: You list your car on Turo and then set the rental price and payment terms. When someone wants to rent your car, they will contact you directly.
You can rent cars by the hour or day. So if you want to go on vacation and want someone else to drive your car while you are away, then this could be a great option.
11. Join Affiliate Marketing
Affiliate marketing is the process of selling products or services and earning a commission by promoting them to others.
You’ll need to sign up with a website that will allow you to promote products such as e-commerce sites, blogging platforms, social media platforms and more.
If someone clicks through the links you provided and purchases any product or service, then you’ll earn an affiliate commission.
You will be paid for every sale you make on your site, but the amount you earn depends on how many people click through from your website to the merchant’s site.
The good news is that there are hundreds of affiliate programs to choose from, so it’s not hard to find one that fits your needs.
Also, you don’t need any experience or expertise to start earning money with affiliate marketing — all it takes is patience and time.
12. Make Use of Credit Card Rewards
If you’re looking for a way to make passive income, using credit cards can be another great place to start.
Many credit card companies offer rewards when you use your cards responsibly (paying them off in full and on time).
With most of these cards, the more you spend, the more rewards you earn. These rewards can be redeemed for cash back or other perks like free flights, hotel stays and more.
You may also be eligible for bonuses on sign-up or new account openings as well as additional rewards on existing accounts.
The only problem is that it takes time to accumulate enough points or miles to redeem them for something useful.
13. Create an Online Course
Creating an online course can be a great way to build passive income. An online course can be very profitable, especially if you create a high-quality course.
You could create your course in the area of your expertise and share it with the world via Udemy, Skillshare, or other platforms.
Creating an online course takes time, effort, and patience. But it is well worth the effort because once you do start getting traction, you will see your revenue grow.
Therefore, if you are looking to build a passive income stream and have expertise in any area, then creating an online course may be one of your best options.
14. Sell stock photos
If you have a good camera and an eye for art, you can submit your photos to stock photography websites and earn royalties every time someone downloads one of your photos.
Websites like Shutterstock and iStock allow photographers to sell their images, and they take a cut of the profits.
This can be a great way to make money without having to put in a lot of hours, and it can be a nice supplement to your other income streams.
The amount you earn will depend on the popularity of your photo, but it can be a great way to generate some extra income with minimal effort on your part.
And best of all, once you’ve uploaded your photos, you can continue to earn royalties from them indefinitely.
15. Rent Out Your Pool
Another great way to earn some extra income is by renting out your pool. If you are one of the fortunate Canadians who have a pool, you could put it up for rent and earn some extra cash.
Many people are looking for a place to cool off during the hot summer months, so this can be a great way to earn money.
What makes this passive income idea a great one is that you will not have to do anything other than list your pool on a rental website such as Swimply.
Plus, it’s a great way to meet new people and make some new friends. But you need to make sure that your pool is clean and well-maintained before renting it out. No one wants to swim in a dirty pool.
16. Write an eBook
Writing an eBook is another profitable way to make passive income in Canada. You can sell your eBook through online bookstores such as Amazon Kindle.
Alternatively, you could create your website and sell your eBook directly to your readers.
This can be an excellent way to earn money, as you can typically charge anywhere from $2.99 to $9.99 per download.
The great thing about writing an eBook is that you can do it in your spare time and there are no upfront costs.
Also, once they’re written, they can continue to generate passive income for years to come with little or no maintenance required on your part.
So if you’re looking for a passive income stream that will allow you to make money while you sleep, writing an eBook might be the perfect option for you.
17. Rent Out Your Vehicle
Have an extra car that you’re not using? Why not make some money by renting it out? Turo is a company that allows you to do just that.
With Turo, you can list your car for rent and start earning passive income. Turo will pay you for every hour that your car is rented, making it a great way to make some extra money.
Just make sure that you’re aware of the risks involved in renting out your vehicle, and always use caution when sharing your car with someone you don’t know.
Overall, if you’re looking for a way to earn passive income in Canada, renting out your vehicle can be a great option.
18. Find Freelance Jobs
Freelancing is a type of job that allows you to work according to your schedule. You can work from home, or anywhere else. All you need is a computer and a strong internet connection.
Many websites offer freelance job opportunities such as Upwork. You can search for jobs by keyword or category.
With a little effort, you can easily find a freelance job that suits your skills and schedule.
You can also set up a profile so that potential employers can find you. When you find a job that suits your skill set, you can apply with your samples and payment rate.
If the employer likes your samples, they will award you the job and you can get started working right away.
19. Become a Resume writer
In today’s competitive job market, a well-written resume can make all the difference in whether or not a candidate gets an interview.
As a resume writer, you can help job seekers create resumes that will capture the attention of potential employers.
And best of all, you can do it from the comfort of your own home, setting your hours and rates.
However, if you are considering becoming a resume writer, there are a few things you should keep in mind.
Firstly, you will need to have excellent writing skills and be able to produce high-quality work.
Secondly, it is also important to have good marketing skills and be able to promote your services effectively.
If you can meet these requirements, then becoming a resume writer could be the perfect passive income opportunity for you.
20. Create an App
Developing and selling an app can also be a great option for earning passive income in Canada.
There are millions of people all over the world who use apps daily, and if you can create a useful app, you can quickly see a return on your investment.
You can sell your app on Apple App Store or Google play store. Once it’s downloaded, you’ll continue to earn revenue every time it’s used.
The best part is that you don’t need to do any ongoing work to maintain the app or generate sales, so it’s a great way to earn money without having to put in a lot of effort.
So if you’re looking for a creative way to make money, creating an app is worth considering.
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Passive income is especially important in today’s world where many people are struggling to make ends meet.
If you are looking for a way to generate some extra income without having to work long hours, then you should consider it.
Fortunately, Canada has plenty of opportunities and this article has provided you with several to choose from. All you have to do is pick any of the ideas you are comfortable with.
We hope that you enjoyed reading this article and that it helps to make your search for a passive income idea in Canada easy.
Be sure to check out our other related articles. And don’t forget to share this article with your friends if you found it helpful. Thanks for reading!