Now more than ever, you need to get some passive income ideas in Canada to meet teaming financial needs. Imagine you don’t have to work much but earn so much money! That is something liberating! But the question is, What would you pay to have more time to do what you genuinely enjoy? If we should answer that question, we advise you to give up anything!
Although there is no get-rich-quick path to blow suddenly, you will need to invest a little of your time and money to achieve the financial freedom you’ve always envisaged. So it’s high time you started to add innovative work to hard work. Actively working for money is similar to filling up a basket with water. It would never get full!
Keep reading this article as we reveal the 20 top lucrative passive income hacks you should start doing.
What is Passive Income?
Before you rush to implement these passive money hacks, let’s make you know the basics. What is passive income? Passive income is income you earn or make every minute, second or day with little or no effort. This money keeps coming whether you are sleeping or waking up. Usually, the efforts you put into a passive job do not equal the money you make. The income is generally higher than the work. This is because of an already laid down work. To earn passive income, you must have put down some effort for it to yield. That is why it can take a long time for your hard work to accumulate before you hit the jackpot!
In addition, people use passive income ideas together with other sources of income, such as a side hustle. This helps them build financial independence and plan toward early retirement as they will continue to get their revenue regardless of whether they are physically active in the job.
Note: According to Canadian law, passive income is taxable. When you are looking to generate passive income, you should seek the advice of a legal professional. With this backing, you’re good to go.
Top 20 Lucrative Passive Income Ideas Canadians should Leverage on.
Here are some of the top 20 passive income ideas in Canada you should start channeling your efforts into right now:
#1. Use a Robo-Advisor to Invest
One sure way to earn big while sleeping is to invest with Robo-advisors. What are Robo-advisors? Robo-advisors, aka wealth managers, is online or mobile apps that provide automated financial advice and services. It gives digital financial advice that is based on mathematical laws or algorithms. As of October 2017, Robo-advisors made $224 billion as assets under management.
Today, the Robo-advisor market is worth a trillion dollars. It provides excellent returns, including the opportunity to double your investment in months. Ordinarily, you can earn 5 -10% per year in the long run. Plus, sometimes, it has a low start-up cost. Check out Wealthsimple.com https://my.wealthsimple.com/app/public/promo. One of the most popular robot advisors in Canada.
While you can manage your portfolio, it can be difficult for someone with little investment knowledge or time. That is why you should compare various options and choose one that best fits your needs. In addition, you may be made to pay a small fee for their services. Still, it is usually worth it because it is less expensive than working with traditional methods. In contrast, the Robo-advisors market is a high-risk job and only for the strong-hearted. This is because returns are not guaranteed, and the market can fluctuate.
#2. Invest in Dividend Stocks
Another tremendous passive income idea for you is to invest in dividend stocks. But before you begin, we recommend you do a little market survey. Look out for trusted companies with a proven track record of paying dividends. Good examples include Fortis, Canadian Utilities, and TC Energy.
While there are many ways to make passive income from stocks, stocks gain value and pay mouth-watery dividends. For instance, you do not have to do anything if you have a share in a company’s profits. All you need to do is to invest, and when the dividends are ripe, you will get yours. Alternatively, you can use an online broker to trade for you or go the traditional way. Finally, keep in mind that dividend income is taxable. The gross-up rate for non-eligible dividends is 15%, while the rate for eligible dividends is 38%.
#3. Open a High-Interest Savings Account
Another high-paying passive income idea in Canada is to open a high savings account. While you may have bought into the ‘loyalty’ trick, consider switching your savings account to an online bank that pays the interest that exceeds the inflation rate. The reason is that traditional banks have long stopped paying decent interest on savings accounts.
Although with a 1-2 percent return, a high-interest savings account will not make you wealthy. But they are low-risk investments ideal for short-term savings, emergency funds, or conservative income sources in retirement. Check out EQ bank and TFSA for savings with an interest of 1.50%.
#4. Invest in REITs
Another excellent passive income idea in Canada is investing in Real Estate Investment Trusts (REITs). REITs are investment organizations that own, operate, and finance real estate that generates revenue. REITs are safe because they are managed by experienced investors who understand the market and can safeguard your savings.
Generally, REITs pay out significant revenues and provide double-digit returns. But, like most investment options, returns are not guaranteed. It is left for you to compare different REIT options and choose the best one for you. Remember that REITs perform well during bull markets but suffer during bear markets. But you don’t have to fear since the governing body will bear all the financial responsibilities.
#5. Start a YouTube channel
This is one noble passive income idea you can start in Canada. You don’t need so much money to start a YouTube channel. However, you might need to subscribe to YouTube premium to enjoy fantastic services.
- To begin, think of content you want to create and that you’re good at. You can do any content ranging from fun places you have visited, video training, how to cook some local and international cuisines, how to braid hair, etc.
- The next thing is to sign up for a YouTube channel. Use your google account to sign up and complete basic information such as the name and description of your channel. Make sure you choose a unique name that portrays your brand.
- Next, Start updating the contents. YouTube is very competitive, and you will like to post unique content to have views. Make sure your content is original, interesting, and educating. Also, be informed about piracy. YouTube does not tolerate piracy in any form. If you try it, your account may be blocked.
- Monetize your channel and make cool cash. The next thing is to monetize your channel. You need to reach basic requirements before you start getting paid. You must have 1,000 subscribers and at least 4 000 watch hours. You will make about $18 per 1,000 ad views and $5 without ads.
#6. Rent out your swimming pools
Do you have a swimming pool? Consider renting it out to generate passive income. However, it depends on the location and size of your pool, and additional features like pool toys and lounge chairs. Platforms like this can make you make cool cash from your pool – up to $100 per hour. That’s quite a lot of money, but it is not without risk.
While this may appear to be a quick and easy way to make a lot of money, keep in mind that it is hazardous; if a visitor is injured, hosts may face legal action. Therefore, in most cases, it is the homeowner’s responsibility to ensure that everything is safe and functional.
#7. Start a niche blog
If you are looking for some lucrative passive income ideas in Canada, starting a niche blog could be a great option. Blogging is a great way to share your passions with the world, and it can also be a very profitable venture. There are many ways to make money from blogging, including advertising, affiliate marketing, and product sales.
One of the exciting things about blogging is that you don’t need any special skills or experience to get started. All you need is a computer and an internet connection. You can also start a blog for free using one of the many platforms available online.
You could choose to focus your blog on many different niches. The key is to find a topic that you are passionate about, and that has a large audience. Once you have chosen a niche, it’s important to create informative and engaging content.
#8. Start an eCommerce dropshipping business
Dropshipping is a business model in which eCommerce entrepreneurs sell products without keeping any inventory. Instead, when a store owner receives a customer’s order, they simply contact the supplier, who ships the products directly to the customer’s door. In addition, dropshipping apps such as Oberlo allow you to add products from various suppliers to your shop to expand your product offering.
Dropshipping is an excellent business model for first-time eCommerce entrepreneurs. It is simple to set up and manage, and it does not necessitate a large initial investment. You can also run your dropshipping business in your spare time if you don’t want to quit your job. Furthermore, you can use several dropshipping tips to increase your store’s traffic.
#9. Invest in a rental property
When you think of rental properties, you may think of large homes rented out to families. While this can be a lucrative way to make passive income in Canada, there are other options for rental properties.
Smaller homes and apartments can be just as profitable and often come with less competition. So if you’re looking for a passive income idea in Canada, investing in a rental property is a great option.
You’ll need to research to find the right property, but if you can find a good deal and manage it well, you could see some great returns. Remember that some risks are associated with this type of investment, but if you’re prepared for them, renting out property can be a great way to make money.
#10. Make A Mobile App
The number of mobile app users has risen dramatically in recent years. In fact, according to Statista, as of January 2019, there were 2.2 billion active app users worldwide. So you could have a very lucrative passive income stream if you know how to code and create a mobile app.
It would be best to consider several things before starting your mobile app development journey. First, you need to decide what type of app you want to create. There are several different types of apps, including gaming, lifestyle, and productivity.
Once you’ve decided on a type of app, do some research to see if there is already an app on the market that does something similar. If there is, you’ll need to devise a way to differentiate your app from the competition.
#11. Write books for Amazon
It’s no secret that Amazon is a powerhouse for selling books. Many authors are now choosing to self-publish through Amazon because of the lucrative passive income opportunities it offers. What you may not know, however, is that Amazon also offers several helpful resources for Canadian authors looking to write and sell books.
Amazon provides detailed information on its website about which genres are selling best in Canada and how to format your book for Kindle and print. They also have extensive resources for marketing your book, from creating a book trailer to building an author website. And suppose you’re ever stuck on what to write about next. In that case, Amazon’s “Kindle Singles” program offers quick, easy-to-read stories and essays from some of the world’s best writers.
#12. Sell online courses
There is another lucrative passive income idea in Canada that comes into mind. One example is to sell online courses. This can be done through sites like Udemy, which allow instructors to create and sell online courses on various subjects. Instructors can earn royalties on each course sale, and there is no limit to the number of courses sold. This is a great way to generate passive income, as little work is required once the courses have been created.
Additionally, Canadians can take advantage of the growing demand for online courses; according to Forrester, global spending on online education is expected to reach $325 billion by 2025.
#13. Invest in farmland
Farmland is one of the most important resources in Canada. It is used to produce food for the population, and its value continues to increase as the population grows. So, investing in farmland is an excellent option if you’re looking for a lucrative, passive income idea.
The value of farmland has been increasing at a rate of about 5% per year. That means if you invest in farmland now, your investment will be worth more. In addition, farmland provides a stable income stream. The revenue from crops can be counted each year, regardless of the ups and downs of the stock market.
There are several ways to invest in farmland. For example, you can buy shares in a farming company or land. In addition, several funds invest exclusively in Canadian farmland.
#14. Invest in cryptocurrencies
Cryptocurrencies are becoming more and more popular each day. With Bitcoin reaching an all-time high in December 2017, many people are looking to invest in cryptocurrencies to generate passive income. Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units.
Cryptocurrencies are decentralized, not subject to government or financial institution control. This makes them attractive to investors who want to avoid government intervention and censorship.
Several cryptocurrencies are available for investment, but the most popular by far is Bitcoin. Bitcoin is the first and largest cryptocurrency, with a market capitalization of over $250 billion. Other popular cryptocurrencies include Ethereum, Litecoin, and Ripple. Cryptocurrencies can be purchased on several online exchanges or through a cryptocurrency wallet app.
There are two ways to make money with cryptocurrency:
- Sell when prices rise
- Invest in cryptocurrency and earn up to 4% interest.
- You can start with as little as $5; there is no upper limit, but be cautious.
- Binance is one of the best cryptocurrency exchanges.
- It is safe and secure and enables users to generate passive income by investing in digital assets.
#15. Purchase vending machines
When it comes to finding lucrative passive income ideas in Canada, buying vending machines is a great option. Not only are they relatively low-cost to purchase and maintain, but they can also generate a healthy return on investment over time. Many business owners report earning a five-figure passive income yearly from their vending machines.
However, there are a few things to remember when purchasing vending machines. First, finding a good location for your machines is crucial and ensures a high demand for their products. You’ll also need a solid sales and marketing plan to make your machines profitable.
Buying vending machines may be the perfect option if you’re looking for a reliable and profitable way to generate passive income.
#16. Become a franchisee
When it comes to lucrative passive income ideas in Canada, becoming a franchisee is hard to beat. Not only do you get the benefit of a proven business model, but you also get the support of a larger organization. This can be a great way to jumpstart your own business and achieve passive income success. Big brands like KFC and McDonald’s comes to mind. However, qualifying for it cannot be easy.
There are many different types of franchises available, so it’s essential to research and find one that fits your interests and skills. Then, once you’ve found the right franchise, it’s necessary to understand what’s involved in becoming a franchisee.
There are usually several steps involved in the process, including completing an application, attending an interview, and signing a contract. Having the financial resources to cover the initial investment and ongoing costs associated with running a franchise is also important.
#17. Rent out domain names
Domain names can be rented out to businesses for advertising purposes, which can be a lucrative way to make passive income in Canada. By registering a domain name and then renting it out to a business, you can earn money every time the business uses the domain name for advertising. This is an entirely passive way to make money. You can continue to rent out the domain name as long as it generates revenue.
#18. Rent Your Car On Turo
If you’re looking for a lucrative passive income idea in Canada, renting your car on Turo is a great option. Turo is a car rental marketplace allowing people to rent their cars to others. This can be a great way to make extra money, especially if you don’t use your vehicle often. You can set your rates and availability, and Turo handles all the booking and payment processing. Plus, you can rest assured that your car is in good hands, as all Turo renters are screened and verified. So if you’re looking for a way to make extra money, consider renting your car on Turo.
#19. Sell your ideas
Several lucrative passive income ideas in Canada can provide a steady income stream. One such idea is to sell your ideas. So if you have a great idea, don’t keep it to yourself-sell it!
There are several ways to do this, including patenting your idea, licensing it to another company, or crowdfunding. Then, when you’re ready, look for companies that might be interested in your idea on websites like Hoover.
By selling your idea, you can create a passive income stream that will continue to provide you with revenue long after you’ve created it. So if you’re looking for creative ways to make money in Canada, consider selling your ideas.
#20. Put an advertisement on your car
When it comes to making money, some people are all about finding the most active and aggressive ways to do so. Others are content with finding more passive and laid-back opportunities. If you’re looking for the latter, you may want to consider putting advertisements on your car. Believe it or not, this is a very lucrative way to make passive income in Canada – especially if you’re living in a large city.
In addition, a few companies out there will pay you to drive around with an advertisement on your car. You can usually expect to make about $100 per month, which isn’t a lot, but it’s a passive income source that doesn’t require much effort.
Suppose you’re interested in this type of opportunity. In that case, we recommend checking out some companies: Carvertise, Wrapify, Drivertise, and My Free Ads. All three companies are legitimate and have been around for a while. They also offer different ad campaigns, so you can find one that best suits your needs.
See Also: How to Become Rich in Canada: 10 Steps
In conclusion, Canada has many great ways to achieve passive income. Whether you want to invest in real estate, stocks, or a business, there is something for everyone.
With some research and planning, you can create a passive income stream that will provide you with a steady flow of income for years to come. So what are you waiting for? Start exploring your options and get started on your path to financial independence today!