How To Make Passive Income In Canada | 10 Passive Income Ideas 2021

Do you want to earn money while you sleep while you're out getting stuff done while you're out on the lake or while you're out of town for the weekend in today's video i share with you 10

passive ways to earn income so if you want to get your time back and live a life of freedom make sure you watch this till the end [Music] what is passive income it's generating income that requires little to no work to keep earning and to maintain you may need to put in a lot of time and effort to build a passive income source at the beginning but once it's complete you can sit back and allow your passive income source to earn you money while you sleep you may also use money to create a passive income source but once again that money will require time to make so to create a passive income source you will need to front load your work or invest your money what is active income it's income received from performing a service that you must be present for in order to earn income for example a restaurant worker construction worker mechanic engineer doctors and lawyers so pretty much any job or career that you earn an hourly wage salary or commissions the problem with active income is that your earning potential is limited what's it limited by it's limited by time so to earn more money you need to work more and there's only 24 hours in a day and you can only work so many hours per day what's more valuable than money time warren buffett once said if you don't find a way to make money while you sleep you will work until you die with that being said let's jump into the list of the 10 passive income sources number one dividend income this is one of the easiest way to earn passive income there is no front loading any work your dividend income will depend on how much money you invest dividend income in short is income received from a company's profits for example if you buy a share of the company bell you own a piece of that company and as a shareholder you are entitled to a portion of the profits as a dividend not all companies pay a dividend and some companies pay more than others to start earning dividend income all you need to do is open an online brokerage account and research which dividend stocks you want to invest in buy your stocks and that's it collect your dividend payouts which are sometimes monthly or quarterly so how much dividend income can you earn well let's say you have an average dividend yield of four percent which is an average safe yield the higher the yield usually the more risk involved if you had three hundred thousand dollars you could earn twelve thousand dollars a year in dividends which will give you a thousand dollars per month could you live off a thousand dollars per month probably not but if you build your dividend portfolio big enough essentially you could live off the dividends this is a popular choice for the people in the fire movement they build up their dividend portfolio at the same time reducing expenses so they can retire early number two phone farming now what in the heck is phone farming it's the process of using mobile devices to download apps that earn income you wouldn't use your everyday mobile device it's best to use old android smartphones so if you have any old android phones laying around you're already ahead of the game then i would recommend asking friends and family if they have any old android phones they're willing to part with if not check your local classified ads to see if you can find phones for under fifty dollars the more expensive the phone the longer it will take to make your money back there's two apps in canada that i know that pays and that i currently use cash magnet and honey gain with cash magnet you can run up to four devices and earn up to fifty dollars per month with honeygain you can run two devices and earn up to twenty dollars a month depending on your location and internet speed so with six devices that's seventy dollars per month and this income is passive just keep the device plugged in and run the app 24 7 and that's it if you're concerned about energy consumption it will cost you about two dollars and fifty cents for the year per device if you ran it the whole time phone farming is an up and down game some phone farmers use up to a hundred devices with multiple routers to earn up to a thousand dollars per month even if you only earn seventy dollars per month do you know how many dividend stocks you would need to hold in order to make seventy dollars per month twenty one thousand dollars worth so even if you paid fifty dollars per phone and you had six phones it would only cost you three hundred dollars to earn seventy dollars a month and phone farming is just as passive as dividend stocks number three high yield savings accounts with a high yield savings account you can make passive income in the most risk-free way and the most easiest way all you need to do is hold money in a savings account at the minimum you should be at least doing this with your money i would use a savings account for two things your emergency fund and any short-term financial goals like saving up for a big purchase within a few years your emergency fund fully funded should be at least three to six months of living expenses and a big common purchase goal is saving for a down payment for a house if you're four plus years away from buying a house then maybe you shouldn't consider investing to grow your money faster but if you're within one to three years of buying a house a savings account will keep your down payment free from risks a savings account will only keep up with inflation which is around 2 a year before the pandemic savings account rates were much higher currently you can open a high interest savings account with eq bank with a two percent annual rate or open a tfsa with mode of financial with a 2.05 rate so how much passive income can you earn from this if you went for eq bank and had emergency fund of ten thousand dollars you would earn on average 16 and 82 cents per month and let's say you had 50 000 for a down payment on a house sitting in an eq bank account you would earn on average 84 and 10 cents per month so you can earn just over a hundred dollars in passive income per month just by keeping your emergency fund and any short-term saving goals in a high-yield savings account number four capital gains from investing you can earn passive income simply by buying shares of a company and selling them later down the road when the value of the share increases the profit you earn when selling your shares will be capital gain income there's two passive ways of doing this open an online brokerage account and pick your stocks to invest in or open a robo advisor account and let them do all the work when investing on your own you have the potential for the highest returns but this requires more work and has more risks with a robo advisor the most work involved is answering a few questions to determine your risk tolerance so they can pick an appropriate portfolio for you wealth simple invest does this the best with only a 0.5 percent management fee wealth simple will do everything for you make investing completely passive how much can you earn currently my wealth simple portfolio has an annual return of seven point two percent and that's considering the market crash we had earlier this year that we are still recovering from so if you had twenty thousand dollars in a portfolio and it grew seven percent annually you would earn around 116 dollars per month if you were investing in individual stocks your potential returns are unlimited you could see a seven percent return in just one day or two three times your money in a few months but this is a double-edged sword so make sure you do your own research before you do any investing number five cash back rewards imagine needing to buy groceries for your family gas for your car pay for your internet and power bills buying all the essentials you need to survive plus a few things that you don't need but would really love to have whether you use credit cards or not you will buy these things anyway so why not earn cash back doing so to earn cash back there's no extra work involved so it's passive and technically it's cash back and not income so any cash back is tax free there's two main strategies for earning rewards the all-in-one card usually with an annual fee but with a higher reward rate or using multiple cards with no annual fee with a specialized reward rate let's say on average you earn two percent cash back with multiple cards with no annual fee then let's say you spend 2500 a month on cash back eligible goods and services which is low compared to the average canadian but we frugal you would earn 50 a month in cash back aka passive income you're going to spend the money anyway so why not earn passive income doing so number six rental income you could earn passive income from renting out apartments or houses that you own this means you become a landlord there is some work involved when becoming a landlord but you could hire a property manager to make rental income pretty passive when renting out your property the renter pays for your mortgage you're building equity with someone else's money on top of that your property may appreciate over time depending on many factors the value of your property may increase building your equity once again but you want monthly income so how do you achieve that through cash flow cash flow is the difference between rent collected and all operating expenses operating costs include vacancies repairs management fees delinquencies etc it's easier to achieve greater cash flow when dealing with multi-family homes like duplexes and triplexes it's very possible to own enough properties with enough cash flow to earn a full-time income and retire and if you hire a property manager then this could be a passive income source but if you don't have enough money to start buying properties you can also earn passive income by renting out a room or investing in reits what is a reit real estate investment trusts reits are traded like a normal stock on a stock exchange you could earn passive income with reits by earning dividends and capital appreciation the rest of the passive income sources on this list will involve more work at first and more time than money but before we get into that if you like this video can i get you to hit the like button and share this with a friend number seven affiliate marketing affiliate marketing is when you promote other companies products and earn a commission through a sale for example sign up for wealth simple invest using my link found in the video description below and deposit at least five hundred dollars to earn yourself a fifty dollar signup bonus using my link won't cost you anything extra and actually if you don't use it you won't get to sign a bonus neither will i how is this passive well it can be passive at first you need to build an audience on social media a website a blog a podcast or a youtube channel this cannot be done overnight well it has been but the chances are very low it might take months two years or you may not ever be successful but once you do have a decent audience you can achieve a full-time income through affiliate marketing this can be considered passive because it's work you did in the past can still pay you currently and in the future like if you had a blog and made a post last year any affiliate links attached to that post has the potential to pay you now but if you stop making content for your blog eventually your blog will die out and you will lose your audience so to keep past posts earning income you will need to create fresh content to keep growing your audience and keep growing your affiliate marketing income income earned through affiliate marketing will depend on many factors like which niche are you in the platform you use the size of your audience and the number of affiliate partners this passive income source doesn't require a lot of money but there's lots of work involved getting it off the ground and maintaining it number eight adsense google adsense is a free service offered by google for content creators if you have a blog website youtube channel or other online platform you can monetize your platform by placing ads in it companies will pay google to advertise their business then google will pay you to place ads with your content for example i receive a small percentage of earnings for having ads placed in my videos which helps me feed my cat so if you want to support my family don't skip the ads am i allowed to say that how much can you earn from google adsense once again it depends on your niche some of the highest paying niches include fitness makeup stock market real estate and personal finance also the platform you use a blog a website or a youtube channel and the size of your audience and how much traffic you can generate plus many many more factors so it's hard to say how much money you can earn from adsense but let's say it ranges from one dollar to a million dollars per month this income is considered passive because you're getting paid from content that you made months or years ago if you decided that you wanted to go on a trip for a full month and didn't produce any new content you would still get paid and earnings probably wouldn't get affected now if you stop producing content for years eventually your content will be out of date and your earnings will be affected and you can make a full-time living off adsense but in order to keep the momentum going you will need to keep producing content and like i already said building a big audience will take a lot of work and time but it can be done with very little money number nine royalty income royalty income is income received from allowing someone to use your work or property for example if you create a song you get paid when someone downloads your song streams your song from a paid streaming service or even when they use your song in a movie tv show or other content other ways you can make royalty income include selling stock photos writing books and ebooks and making videos in order for someone to use your property they must buy the rights off for you how much can you make from royalty income you can make a few extra bucks to making a full-time living you make 70 million dollars if you're the person that created the happy birthday song nevertheless it's passive income and your royalties could last your whole life and even up to 70 years after you die number 10 create a product or start a business starting a business can be far from passive anyone who started a business can tell you it takes a lot of work you need to put all the work in to maximize your profits but once your business is stable and profitable you can hire others to take the work load off you and you can go as far as hiring someone to manage your business for you that's when your business can start to be passive have your business ran by other people while you collect a check and do whatever you like this can be the riskiest way to earn income not only are you investing money but you're investing time as well but starting a business can have the biggest payoff you can even earn passive income from creating a digital product products like an online course software apps and games once the product is created it can be sold over and over again and no further work is required so the income from your product is passive now why is passive income so important passive income allows you to earn money without taking up all of your time society wants you to work your whole life and retire broke at the ripe old age of 65 or you could use passive income to retire at the age of 30. to reach financial freedom sooner you will need to combine passive income with your active income with being frugal so if you want to live a life of freedom the freedom to do whatever you want the freedom to go wherever you want whenever you want then start building your passive income sources if financial freedom sounds like something you're interested then make sure you subscribe and hit the bell icon to get notified when a new video comes out if you already make passive income tell us what it is in the comment section below thanks for watching until next time keep making money moves peace