Finding a great side hustle can be an excellent way to create income with little effort. I say little effort, because it’s not zero effort here. That is, not until you start investing it.
That’s why today I’m going to help passive income seekers use one small side hustle and turn it into large amounts of passive income each and every month. So let’s get right into it.
Try UpWork
There are many sites out there offering side jobs to Canadians, but today I’m going to focus on well-known platform UpWork. This site connects freelancers with clients who need help in a variety of fields. It might be writing a blog post, designing a website, marketing, or even translation or data entry!
The average job can start out at around $50, depending of course how much time, effort, and experience you have for the UpWork position. If that’s the case, Canadians could do one small project at $50 four nights a week. That would bring in an additional $800 per month in income!
But there’s more. You’ll be able to collect reviews and see your income rise as your profile becomes more well known. Canadians can then bid on projects and create competitive pricing. Make sure to create a detailed profile that includes your work as well to attract more clients, and you’ll be sure to be making more than $50 per project in no time.
Invest for even more
Once you’ve got this side hustle going, the next step is to start creating passive income. To do this, you’ll want to have an investment account such as a Tax-Free Savings Account (TFSA), and choose a strong stock that offers monthly dividends.
Each month, you’re going to put that $800 (or whatever the amount comes to) straight into your investments. It’s therefore not coming out of your day job, and it’s not taking away from debt and bill payments. You’re merely using that extra cash to create more extra cash.
As for what stock to invest in, here we’ll look at what could happen by investing in Sienna Senior Living (TSX:SIA).
Turning passive income into profits
Right now, Sienna stock offers a dividend yield to investors of 7.95%, which comes to $0.94 per share on an annual basis. The stock is a strong choice not just for right now based on the dividend, but the future growth opportunity of the aging Canadian population.
Yet senior homes and long-term care facilities continue to struggle since the pandemic. High interest rates and inflation also hampered their profits, but now there are signs that these stocks are due for a recovery period. So with shares of Sienna stock down 13% in the last year, it’s still a great time to buy. Especially as it has recovered up to 7% in the last three months.
With that high dividend yield, let’s look at what $800 per month could get investors today, and what that could look like in five years even if shares don’t move a cent upwards, and dividends remain the same. By five years from now, you’ll have amassed $48,000 in savings to invest!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| SIA | $11.50 | 4,174 | $0.94 | $3,923.56 | monthly |
As you can see, in five years, after putting all that cash aside and investing it over time, you’ll eventually reach annual dividends of $3,923.56! That comes to monthly income of $326.96. Add that to your $800, and you’re looking at $1,126.96 in monthly income by working this small side hustle.
