15 Proven Passive Income Ideas in Canada 2024
Are you looking to make passive income in Canada? Your search ends here!
Without a doubt, passive income is an excellent way of creating an additional source of income.
Whether you’re looking to supplement your current income or just make some extra cash on the side, there are many options available.
However, with so many passive income ideas out there, it can be difficult to decide which ones are worth your time and effort.
To help you narrow down your search, this article aims to simplify things and make it easy for you to find the best passive income opportunities in Canada.
In the end, you should be able to determine the best passive income idea for you in Canada.
What is Passive Income?
Passive income refers to any type of earnings you make without having to spend a lot of time or resources. It is a great way to increase your monthly income.
“Passive” means that the activities don’t require your constant attention; you are free for other work.
This type of income could be money you make while doing something you enjoy, apart from your regular job or business.
Passive income could be ideal for you regardless of your profession so far you’re looking for additional means to supplement your monthly income.
With passive income, you’ll be able to dedicate your time to the things that matter while earning extra income. This will allow you to live your dream lifestyle and achieve financial freedom.
Why Do You Need Passive Income in Canada?
You might be asking yourself, why do I need a passive income? Frankly speaking, there are many reasons why you need a passive income.
Let’s take a look at some of the top reasons why it is essential to have a passive income in Canada:
1. Improve 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.
2. 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.
3. 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 generate revenue even when you are no longer working.
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. Debt Payment
Have you ever considered how it would feel to be debt-free? The good news is that you can maintain your current lifestyle with a passive income while paying off your debt fast.
Therefore, you need to find a suitable passive income to create a steady income that will help you not to miss your monthly debt payment.
15 Passive Income Ideas in Canada
Nothing can be compared with the feeling of earning money without putting in much effort.
But the challenge is that there are many passive income ideas in Canada. This makes it essential to compare different available options so as to choose the best one.
Here are 15 passive income ideas in Canada that yielded significant returns to thousands of Canadians:
1. Invest in Real Estate
Investing in real estate is another way to make passive income in Canada. If you have the means to acquire properties, whether by taking out a mortgage, you can rent out the properties to earn passive income.
You’ll need time to research the market and find suitable properties, as well as money for down payments and other costs like maintenance.
You’ll also need to spend time finding tenants and managing the property. However, once that’s done, you can collect rent passively while someone else lives in your home.
2. Create an App
Creating an app is another way of making passive income in Canada. Many apps have earned their creators millions of dollars.
The idea behind making an app is simple: you choose a problem, create a solution and market it. If your app takes off, you will make money while you sleep.
You can sell ads on your app, or charge users to download it. Either way, it’s a great way to earn money without having to do much work once your app has been created and published.
3. Become a Resume Writer
A resume is a document that provides the employer with detailed information about the job seeker’s skills, abilities, and accomplishments.
Writing resumes is a great way to make passive income in Canada. You can set your prices, and you can choose how many people you work with at any one time.
You can advertise your services on freelance websites like Upwork, or by setting up a website of your own.
4. Rent Your Spare Room
If you have a spare room in your home, renting it out on Airbnb can earn you passive income in Canada.
Airbnb is an online marketplace where people can list their properties or rooms they have available for rent.
The amount of money you’ll make will depend on the location of your property and the demand for it.
In an area with high tourism, you can expect to get a high rental fee for your place.
5. Start a Blog
Blogging is another way to make passive income in Canada. You can start a blog about anything you like.
If you’re passionate about something, that’s great because it means you’ll have plenty of ideas to write about.
Once your blog begins to attract an audience, it will be time to monetize it.
You can do this by applying for Google AdSense and running ads on your site. When visitors click on these ads, you earn revenue.
Blogs also earn money through affiliate marketing. That means companies will pay you to promote their products on your blog.
Here’s a FREE course on how to start and make money blogging in Canada.
6. Start a YouTube Channel
Starting a YouTube channel is another great way to make passive income in Canada. All you need is a camera and an internet connection.
You can start by creating a simple YouTube channel and building an audience. Create consistent content that you know your audience will enjoy.
Once you build up an audience and get more subscribers, the potential for passive income increases. The more videos you post, the more potential there is for passive income.
Also, you can monetize your YouTube videos with Google AdSense, which will place ads on your videos. As viewers click on those ads, you’ll earn money from AdSense.
7. Become a DIY Investor
DIY investing is the process of buying and selling securities without the help of a financial advisor.
This type of investing allows you to save on fees and commissions, allowing more money to grow in your portfolio. This means you can keep more of the gains instead of paying someone else to do it for you.
The main benefit of DIY investing is that you are in control. You choose what stocks and bonds you want to invest in. You can buy stocks, bonds, mutual funds, ETFs, and GICs through a DIY investing platform.
There are many great platforms out there in Canada such as Questrade and Wealthsimple Trade that you can use to accomplish your DIY investment goals.
8. Open a High-Interest Savings Account
Opening a high-interest savings account is another great way of making passive income in Canada.
A high-interest savings account is an account that pays a higher rate of interest than the typical savings or chequing account.
With this type of account, you can earn anywhere from 0.50% to 3% or more, depending on your bank and the type of account you open.
There are plenty of banks that offer these accounts and they are quite easy to find. Some of the examples of high-interest savings account in Canada are:
- Simplii Financial High-Interest Account
- EQ Bank Savings Plus Account
- Saven Financial High-Interest Savings Account
- Neo Financial High-Interest Savings Account
- Tangerine Savings Account
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9. Create an Online Course
If you have a skill or expertise you want to share with others, creating and selling online courses could be a lucrative option for you.
You can sell your course on websites like Udemy or Teachable where people can pay for access to your content and resources.
The best part about creating an online course is that once you have created it, you can sell it over and over again without any additional work from your side.
10. Use Cash Back Apps
Cash back apps are a great way to earn passive income. Many apps offer cash back incentives for shopping at specific stores or buying specific products.
This can be done through mobile apps or through websites that allow users to enter their credit card information and receive cash back rewards for every dollar spent.
In most cases, it is possible to earn up to 50% cash back on every purchase made using this method.
You can also use a cash back app like Checkout 51 or Drop to get money back on your purchases.
11. Join Affiliate Marketing
Joining affiliate marketing is an easy way to make money in Canada. You don’t need any specialized skills to join affiliate marketing and can start earning passive income almost immediately.
As an affiliate marketer, you’ll be promoting products or services offered by other companies.
Whenever someone clicks on your link and makes a purchase, you’ll earn a commission fee.
12. Take Online Surveys
Another way to make money online is to take online surveys. You won’t get rich, but you can make a little extra cash if you have the time and patience for it.
All you need is a free account with a survey site like Swagbucks or Survey Junkie, and give your opinion about products and services.
The amount of time it takes to complete the survey and how much you will earn depends on the company and the length and content of the survey.
Also, you may want to consider taking surveys with multiple services at once so you can maximize your earnings.
13. Sell Products Online
If you’re someone who has a product idea, you can create an online store and start selling your products.
Sites like Shopify and Amazon have made it so much easier for Canadians to start their online businesses and make money while they sleep.
There are a ton of ways you can sell products on the internet. You can create your products from scratch, import and resell physical goods from suppliers overseas, or even sell digital products that you don’t have to buy or ship.
Alternatively, if you don’t want to do everything yourself, you can also dropship. Dropshipping is when you find a supplier and they ship the products directly to your customer.
This lets you focus on marketing and selling while someone else handles the product creation and shipping.
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14. Find Freelance Jobs
There are many freelance jobs you can do online depending on your skillset. As a freelancer, you can work from home or anywhere else.
The pay varies, but it could be a decent amount if you’re skilled in certain fields. Some freelancing sites are Upwork and Freelancer.com.
These are websites where clients post jobs and freelancers bid for the jobs.
15. Write an Ebook
E-books have become very popular as they can be read anywhere and at any time.
This makes them ideal for busy people who want to get educated while they are at work or travelling home after a long day at work.
If you have excellent writing skills, creating e-books is another way of getting passive income in Canada.
All you have to do is, find a topic that interests you the most, and write and publish it.
The best part is that even after you write and publish your ebook, it will continue to generate income month after month with little effort on your part.
How to Choose the Best Passive Income in Canada
There are some things you must consider before choosing one of these ideas. Here are some tips to keep in mind:
1. Determine Your Passion
Find something you’re passionate about and will enjoy for years to come.
When you know what you want out of life, finding a business that fits that lifestyle and making money doing it becomes much easier.
2. Consider Your Skills
If you want to start earning passive income on the side, it’s important to consider your skills.
Your expertise in certain areas might be what you need to get started in a passive income venture.
3. Decide on Your Target Earning Amount
Before you can decide on which passive income stream is right for you, you’ll need to decide how much money you want to earn.
This will help determine how much effort you need to put upfront to get your passive income stream off the ground.
4. Determine Your Time Commitment
Based on your target earnings, you should determine the time you can invest in passive income.
This will help you choose the best passive income idea for you and help you avoid taking on too much.
Things to Be Aware of When Choosing a Passive Income Idea in Canada
Making passive income has become so popular these days, and there are a lot of opportunities out there.
However, there are many scams surrounding passive income in Canada. These scams come in many forms, and at varying degrees of severity.
If you want to start making money passively in Canada, here are the top things you should look out for to ensure that you don’t get scammed:
- Get rich quick schemes
- Paying your way into a job
- Promises of a guaranteed return on investment
- Make money fast courses
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Takeaways on Passive Income in Canada
There are numerous ways of making passive income in Canada. As a result, choosing the best one can be overwhelming.
However, choosing the right passive income idea is not as difficult as it may seem.
You just need to choose something that you have some background or interest in, or you will be less likely to stick with it.
After all, you don’t want to choose an idea that’s too hard to implement or one where you have to learn a new skill.
I hope this article has shed some light on helping you choose the best passive income that fits your needs, interest and skill level.
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FAQs on Passive Income in Canada
Is passive income taxable in Canada?
Yes. Any profits you realize through the sale of your investment in a passive income activity or the sale of a property that produces passive income are subject to taxation.
Does rent count as passive income?
Most rental property revenues are classified as passive income even if the property is actively managed by the owner.
What is the difference between passive and active income?
Active income requires you to put in the time, but passive income enables you to generate money with little or no effort on your part.
Are royalties passive income?
Because royalties are calculated as a proportion of sales, they can be regarded as a passive income.
Have more questions? Kindly drop them in the comment section below.
