Create Easy Passive Income With Zero Dollars in Start-Up Costs

Creating passive income for zero costs can be easy enough, but investing it can create an enormous amount of cash year after year.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. Amy’s work can be found regularly on the Financial Post and MoneyWise Canada. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog Finley, and travel. Follow Amy on LinkedIn.

Published September 15, 2023 11:00 am EDT

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Creating passive-income streams without any start-up costs can be an enticing prospect for anyone looking to secure their financial future. Imagine receiving money regularly, even in retirement, without having to invest substantial amounts upfront.

In this article, we will explore a simple and effective method of generating passive income by uploading photos to stock photo websites. Additionally, we’ll discuss where to invest your passive income, particularly in a Tax-Free Savings Account (TFSA), and how to leverage it to invest in dividend stocks like TELUS (TSX:T). By the end, you’ll see how this strategy can help you build a long-term income stream.

Creating a passive-income stream: Stock photo websites

One of the most accessible ways to create a passive-income stream with zero start-up costs is by uploading your photos to stock photo websites. These platforms allow photographers to earn royalties each time their photos are downloaded or purchased by users. Some popular stock photo websites include Shutterstock, Adobe Stock, and Getty Images.

The earning potential in this field varies, but it can be surprisingly lucrative. For example, Shutterstock offers a tiered pricing structure for photographers. You can earn anywhere from $0.25 to $120 per image download, depending on the customer’s subscription and the image’s license type. If you consistently upload high-quality images and build a substantial portfolio, you could earn a significant passive income over time.

Suppose you upload a diverse collection of images and gradually expand your portfolio to include hundreds or even thousands of photos. In that case, you can generate a steady stream of income that requires minimal ongoing effort. Keep in mind that the more unique and in-demand your images are, the higher your potential earnings.

Where to invest it: Tax-Free Savings Account (TFSA)

Once you start earning passive income from stock photo websites, it’s crucial to manage your earnings wisely. One highly recommended option is to invest your income in a TFSA. A TFSA is an excellent choice, because it allows your investments to grow tax-free, and you can withdraw your earnings without incurring any tax liability.

To invest in a TFSA, you’ll need to open an account with a financial institution or brokerage that offers this type of account. Most major banks and investment firms provide TFSA options. After creating your TFSA, you can start contributing your passive-income earnings into the account, staying within the contribution limits.

Invest in a dividend stock

Once you’ve accumulated a substantial amount in your TFSA, consider investing in dividend stocks like TELUS stock. TELUS stock is a Canadian telecommunications company that has been a market leader for several decades. Over the past decade, TELUS has shown remarkable growth of 35%. This has created a compound annual growth rate (CAGR) of 3.07% as of writing.

TELUS’s strong performance makes it an attractive choice for dividend investors. As of the last dividend declaration, TELUS offers an annual dividend of $1.45 per share. Investing in Dividend Aristocrats like TELUS stock can provide a reliable stream of passive income, as these companies have a history of consistently increasing their dividend payments.

Bottom line

Let’s do some math to illustrate the potential of this strategy. Suppose you generate $5,000 per year from your stock photos. If you were to invest your earnings in TELUS stock, which is currently priced at $23 per share, here is what you could achieve.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY
T	$23	217	$1.45	$314.65	quarterly

In summary, creating passive income streams without any initial investment is both easy and beneficial. By uploading photos to stock photo websites and wisely investing your earnings in a TFSA, you can generate a reliable passive income source. Investing in dividend stocks like TELUS stock can further enhance your financial stability, offering a promising path to long-term income, even in retirement. So, seize the opportunity to start building your passive income today with zero start-up costs and reap the rewards in the future.