40 Creative Ideas For Earning Passive Income In Canada

August 3, 2020
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Everyone wants to earn extra money. We all have hobbies that we want to spend money on, from that car we want to buy to that vacation we want to take. However, our 9-5 job doesn’t really allow us to do that.

The solution to this problem, for a lot of people, is passive income. Passive income is automated and doesn’t require your time or attention and keeps earning you money in the background. It usually grows over time as well.

In this article, we’ll go over 40 ways in which you can make passive income in Canada. You’re bound to find one to your liking. Our top picks are investing in mutual funds, working with robo advisors, and using cashback apps.

What Is Passive Income?

There’s a good chance that you already know what passive income is. If you’re familiar with it, just skip over this and go over to the next section. Now, just to be sure, let’s briefly go over what we mean by passive income in Canada.

In its most basic form, passive income means money that you keep earning without having to make an active effort. However, this doesn’t mean it’s a totally effortless way to make money.

In the beginning, you often have to work hard to have a stream of money coming to you from your source of passive income. But, once the process is streamlined (we’ll go over that later), you can simply sit back and relax as you make money without having to move a muscle. Great, isn’t it?

In contrast, active income is what you earn by working on your daily job or business. It’s what you get when you apply effort and time into something to reap a reward. The difference between this and passive income is that you stop making money the moment you stop putting in hours.

As you may have already guessed, passive income in Canada is a huge business.

What Passive Income Actually Is

With the ‘official’ definition out of the way, I’ll get down to what passive income is for you.

Personally, I think passive income is a way of monetizing yourself. It’s a way to express yourself. Before you choose one of the 40 passive income ideas in Canada, you should look reflect upon yourself. Ask yourself what sort of person you are. Are you creative? Make music and sell it. Do you like to play really safe? Invest in GICs. What skills do you have? Offer them electronically and make cash.

Having a good, long look at yourself will help you make the right choice. It’ll also ensure that you stick to your passive income until it really starts paying off. Stop seeing passive income as a way to make quick, cheap money, and more as a way to really express yourself. We all know 9-5 jobs don’t usually allow that.

How To Make Passive Income In Canada?

Earning passive income in Canada is, for the most part, like earning passive income in other countries. While some are general, we’ve selected lots of choice ways to do it that’s specific to Canada.

Here are all the 40 ways to make passive income covered in our post:

#1 Robo Advisors#11 Rent Out Your Car#21 Advertisements To Generate Revenue#31 Outsource Your Freelance Work
#2 Running A Blog#12 Credit Cards That Offer Cash Back#22 Selling Leads#32 Create Guides For A Niche
#3 Selling E-books#13 Cashback And Discount Apps#23 Start A YouTube Channel#33 Putting Advertisements On Your Car
#4 Peer-to-Peer Lending#14 Affiliate Marketing#24 Get Rid Of Debt#34 Consult A Financial Advisor
#5 Renting Out Your House#15 E-commerce Store#25 Refinance Your Mortgage#35 Invest In Annuities
#6 Publishing A Course#16 Launch An App#26 License Music Or Buy Royalties#36 Invest In Mutual Funds
#7 Savings Accounts#17 Sell Stock Photos#27 Selling With Amazon FBA#37 RRSP Accounts
#8 Invest In Dividend Income#18 Company Referrals#28 Guaranteed Investment Certificates#38 Selling On eBay
#9 Invest In Real Estate Through REITs#19 Subcontract Services#29 Open Up A Laundromat#39 Design WordPress Themes
#10 Invest In The Stock Market#20 Dropshipping#30 House Sitting#40 Participate In Scientific Research

Here Are The 40 Best Passive Income Ideas In Canada

Disclaimer: These ideas are not ordered in any particular way.

#1 Robo Advisors

Managing your investment portfolio can be a nightmare. If you’re a beginner and have no idea how to invest, you’re going to have a hard time. It’s not just knowing where to invest, but also the pressure that comes with trying to make a wise decision, in the midst of stock prices rising and falling every day.

Initial Time RequiredLow
Skills RequiredNone
Money RequiredLow
Risk to Reward RatioLow risk, medium reward
Recommended ForAnyone who wants to start investing small amounts of money and get into investing.

We, humans, are naturally risk-averse creatures. Due to a lack of information, you might sell some stocks today that could come in handy years later, just because right now they weren’t looking profitable. The obvious option for beginners is to let a professional handle their finances for them, but these come at a cost. Additionally, fund managers usually have minimum amounts of money that they’re willing to deal with.

The alternative is robo advisors. They do pretty much the exact job that fund managers do and have a clean interface to boot. Furthermore, robo advisors don’t have high fees or minimum investments either.

Here Are Some Great Robo Advisors

Wealthsimple, Nest Wealth, and ModernAdvisor are some robo advisors that could keep the passive income coming without any stress. They’re programmed to invest your money for you according to your risk tolerance. But if you still don’t trust the algorithms, some of these services (not all) even let you get advice from real professional portfolio managers, so you can clear any doubt you may have and make the best investments.

Are robo advisors the best way to make passive income in Canada? Perhaps not. They’re definitely easy, though.

#2 Running A Blog

Notice how the title is worded: “running a blog” and not “starting a blog”. The reason behind this is that starting a blog will take a ton of effort, as well as the time of course. Depending on what you write about, you might find yourself working on your blog for around 10-20 hours a week.

Initial Time RequiredMedium-High
Skills RequiredLow- Medium
Money RequiredStarting from scratch: Low
Purchasing a blog: High
Risk to Reward RatioStarting from scratch: Low risk, high reward
Purchasing a blog: high risk, high reward
Recommended ForAnyone with writing skills or knowledge on how to keep an audience. Blogging is a great way to make passive income in Canada.

If you’re already working on a full-time job, this might be pretty hard. For some people, it can be nearly impossible.

It Really Depends On Your Budget

However, starting a blog yourself may be the best way to go if you have the will to do so. You’ll learn a lot along the way, for example, You’ll get knowledge on SEO (Search Engine Optimization), on how to market your blog and how to grow it. This experience can be hugely valuable later on, both for personal projects or to employers when looking for a job.

You might not want to put in that work, though, and we also have a solution for that. If you have the money, you could just as easily purchase a blog that’s already performing well. There are plenty of websites like Flippa that have blogs for sale. The next step would be to hire a team of writers, editors, and managers to keep running your blog for you.

From here, you could take a more active approach or just step in to deal with anything that requires your attention. Other than that, just continue your life while your blog keeps bringing in the passive income. Naturally, we highly recommend that you start a blog by yourself. It’ll be difficult, but you’ll reap greater rewards in the long run. On the whole, it’s one of the best ways of making passive income in Canada out there.

Related: Learning Search Engine Optimization is a great skill to have if you want to get into blogging.

#3 Selling E-books

Selling e-books is somewhat different from having a blog. The difference is that e-books are even more complicated to write since you’re required to write over 15,000 words on a specific topic. Unless you’re an absolute expert in your subject -in which case I advise you to write a book-, you should only try this if you’re willing to take a long time before seeing any payoffs.

Initial Time RequiredWriting an ebook: High
Purchasing an ebook: Low
Skills RequiredWriting an ebook: High
Purchasing an ebook: None
Money RequiredWriting an ebook: Low
Purchasing an ebook: Medium
Risk to Reward RatioWriting an ebook: Low risk, medium reward
Purchasing an ebook: Medium risk, medium reward
Recommended ForAnyone who has great topics for ebooks. If you think it’ll sell and people want to read about it, publish it.

The other problem with selling e-books is the time it takes to write them. If you have a full-time job, it’s certainly not going to be an easy prospect. You might be able to pull it off, but chances are that if you’re anything like me, you’re going to burn out after a single book. And that’s doesn’t even guarantee you’ll see a good return.

You Can Have Someone Else Write Your Book

Thankfully, there are alternatives that could help you out. There are Canadian companies like The Urban Writers that can fill in this time gap for you. All you need to provide them with is a topic and some guidelines, and their ghostwriters will write your book in a designated amount of time (with your name on it).

This book will be legally yours. You could self-publish on Amazon (or elsewhere, if you’d like). If you have the money to do so, you can keep publishing a book or two every month, and keep the steady stream of money from the books you sell growing.

#4 Peer-to-Peer Lending

Giving loans from online sources like Lending Loop is great because you can make great returns. You lend money to your peers and make profits when they pay you back.

Initial Time RequiredLow
Skills RequiredLow
Money RequiredLow
Risk to Reward RatioLow risk, medium reward (risk depends on investment type)
Recommended ForPeople who want to have steady returns on their investments and prefer giving out loans to individuals.

You can even make 10% of your investments within a year with diversified portfolios. You can see the history of each peer you lend your money to, and the whole system benefits everyone. Some other peer-to-peer lending platforms for Canadians are Mintos, Crowdestate, and ReInvest24.

Over time, you can have a full-fledged portfolio and start making riskier investments that have bigger returns. Or, you can stay safe and keep a slow but steady stream of passive income coming your way.

#5 Renting Out Your House

If you own a spare house or have a spare room in your home, you could easily use either to gain more money without having to put in a considerable effort. There’s a number of ways to go about it.

Initial Time RequiredMedium
Skills RequiredLow
Money RequiredNone
Risk to Reward RatioLow risk, medium reward
Recommended ForAnyone with a spare house or room, pretty much.

You could simply rent out a single room to a tenant. This comes with its ups and downs, of course. Your tenant might be a difficult person, so it’s important that you have a good look at whom you’re inviting to live on your property.

However, a good many people are usually looking for a room to live in, as it’s cheaper than an apartment and simpler than living with roommates.

passive income canada

It’s one of the safest ways of making money. You literally have to do nothing and maintenance will be at a complete minimum. If you wish, you can talk to a property management agency and they’ll handle your tenants and maintenance for you.

Letting an agency handle your property has an advantage when it comes to legal issues, so we’d highly recommend that.

Get Your House Listed On Airbnb

Alternatively, you could list a spare room or a house on Airbnb, if that’s a road you’re willing to go down, although that too comes with its pros and cons. You might have to deal with negative reviews and the like, but on the bright side, you won’t be stuck with a tenant for a long period of time.

It’s not as steady as renting your house would be, but depending on your location, it might pay off more.

#6 Publishing A Course

If you’re knowledgeable or skilled in a certain area, you could create a course and publish it on Udemy or Teachable. In the beginning, this option will also take some work, and you may need to learn how to edit videos and produce content.

Initial Time RequiredMedium-High
Skills RequiredHigh
Money RequiredMedium- High
Risk to Reward RatioHigh risk, high reward
Recommended ForAnyone with knowledge or experience in a marketable skill that people want to learn.

Alternatively, you could also pay someone with editing skills to help you produce better videos. It just depends on how much money you have to invest.

Tip: The key advantage of course publishing is that it doesn’t have too much competition. However, if you go for a field that’s already crowded, you might have difficulty penetrating the market. If you choose this route, you’ll need to be really confident in the content you’re creating, so make sure it’s the best work out there.

Once your course is published, you’ll have minimal interaction with it. You may have to answer questions from time to time, but anything other than that is optional. A successful course can turn into a steady stream of money. Courses can sell for as little as $5 (or even free, if you want) and even higher than $100. It all depends on you.

#7 Savings Accounts

Savings accounts are perhaps the most boring and least profitable of all ways to earn passive income in Canada. You simply put your money in a savings account and let it grow over the years.

Initial Time RequiredNone
Skills RequiredNone
Money RequiredLow
Risk to Reward RatioLow risk, low reward
Recommended ForCanadians who simply want to store their money and aren’t interested in anything complicated and time-taking.

We’re not talking about regular savings accounts, of course. There are plenty of high-interest accounts that will help you earn more. Even then, savings accounts won’t get you the returns that most items on this list will. On the bright side, you have almost no risk at all and can rest in peace as your passive income in Canada grows slowly each year.

passive income canada

Banks like Tangerine offer up to 2.75% interest. Which is pretty good.

Alternatively, you could even invest your money in GICs. They give you a fixed amount of interest for a fixed amount of time on your cash. They’re also low risk, low reward. However, for people looking for a safe way of earning money, these options are great. Oaken Financial offers such GICs, so check them out! You could earn an annual interest of 2.90% on your investment.

#8 Invest In Dividend Income

Dividend income is one of the cleanest, easiest, and most solid ways to earn passive income in Canada.

Initial Time RequiredLow
Skills RequiredLow- Medium
Money RequiredMedium-High
Risk to Reward RatioMedium risk, medium rewards
Recommended ForCanadians who want a steady stream of income from companies they invest in rather than exponential growth of wealth.

There are plenty of dividend-paying companies in the country such as Capital Power Corporation and Canadian Imperial Bank of Commerce that pay a yearly dividend of more than 5%.

That means that if you’ve invested around $10,000 in these companies you’d be getting over $500 every year! It’s a great turnaround, especially considering how safe it is.

If you want to stick to the safe side, I’d recommend that you go for utility companies like the Capital Power Corporation because there’s almost no scenario in which they go under. It’s the kind of investment that you can stick to for decades.

Tip: Don’t spend away from the money you get from your dividends. Instead, reinvest that money into more dividends. It might be helpful to broaden your investment portfolio by investing in different companies.

#9 Invest In Real Estate Through REITs

You’ll hear this one a lot, and for good reason. It’s a solid option for passive income in Canada.

Initial Time RequiredLow-Medium
Skills RequiredMedium
Money RequiredMedium- High
Risk to Reward RatioLow risk, low reward
Recommended ForAnyone who wants to get into the property business but can’t afford to buy real estate by themselves.

Here’s the deal: buying property is something only the richest of people can do. For common folk, simply buying a single house is already more than a challenge.

However, what if I told you that buying a complete house isn’t the only way you can make your way into the property market?

passive income canada

REITs, or Real Estate Investment Trusts, are companies that purchase property and own at least 75% of the real estate that they invest in. The rent they make from these properties gets distributed into all the investors that have a stake in the business.

What this means is that all you have to do is give them your money. This money will be added to the large pool of capital formed through the many investments they get, which is then used to purchase real estate.

You won’t have to deal with tenants or purchasing property. Of course, that does mean that you’ll earn less than what you would if you purchased the real estate yourself, but REITs are a great option for people who can’t afford that.

#10 Invest In The Stock Market

Get your patience cap on if you want to go down this road. I mean it.

Initial Time RequiredMedium-High
Skills RequiredExtremely High (requires years of practice)
Money RequiredMedium- High
Risk to Reward RatioHigh risk, high reward
Recommended ForPeople who want to build an investment portfolio and lots of wealth over time.

A lot of people hear success stories about investing in stocks and they think they’ll end up being millionaires overnight by doing the same. That’s simply not how it works.

Do not – I repeat – do not treat the stock market like gambling. That’s what casinos are made for. The stock market requires patience and trust in yourself. Only buy stocks in a company that you trust, and then believe in your choice no matter how the market looks.

Don’t focus on the ups and downs of the market that you see every day or you’ll start to lose your head. There are plenty of great investors out there, like Warren Buffett, whose advice will do you some good.

If you do it right, there’s no better way to make money than to buy shares of companies that perform well in the future. An example would be tech companies like Tesla, which keeps going up no matter what happens to the market. Even the coronavirus market crash seems to have had little effect on it.

It’s still volatile and might result in net losses, but if you had invested $10,000 in it three years ago, you’d have grown that to $40,000 by now. Quadrupling your wealth in 3 years is nothing to scoff at.

#11 Rent Out Your Car

Depending on how much you use your car, it might be an unexplored goldmine for you. If you need it all day, then this method isn’t worth considering.

Initial Time RequiredLow
Skills RequiredLow
Money RequiredLow
Risk to Reward RatioLow risk, medium reward
Recommended ForAnyone with a car that’s not being used.

However, if your car does happen to sit around often, you’re in luck because there are companies out there that would love to rent your car.

Turo helps you earn an average of $706 a month for just listing your car. Other citizens simply rent your car when they need it, and Turo takes a quarter of your earnings for itself.

passive income canada

Rental companies like these are much better than finding customers yourself since it removes all the hard work – not to mention the liabilities. Your car is protected and covered with insurance.

The best part is that you can handle the pricing yourself or let Turo handle it. There’s minimum overhead and your car simply becomes a money-making machine.

#12 Use Credit Cards That Offer Cash Back

Using cashback credit cards is perhaps the simplest of passive income ideas in Canada.

Initial Time RequiredNone
Skills RequiredNone
Money RequiredLow
Risk to Reward RatioNo risk, low reward
Recommended ForAll Canadians who are interested in getting cash back from credit cards.

Here’s the deal – money that you save is practically money that you earned by doing nothing. Cashback credit cards are a great way to save money. There are plenty of them out there, and you can go over this complete list to select one that compliments your lifestyle.

With cashback cards, you’re given back a certain amount of money that you spend. Some cards simply give you 1% of your money back regardless of where you spend it.

Other cards, like the Meridian Visa Infinite, step up and give you increased cash back on certain products. This card in particular grants you a 4% cash back on gas and groceries. Imagine a permanent 4% discount on all the groceries and gas that you’ve ever gotten!

It’s highly valuable and basically takes no time at all. With most cashback cards, you’ll make more money than the annual fee of the card itself, putting you at a net profit, year after year.

There are plenty of cards for businesses that offer cash back on office supplies, etc. It’s worth checking out if you run a business as it’ll help cut down on costs.

#13 Use Cashback And Discount Apps

Cashback apps are free money and not using them is a huge blunder. If you aren’t using any right now, just skim over the ones we’re suggesting because they provide serious discounts on items that you’re likely to buy anyway.

Initial Time RequiredLow
Skills RequiredLow
Money RequiredNone
Risk to Reward RatioNo risk, low reward
Recommended ForCanadians who do grocery shopping.

Rakuten is one such app. It provides cash back and deals for over 750 retails chains in Canada. It’s got millions of users and is completely free. There aren’t any downsides to having this app on your phone! You can save up to 30% on your purchases by using this app.

passive income canada

Rakuten isn’t the only app either. There are plenty of discount or cashback apps just like it. Swagbucks, Checkout 51, More Rewards, and Flipp are some of the money apps out there just waiting to help you save money.

These apps aren’t exactly magic. They make money because they get a commission for the products that they help sell. Meanwhile, you get a good discount because the apps share part of that commission with you. So, the retail giants sell their items faster, the apps make money and you save some.

Everyone wins! Isn’t that great? Now, install one of these apps.

#14 Affiliate Marketing Is A Cash Machine

For entrepreneurs who play their cards right, affiliate marketing just keeps on giving. There’s any number of ways that you can do it in.

Initial Time RequiredMedium-High
Skills RequiredMedium
Money RequiredLow
Risk to Reward RatioLow risk, high reward
Recommended ForPeople with experience in writing and knowledge in a particular niche.

The first step you need to take is to select a niche. See, you’ll help sell products from that niche. You’ll do that by producing content revolving around said niche.

Tip: Keep in mind that you should only select a niche that you’re comfortable with. If you don’t know much about it, you’ll end up doing more research and work than it’s worth.

Let’s work with an example here, shall we? Let’s say that the niche you’ve chosen is personal computers. You should start writing content that informs and educates your audience about them. Make sure that your content provides value to your audience.

Anything Goes As Long As You’re Selling

You could either start a blog or start making videos – either one is great for affiliate marketing, although writing articles might be easier.

passive income canada

Some of your content might feature a product with a link that takes your readers or viewers to the product itself. Talk about this product (or list of products), and let your audience decide if they want it or not. When your audience buys that product after using your link, you’ll receive a commission.

It’s important to note that you should only provide authentic information and reviews. Don’t try to be a salesperson because your audience will simply switch to another blog or channel that’s unbiased. Here, at Yore Oyster, we also review products and services and give our honest reviews about them. If we don’t like a product, we let our audience know that thoroughly.

Be honest. Provide more insight and value than your competitors. And then watch your profits soar.

Tip: You can also pay people to make your content for you, which will drastically reduce the amount of time you need to spend on this business.

#15 Start Your Own E-Commerce Store

This one is tricky. It’s hard to get right because there are plenty of variables involved. A decade ago, opening an e-commerce store was free money, but these days, there’s tons of competition.

Initial Time RequiredHigh
Skills RequiredMedium
Money RequiredMedium- High
Risk to Reward RatioMedium risk, high reward
Recommended ForCanadians who have knowledge of online selling. Copywriting and links in the e-commerce business are great things to have.

However, it’s not all lost. You can still make a living, and then some, if your store takes off.

A friend of mine is trying to get his own e-store (that sells computer parts) started, but so far, he hasn’t had much luck. He’s making a clear mistake, and the problem is that he doesn’t have the drive to fix it. He isn’t investing in marketing the store whatsoever. Neither time nor money.

passive income canada

So, I’m telling you right now, if you decide on having an e-commerce store, you’ll have to work hard on it at the beginning. You’ll have to talk to people, spend time getting great prices, and then spend money & time spreading the word that you have a store that’s selling stuff people might need.

It takes creativity and hard work. I don’t really recommend this path for people who aren’t willing to stick with it. Yes, most items on this list require patience and determination, but an e-commerce store is on a whole different level. You’ll need a brand, connections, marketing strategy, and capital. After all of that, there isn’t a guarantee that it’ll all work out.

Tip: Don’t focus on profits during the start. Focus on getting repeat customers and establishing your business for the long run.

#16 Launch An App

Launching an app isn’t just restricted to Canada, you can do it anywhere (duh). But we decided to mention it anyway because it’s still a great source of income.

Initial Time RequiredHigh
Skills RequiredMedium- High
Money RequiredLow
Risk to Reward RatioCreating app: Low risk, medium to high reward
Paying for an app: High risk, medium to high reward
Recommended ForAnyone with the time and creativity to make an app. If you have a good idea, it could translate to the perfect passive income in Canada.

Apps are all about providing solutions and making our lives quicker and easier. Your best bet for making this work is to identify a problem that people face and then create an app to solve that issue.

Make Sure You Have A Great Idea For An App

Examples could be fitness apps that educate people and help them track their progress, time management apps that assist people throughout their day, etc. I’m not saying you need to think of a problem that doesn’t have a solution yet (do so, if you can). That’s a really difficult thing to do.

A better option is to go through the top apps of a certain niche and then identifying the problems with them. You can create a new app that solves these issues.

passive income canada

There are several ways to earn money with an app:

  • You can earn from the ad revenue that you’ll get when people download your app.
  • You can simply set a price for your app.
  • Or, you could keep the app free and have your customers pay to remove the advertisements on it.
  • Alternatively, you could keep your basic app free and have your customers pay for premium features

It’s all up to you. I’d recommend keeping a free app, though.

It’s highly likely that you don’t have the programming know-how to create a full-blown app. You could always pay someone to do it for you. Again, it depends on the time you have. One thing’s for sure, though. A relatively successful app will just keep bringing money for a pretty long time with minimal input.

#17 Sell Stock Photos

Selling stock photos isn’t something that’ll make you tons of money unless you invest all your time into it. Even then, it’s hard to get in the business. If you’re somewhat successful, you can expect to make around 15-50 cents in commissions on your images.

Initial Time RequiredLow-Medium
Skills RequiredMedium- High
Money RequiredLow-Medium
Risk to Reward RatioLow risk, medium reward
Recommended ForAnyone with skills and a passion for photography. If you own a DSLR, you should get into this.

That’s just a rough number, of course. These prices vary heavily depending on which website you have your pictures on and the quality of your images – not to mention the value your brand holds in the industry.

passive income canada

Don’t Force Yourself

My advice is that you shouldn’t purchase a new camera just to get into this market. It’s not really worth it to go through a course teaching you how photography works, spending $800 on a camera, only to make scraps on your investment. Selling stock photos also requires you to have knowledge in keywords so you know what sort of photos are in demand.

If you do want to go down this road, however, sites like iStock, Shutterstock, and Getty Images are where you want to start your journey.

If you have a passion for photography, then you should probably try selling your photos because you’re just making money from your hobby. It’s not an extra investment if you’re going to do it anyway.

#18 Make Money Through Company Referrals

This isn’t a business model that’ll help you earn a living. It is passive, though, which is why we’re covering it.

Initial Time RequiredLow
Skills RequiredLow
Money RequiredNone
Risk to Reward RatioNo risk, low reward
Recommended ForPretty much anyone who wants to make some extra money. You’ll need a bit of outreach (family and friends) who you can give recommendations to.

A lot of companies will pay you if you convince someone to do business with them. The amounts are meager at best – you could expect to make around $10-20 per referral, but a few referrals a year could really add up.

Imagine getting $100 in your hands right now. That’s something, right? Imagine something similar every year. All you have to do to make that happen is to share a few links on social media or maybe chat up a friend.

Companies like Rakuten and Checkout 51 are among the hundreds of companies that give you money for referrals.

#19 Start A Subcontract Service

Subcontractors have a great advantage. They’re like freelancers, kind of. And the demand for a subcontractor is pretty much endless if they know what they’re doing.

Initial Time RequiredHigh
Skills RequiredHigh
Money RequiredLow- Medium
Risk to Reward RatioLow risk, high reward
Recommended ForAnyone who is skilled in a certain marketable trade. If you have the drive, you can turn this into a profitable passive income in Canada.

Hiring a subcontractor can save companies a lot of money. You can make a lot of money by saving these companies their money. All you need to decide is what sort of service you want.

Now, this isn’t a passive income, to begin with. In fact, it’s a full-time job. However, there’s a clear difference between a subcontract service and a full-time job. That is, the growth of a good subcontract service is much higher than a full-time job.

Keep Growing Slowly Till It’s Passive For You

The best part? Once you start growing your business, you can start handling the managerial side of things. You needn’t go onto the battlefield yourself. This isn’t carved in stone, of course. I’m not saying that there’s a fixed period of time after which you can sit back and relax.

However, eventually, your workload will definitely become less and less, and that’s because subcontract services are so streamlined. In the end, ideally, you’ll have to check up on your business every once in a while and even let someone else take care of managing the service.

Is having a subcontract service the best way of making passive income in Canada? As I stated at the start of the article, it depends on who you are. You shouldn’t just get up and decide that you want to start a marketing brand if you have no experience in that field.

Choose something you’re comfortable with and have experience in. If you have neither of these, perhaps you could work with another way to earn passive income in Canada.

#20 Dropshipping Is A Low-Risk Endeavor

Ah, dropshipping.

Initial Time RequiredLow-Medium
Skills RequiredLow- Medium
Money RequiredLow-Medium
Risk to Reward RatioMedium risk, high reward
Recommended ForPeople who are interested in starting a robust e-commerce business but lack the money to do so.

Scary word, but you’re not dropping ships on anyone, trust me. It basically means that people order something from you, and then you order those items from your supplier. It’s completely different from having a store because you pretty much don’t have any inventory.

There’s almost no risk involved on your end. Here’s how it goes:

You ask your friends if they want to buy a particular pair of jeans for $10. 15 of them say yes, which means a revenue of $150. With these orders secure, you turn to your supplier on Alibaba.com and order 15 pairs of jeans for $3 each. That’s $45 in total, which means you just made a whopping profit of $105!

The prices actually do differ that much, and while we’re not counting things like delivery charges and taxes, the payout can still be substantial.

Dropshipping is one of the easiest ways of making a passive income in Canada for a good reason. There’s almost always a good amount of demand, and suppliers are always at the ready.

You’ll need a warehouse for larger orders, but when you start off, you can even keep your items in your living space! Trust me, it works. I’ve done it.

If you can figure out a product that has demand but not enough supply, you’ve struck gold. It’ll take marketing and research at first to get started, so it’s not entirely passive. However, once it gets going, you can pay people to take care of the repetitive side of the business and enjoy the profits.

#21 Use Advertisements To Generate Revenue

Ads are the most mainstream way of earning money online. When someone starts a blog, their first goal is to run Google Ads on their website. That’s how YouTube earns money too. Ads. They’re quick and easy.

Initial Time RequiredLow
Skills RequiredLow
Money RequiredNone
Risk to Reward RatioLow risk, high reward
Recommended ForAnyone with a website or channel. In most cases, ads are a great way to make passive income.

However, you do have the choice of what sort of ads you want on your page. If you run a YouTube channel, you won’t have much power over what sort of ads come across your channel.

If you have your own website or blog, though, it’s all under your control. Here are the two most common types of ads:

Display Ads

These ads require absolutely no input from either side; you or your readers. Display ads are no different from ads you might see in newspapers or billboards. They’re just there, consuming space and marketing a product or service.

You’ll get paid for the traffic that you get on your website. Of course, that gives you a direct incentive to maximize your traffic.

Pay-Per-Click Ads

As you may have already guessed, pay-per-click ads (or PPC for short), earn you money when people physically click on the adverts that you have on your website.

You’ll generally have ads that are related to the topic that you’re covering on your website. Whether your readers end up purchasing the product or service being sold has nothing to do with you. All you need to concern yourself with is if people are clicking. The clicks will earn you money.

Warning: Don’t repeatedly click these ads yourself or pay someone to do it for you. The company behind the ads will find out and you’ll get blacklisted. Ethical income will always pay off in the long run, so don’t try any shortcuts here. Just focus on growing your audience.

#22 Selling Leads Is Always Hot Business

And, it’s fairly easy too! If you have a niche blog or YouTube channel, you can already sell leads.

Initial Time RequiredMedium
Skills RequiredLow- Medium
Money RequiredLow
Risk to Reward RatioLow Risk, Medium Reward
Recommended ForAnyone with access to potential customers for any business.

Here’s how it works: Suppose you’re a business and you want to sell … say, insurance! Let’s imagine you’re selling life insurance. You want to look for customers. However, these customers are hard to find, and you’re not going to knock on every door in the city to ask people if they want your services, right? It’s too time-consuming and costly.

No, there’s a better way to get leads. You can buy them. You’ll just reach out to a YouTube channel or blog focusing on health (or any other topic that’s close to your brand), and ask them for their email list. You’d pay them in exchange, of course.

It’s An Easy Business Model

Now, reverse those roles. Imagine you’ve curated a list of hundreds of individuals who are interested in a certain topic. Businesses related to that topic will not only reach out to you for advertisements but will also spend a fortune on those leads you have.

That’s why it always pays to work a little extra and try to gain as many email contacts, and the like, as you possibly can. It’s a business model that takes less work than selling products yourself – although if you’re really running a channel, no one’s stopping you from doing that as well.

#23 Start A YouTube Channel

This probably doesn’t sound half as great a way to make passive income in Canada as it can be.

Initial Time RequiredHigh
Skills RequiredMedium
Money RequiredLow- Medium
Risk to Reward RatioLow risk, medium reward
Recommended ForCanadians who want to get into the video industry. If you have access to a video editing setup or money to pay others to do it, you should check this out.

But it definitely can be. You’ve probably seen plenty of YouTubers who spend all their time making videos. A lot of people also work on YouTube part-time and manage to grow huge followings.

We don’t want that, though. We want a business model that doesn’t require you to do much work at all. That’s absolutely possible.

All it needs is capital. You’ll need to spend money on scripts, animations, and voice actors.

The topic of your channel is completely up to you. You could make guides about a certain subject, or just provide various information in general.

Learn From The Best

Channels like The Infographics Show, WatchMojo, and Top 10s are huge examples of how you can have a channel without really investing much time in them. All you need is some clever people coming up with your ideas and scripts and other talented people delivering on them.

Earning through YouTube ads isn’t half as lucrative as it once was. However, you can still make tons of money through sponsors and selling leads to the right people.

It’s definitely worthwhile to have a presence in the video consumption industry since it’s been growing year-on-year for a long time now. It’s a great source of passive income in Canada, or anywhere else. It also has the potential to become a huge source of income, so don’t take it lightly.

#24 Get Rid Of That Pesky Debt

If you have debt, you should focus on reducing it before you do anything else.

Initial Time RequiredLow
Skills RequiredLow
Money RequiredLow
Risk to Reward RatioNo risk, medium reward
Recommended ForAnyone with debt. This will really help in the long run.

It’s a bit complicated, of course. It’s not every situation in which you should focus on your debt. If you’ve already begun with another source of income using additional loans, and it’s started to pay off, the debt is acceptable in that case.

Keep in mind that this is just an overview. Whether you reduce your debt or not really depends on you.

Lower Debt Is Almost Always Good

However, for most people, it’s definitely a great idea – especially if you’ve got nothing else going on. If you’re working a regular job, your primary focus should be reducing your debt rather than saving up.

One of the best moves here is to work with a monthly budget and reduce your spending until you’ve paid off your loans. It’ll take patience and time, but you’ll feel the difference once your student loans aren’t circling above your head all the time.

Related: If you’re having difficulty managing your debt, you should contact the Credit Counselling Society. They’ve got professional counseling that could help you avoid bankruptcy.

Tip: You can restructure your debts and get better APRs if you improve your credit score. Keeping track of your credit score and credit reports is imperative for that to happen. Some services that allow you to check your credit score for free are Credit Karma and Borrowell.

Related: If you’re looking to improve your credit score, the Home Trust Visa card might be helpful.

#25 Refinance Your Mortgage

The one fool-proof reason for refinancing your mortgage is if you can find a lower interest rate. 9/10 times, that’s your queue to get out and refinance your mortgage. Is this passive income in Canada? Well, sort of, because it helps you save more money in the long run.

Initial Time RequiredMedium
Skills RequiredNone
Money RequiredMedium- High
Risk to Reward RatioLow risk, medium reward
Recommended ForCanadians with a mortgage that could be improved.

There are plenty of reasons why homeowners choose to do this. Sometimes, they find a deal that helps them get rid of their loans faster, and at other times, it lets them consolidate their debt and lighten the load.

What refinancing basically means is that you pay off your loan to get another one, preferably on better terms. With a better interest rate, you have the option to pay less each month or keep paying the same amount each month and pay off your mortgage sooner.

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You’ll Save More In The Long Run

As I said before, money saved is money earned. If you have the chance to save money on your mortgage, let nothing hold you back. If you have to improve your credit score for that to happen, go for it.

We already mentioned how tools like Credit Karma and Borrowell are there to make this easy. The Credit Counselling Society is a great source of knowledge and guidance on how to get their finances in order. Ultimately, this could lead to you refinancing your mortgage, and it’s worth it.

The interest rates in Canada have never been lower at the time of writing this article, offering a golden opportunity for house owners to save money on mortgages.

#26 License Music Or Buy Royalties

Got a flair for music? You can easily earn passive income in Canada by producing it.

Initial Time RequiredMaking music: High
Purchasing rights: Low
Skills RequiredMaking music: High
Purchasing rights: None
Money RequiredMaking music: Medium
Purchasing rights: High
Risk to Reward Ratio Making music: Low risk, medium reward
Purchasing rights: High risk, medium reward
Recommended ForCanadians with a passion for music. If you can make your own music or have the money to purchase rights, go for it!

The great thing about so many passive income ideas is that you can actually combine them! It’s a great idea to grow an audience on YouTube from where you could link people to purchase your music on Spotify, or any other outlet you have.

The best combination here would be if you actually enjoyed making music in your spare time. That way, it isn’t considered work. You’re literally making money while doing something you’d do anyway. All the while making a name for yourself in the music industry.

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Marketing, management, all of that can be outsourced. All you need to do is focus on the music itself.

You Don’t Have To Make Music By Yourself

What if you don’t know how to make music, though? What then? If you’re still interested in the music industry, there’s still an option for you.

You can simply purchase royalties to music. Royalty Exchange is one of many sites where you can purchase the rights to a piece of music. Purchasing the rights to some music is like buying any property. You can then start earning money whenever someone downloads your music from then onwards.

Music is in great demand since video editors are always in need of a good tune to go with their work. That’s all it takes to make passive income in Canada. Just sit back and relax while you make money as your music gets downloaded. A good piece can make you a small fortune by itself.

#27 Start Selling With Amazon FBA

We all know Amazon. It’s one of the most influential companies out there. A complete and utter juggernaut that lets people sell items online.

Initial Time RequiredHigh
Skills RequiredMedium- High
Money RequiredMedium-High
Risk to Reward RatioHigh risk, high reward
Recommended ForAnyone with a flair for spotting low-cost items that can sell well in Canada.

Ever wondered if you wanted to get in on the whole thing? You could just as easily be one of the thousands of people importing goods from China or other countries into Canada and make tons in passive income.

In order to do that, you need to start working with Amazon FBA, which means Fulfillment By Amazon. Normally, it’d be a nightmare importing items into the country. You’d need a warehouse and tons of employees to take care of storage and delivery.

However, with Amazon FBA, you don’t need to worry about any of these things. Simply drop your items at their warehouses and they’ll handle the entire business for you. Your goods will be delivered to your customers via Amazon. They’ll even take care of customer services for you!

FBA Guidelines Can Be Really Rigid

There are a few downsides to FBA, one of them being the stiff guidelines they enforce. If your packaging is done wrong, if some labels aren’t correct, or if the slightest details are off, your items might get rejected, resulting in a lot of hassle.

You can also offset that by engaging FBA agents. Companies like B2C Sourcing will not only make sure your products are perfectly ready for FBA, but they’ll also help you with your shopping in China and save up on costs as well. You could also purchase your items on Alibaba.com.

One thing you should keep in mind is that while a lot of this might sound passive, it can get a little more difficult when implemented. You might need some time before your business machine is working without supervision. Even then, you might find yourself checking your inventory and sales every waking moment.

#28 Use Guaranteed Investment Certificates For Passive Investment Income In Canada

Guaranteed. Investment. Certificates. GICs.

They’re perhaps the safest and most boring way you could possibly generate passive investment income in Canada.

They’re offered by lots of banks and credit unions in Canada and we’re sure that you’ll find a GIC offering to your liking. Here’s the thing, though: you’re not about to get rich by investing in GICs. The most you’re going to make is 4% a year.

Initial Time RequiredLow
Skills RequiredLow
Money RequiredLow
Risk to Reward RatioLow risk, low reward
Recommended ForCanadians who want to have extremely safe passive income.

How do GICs work, you ask? Perhaps I should introduce you to what they are. Banks and credit unions issue loans all the time. And they need a whole lot of money to give out these loans. GICs are how they get this money.

You Can’t Normally Take Out The Money You’ve Invested In GICs

People like you, who want a stable place to invest your money, give the banks and unions your money. They tell you that you’ll make interest on your invested money. They loan out this money to others at a higher rate, all the while assuming the risk for loan defaults.

The downside of GICs is that you usually can’t withdraw your money after you’ve invested in it. You’ll have the option to invest for one to five years, and we recommend that you invest for just a year to see if you like the strategy. Generally, you’ll have to pay heavy fees if you withdraw before your GIC has matured.

Again, this isn’t a way to get rich overnight. GICs will take years to build up, and it’s generally for retirement. If you have an RRSP account, it works pretty well with GICs. Simply let your wealth build up over the years, and keep reinvesting. Once you’ve retired, your money, which has been passively building up, will be ready for you.

#29 Open Up A Laundromat

Laundromats are simple, and they earn money passively. Well, of course, they do! All your workers are little automated machines.

Initial Time RequiredMedium
Skills RequiredLow
Money RequiredHigh
Risk to Reward RatioMedium risk, high reward
Recommended ForCanadians who can take advantage of an area where there’s a lack of laundromats. If you have the capital to start off, go for it.

All you need to run a laundromat is an employee or two, and lots of capital. You might have to spend north of $200,000 just to get started. However, it gets much easier once you’ve set things up.

Laundromats are all about location. If you’re thinking of opening one, I’m sure you know this already. Lots of condos and apartments don’t have the space to wash clothes, so people who live there have no option whatsoever but to visit a laundromat.

That’s where you come in.

You’re doing people a huge favor by letting them wash their clothes and you’re making lots of money doing so. How much you make really depends on a lot of local factors, like how much competition you have in your area, where you’re located, etc.

If things go your way, you could expect to make around $15,000 to $100,000 a year, if not more.

Tip: Opening a snack shop or gaming booth within a laundromat can turn into extra income as your customers will have nothing to do as they’re waiting for their clothes to get washed.

#30 House Sitting. Money For Doing Literally Nothing

People often travel. Sometimes for elongated periods of time. This leaves their house susceptible to break-ins and theft.

Initial Time RequiredHigh
Skills RequiredLow
Money RequiredLow
Risk to Reward RatioNo risk, medium reward
Recommended ForPeople who can work remotely.

Of course, security systems help avoid such a scenario, but nothing says ‘secure’ like a person actually living in the house. That’s what many people would pay you for. Other than that, many families have pets that they can’t take along with them. It’s not like you can put your goldfish in your bag and take it to Hawaii.

House sitting could be the easiest way possible for you to make money. Just go to any website like House Sitters Canada and you’ll find plenty of openings that might fit you.

Make sure you arrive a day early to avoid any issues and have the house owners show you around. If possible, get to know the general neighborhood as well. You can do any number of things to make yourself comfortable, including getting to know local coffee places where you can hang out.

House Sitting Is Perfect For Remote Workers

An amazing thing that could work out for you is if you work remotely. Imagine that! You get to travel around and work at the same time. It’s the perfect passive income in Canada for all freelancers that appreciate some movement in their lives.

You could also continue to work on any other sources of passive income that you’re involved in. It’s pretty easy to work on a blog or run an online business when you’re alone in a house.

Just make sure to feed the dog and take care of it. Take it for daily walks and perhaps a spa too, every once in a while. Oh, and don’t turn the house into the local party-zone because you’ll lose your credibility pretty fast.

Remember, you’re not a guest; you’re there to take care of the house as the owners instruct.

#31 Outsource Your Freelance Work

If you’re a freelancer, you should try this at least once.

Initial Time RequiredHigh
Skills RequiredHigh
Money RequiredLow
Risk to Reward RatioMedium risk, medium reward
Recommended ForFreelancers who want to start giving their work to other freelancers and earn their cut.

About a year ago, I got too much freelance work. More than I could handle. However, I didn’t want to lose the business of my client.

The work itself wasn’t something that required my expertise as a writer anyway. It was simply writing descriptions of products on Shopify stores. Instead of turning my client away, I decided to do something different.

I searched for another freelancer with similar skills to my own and handed them the work. I also kept my own cut. It went on for a few months until I had time in my schedule to take back the work again.

Just like that, I was able to boost my portfolio, help another person earn money and boost their own portfolio, and kept my client happy.

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Dealing With Freelancers Can Be Tricky

It wasn’t all rainbows and sunshine, though. You need to understand that the freelancing industry is difficult to work with and people will bail on you. I’m speaking from my own experience and the experience of others.

That’s why it’s important that you go through a lot of people. At first, I lost quite a bit of money simply paying people for trials. You can ask for free trials, although I personally never felt comfortable asking someone for free work.

One business model that I’ve seen some freelancers adopt (I’ve never done this myself) is that they keep outsourcing more and more work and sort of becoming managers themselves and open their own unofficial agency. Boom, they started earning money just for existing.

If you’re ready to invest the time to find dependable freelancers, this could really pay off for you. It depends on the sort of person you are.

#32 Create Guides For A Niche

Guides are all the way up there in terms of traffic. As long as you have some first-hand experience with someone people are curious about, you’re guaranteed a lot of exposure.

Initial Time RequiredHigh
Skills RequiredHigh
Money RequiredLow
Risk to Reward RatioLow risk, medium to high reward
Recommended ForPeople who have experience in a niche that others want to know about. Preferably, not many people online have covered this niche.

I recommend that you only create a guide about something you’ve had experience in. However, if you want to research and create a guide, make sure you’ve got a good understanding of what you’re creating.

You could create a blog or start a YouTube channel. It doesn’t really matter where you get started – it really depends on your niche. You can make money from affiliate marketing since that’s a pretty great way to make money from guides. They’re pretty targetted.

Imagine you’ve got a guide about camping. You could add links to camping material on your page, and then watch the money roll in.

passive income canada

Aim For The Best

One thing you should know about guides, though. You should aim to create the best material on the internet. If there are a few other guides out there competing with yours, and they happen to be better than yours, you’re not going to gain much traction.

That’s why it helps to target a niche that hasn’t been well covered. A small niche that you hold authority over is better than a saturated niche in which you have a small portion of the traffic.

Focus On Providing As Much Value As Possible

Keep it as informative as possible. It’s your decision if you want to keep information behind a paywall, but you should at least provide some information for free to get people interested.

Don’t pick this source of passive income and then think of a topic. If you already have experience with something, like handling taking care of pests or dealing with a certain type of diet, you should inform people and make money in the process.

#33 Putting Advertisements On Your Car

This could earn you more than $100 a month for simply driving your car around.

Initial Time RequiredMedium
Skills RequiredNone
Money RequiredNone
Risk to Reward RatioLow risk, medium reward
Recommended ForAnyone who’s okay with having ads on their vehicle.

The thing about putting advertisements on your car is that there are more cars than advertisers. This means that you’ll have to be lucky in order to land a deal. However, if you do happen to get advertisements on your car, then, congratulations!

You just started earning $80-500 (or more), depending on your client. You’ll usually be given the option of what sort of advert you want in your car. You could have just the back window, or the doors, half the car, or the entire car. It really depends on what you’re comfortable with.

If you’re interested, just sign up with companies like Drivertise and wait for them to land you a client!

Just Remember To Be Careful

You’ll need to a be little careful while getting into this business, though. A lot of incidents with scammers have taken place and you don’t want to be the next one. If the company asks you to give them payment before they work with you, just politely decline. No legitimate company will ask you to pay them before they can work with you.

Also, another notorious scam is when the scammers will send you a cheque for your advertisement. It’ll be more than the expected amount and they’ll ask you to send a cheque back – this cheque would contain the extra amount they sent. Their cheque will bounce, and you’ll have given them free money from your account.

There are some options in which you can rent a car for free if you drive it a certain amount of hours a day. This car will already have advertisements on it – all you need to do is drive it. For free!

#34 Consult A Financial Advisor

Sounds silly, doesn’t it? What would a financial advisor have to do with passive income?

Initial Time RequiredMedium
Skills RequiredNone
Money RequiredMedium
Risk to Reward RatioLow risk, medium to high reward
Recommended ForEvery Canadian who can afford to consult a financial advisor. It will save more money than it costs.

Everything.

If you don’t know how to manage your wealth, you’re going to end up failing. It’s really important that you have the guidance it takes to keep your money growing safely.

Without this guidance, even millionaires find themselves in rags as they spend away without keeping track of their finances. As I’ve mentioned plenty of times in this article, money saved is money earned. And there’s no one better than a good financial advisor to show you how to save your money.

passive income canada

Your money will keep increasing passively if it’s under the close watch of an advisor. All the passive income in Canada, or even the world, won’t be enough if you can’t manage it properly.

You need a well-thought-out plan for your money. With a financial advisor or planner, you’ll be able to focus on the earning part and leave the rest to the professionals.

Peace Of Mind Is Important

Other than that, you won’t have to worry about pesky complications like taxes and regulations when you set out to do something.

A popular myth is that only the rich can have financial advisors, but the truth is that every average Joe like you or I could step up to one’s office and ask for a consultancy.

#35 Invest In Annuities

This isn’t for all the young, hungry entrepreneurs out there.

Initial Time RequiredLow
Skills RequiredLow
Money RequiredHigh
Risk to Reward RatioMedium risk, medium reward
Recommended ForCanadians who are about to retire and have over $50,000 to their name.

Annuities could be described as a do-it-yourself retirement plan. If you’re about to retire and have a couple of hundred thousand dollars to your name, you might want to buy annuities.

These annuities will then pay you a guaranteed income every month. Your monthly payment depends on your life expectancy. Sounds grim, I know. However, if you’re expected to live another 20 years, let’s say, then your money would be divided over these 20 years and interest would be applied.

Life Annuities

Here’s where things get interesting. There’s a type of annuity called life annuity. You get money every month until you pass away. Even if your life expectancy is another 10 years, and you live for another 30, you’re going to keep getting money every month regardless.

The downside of the life annuity is that if you pass away before your life expectancy, you’ll stop receiving your money. Yes, it won’t really matter to you, but your family won’t benefit from it either. Imagine investing $100,000, expecting to make $500 a month for the rest of your life, and then dying a year later. That’s a huge loss.

Fixed-Term Annuities

There’s another type of annuity to counter that. The fixed-term annuity. It keeps giving money each month until the planned amount of time is over, and even if you pass away before that time is up, your next of kin will still get the money. The downside here is that if you outlive the agreed timeline, you’ll stop getting the money.

If you apply for an annuity too early, you won’t get much money per month. The ideal time to invest in one is around 65-70 years of age. That’s when you can really reap some benefits out of this investment. It’s a great way for seniors to make passive income in Canada.

#36 Invest In Mutual Funds

Mutual funds are a really popular way to invest money all over the globe. Canada isn’t an exception.

Initial Time RequiredLow
Skills RequiredLow
Money RequiredLow- Medium
Risk to Reward RatioMedium risk, medium reward
Recommended ForPeople who want to invest in stocks but can’t afford to purchase shares and don’t have the experience or knowledge to invest by themselves.

Mutual funds are basically a simple way of investing in stocks, bonds, securities, etc.

Not everyone has the money to invest in these by themselves. Suppose you wanted to invest in Apple Inc. right now. I wouldn’t suggest that realistically, but let’s just assume that’s the case for the sake of the point I’m trying to make.

Each share of Apple Inc. costs over $300. That isn’t something viable for an individual who wants to invest $200 into their portfolio every month. Even if you saved up for shares of a specific company, you’d just be putting all your eggs into one basket, and any seasoned investor will tell you that’s financial suicide.

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There’s a crafty solution to all this, however. Mutual funds. What are they, you ask?

An Affordable Way Of Investing

In a short, basic explanation, mutual funds gather money from many investors and then invest it. You’ll have a share of that fund. Now, you can just invest $20 into a mutual fund and still own a bit of Apple Inc. The rest of the $280+ will come from other investors, and together, you’ll own a share of Apple Inc. Isn’t that marvelous?

The best part about mutual funds is that you don’t need to have any know-how of how investing works. Professional managers will deal with that. You just need to tell them your purpose for investing (do you want to become rich or save for retirement? Or any other reason), and then let them do their thing. Your portfolio will be diversified and relatively safe.

Your net worth will keep growing as the market grows. Just invest your money and forget about it. My suggestion is that you reinvest any dividend income you make from this. It’s a pretty neat passive investment income in Canada and around the globe.

#37 RRSP Accounts Will Save You Money On Taxes

You don’t have to pay taxes for any money that you store in an RRSP account, and that’ll save you thousands of dollars throughout your life. If that’s not pure passive investment income in Canada, then I don’t know what is.

Initial Time RequiredLow
Skills RequiredLow
Money RequiredMedium
Risk to Reward RatioLow risk, medium reward
Recommended ForCanadians who are about to reach the peak of their careers and want to save up on taxes.

There’s a limit to how much you can put into your RRSP account each year, and the number gets updated annually. Last year, it was either 18% of your income, or $26,500 – whichever number is smaller.

The money in this account won’t be taxed. And it gets better. Your income will be taxed after you’ve put money into your RRSP. That makes it highly valuable, of course.

This doesn’t mean that you’ll escape taxes forever. You still need to pay taxes when you retire. You can only access your RRSP when you turn 71, and you’ll be taxed based on your income at that point in time.

passive income canada

Here’s the advantage of an RRSP account, then: you’re probably making way more in income than you’ll be at the age of 71. That means that your income tax will be lower as well.

Is Your Career At An All-Time High?

If you feel like your income is about to hit its peak in the upcoming years, you should start investing in your RRSP right away. This is when your income tax will be at its peak, and thus, you’d do well to avoid it.

Your RRSP can comprise of anything, including GICs, mutual funds, savings accounts, and any other means of parking your money. The fact that this money won’t be taxed means that it’s allowed to grow as much as it can without any fears.

Spousal RRSPs Are Great!

People will often tell you to run away from marriage, but I’m telling you; if you want a better retirement account, you’d better tie the knot. Don’t take this seriously. You should only marry for love. Don’t settle.

With that being said, you can contribute to a spouse’s RRSP account. Suppose your income is higher than theirs. Your taxes will be minimized when you’re withdrawing your funds.

Furthermore, if your spouse is younger than you, you can keep adding to their account from your own income even after your turn 71. Doing so will make your retirement account fatter than a turkey on Thanksgiving.

Can this be considered passive income in Canada? We’d say yes.

#38 Start Selling On eBay

eBay is definitely easier than selling on Amazon or your own online store. It has fewer regulations and doesn’t require as much capital.

Initial Time RequiredHigh
Skills RequiredMedium- High
Money RequiredLow-Medium
Risk to Reward RatioMedium risk, medium reward
Recommended ForPeople who want some beginner’s experience with online selling and want to make profits doing so.

This platform has been around since forever and experience on it will help you become a better seller. For most people, it’s certainly not a way to earn a living. It’s mostly for selling items that you don’t need.

However, it can also be a great learning experience for future sellers. You’ll learn how to market your items and engage buyers, all the while making money.

passive income canada

eBay has a bidding system if you weren’t already aware, and the item goes to the highest bidder.

Tip: Make sure you never bid on your own items to make them perform better. You’ll get caught and it’ll result in a loss for you.

eBay Is Great For First-Hand Experience

You’ll get your hands into SEO and writing engaging descriptions that maximize your sales. It’s a good way to earn passive income in Canada. Of course, it requires some input from you, but for the most part, you just have to put your items for sale and then let the platform run its magic.

You could buy cheap items from anywhere, including eBay itself, and then sell them at a higher price. There are plenty of tools out there to help you set optimal prices. Just take some good pictures, write a neat description, and then relax.

#39 Design WordPress Themes

Do you have experience in designing webpages? You could start earning plenty of passive income in Canada if you make your own WordPress themes. WordPress has never had more business and it keeps going higher with each passing year.

Initial Time RequiredHigh
Skills RequiredMedium
Money RequiredLow
Risk to Reward RatioLow risk, medium reward
Recommended ForDevelopers who have some free time and necessary skills to create WordPress themes.

There are plenty of platforms where you can sell your themes once you’re done with one. One such platform is Theme Forest, where thousands of buyers come to select the best theme for their website.

It takes time and dedication to create a good theme, of course. However, if you make one that ends up being popular, you’re going to make passive income like there’s no tomorrow. Themes can sell for any price you want them to. It really depends on what you, the developer, think it’s worth.

You could also look at the market and see how much similar themes are going for. Once you’ve selected a price, you have to do pretty much nothing other than handling bugs and issues.

You Might Need Maintenance From Time To Time

If you want, you can keep updating the theme every now and then to keep things fresh. As long as you listen to complaints and act accordingly, your themes will definitely keep selling. All you need is a good perspective and an eye for beauty.

The best part is that you don’t need any money to start off with. You can even learn how to design webpages for free. There are lots of tutorials on the internet that’ll teach you how to become a pro.

#40 Participate In Scientific Research

Clinical trials, sleep studies … they’re all necessary for science and technology. They help scientists understand better how the human body works, and if you match what they’re looking for, you can earn some bucks while you help out humanity.

Initial Time RequiredMedium
Skills RequiredLow
Money RequiredNone
Risk to Reward RatioMedium risk (to health), high reward
Recommended ForPeople who are comfortable with clinical studies and are in good health.

You could earn over a thousand dollars by participating in a study by BigPharma Services.

Some studies will simply pay you for observing your sleep patterns. That’s taking ‘earning while you sleep’ on a whole new level. Earning money this way isn’t for everyone, but if you feel comfortable, it’s a great source of money.

passive income canada

It’s also a great incentive to keep yourself healthy because these studies usually consider people who’re in good shape.

There are lots of studies taking place in Canada, which makes them a great way to earn passive income in Canada.

In Summary

Which method you select to earn passively depends on you. One thing’s for sure, though. If you ever want to step out of your 9-5 job, you’re either going to have to invest in passive income or wait for retirement.

It takes patience to earn passively, but later on, it’s truly worth it. Unlike active jobs, passive jobs get easier and more rewarding as you stick with them over the years. If you ask us, it’s definitely worth it to have a source of passive income in Canada.

Most people want to get wealthy. It’s just natural. So, we highly suggest you get started with one of these activities or even come up with something creative on your own!

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