If you’re looking to create some passive income for the holidays or at least to pay off holiday spending, I don’t blame you. Sure, the market and economies are showing signs of improvement. However, unless you’ve come into a large amount of cash, it’s very likely you’re one of millions of Canadians who are still struggling.
There are certainly ways of creating passive income quickly. Moreover, once you discover a method that works for you, you can turn that passive income into massive cash — cash that can be invested again and again to create the most amount of passive income possible.
So, let’s get started.
An option right for you
The key to passive-income streams is that you can do them no matter what else you’re doing. Whether it’s driving, sleeping, or travelling, you’ll still be making passive income. Because of this, it’s important to be clear that passive income is not a side hustle.
Instead, look for things that you can do all the time, no matter your age or how busy you are. For instance, consider renting out your parking spot at a monthly price that’s lower than nearby levels. You could “carvertise,” putting advertisements on your car while you simply drive around. Or you could rent out storage space in your attic, garage, or apartment storage unit.
These are all methods that could bring in hundreds in passive income each and every month. Do all of them, and after the initial setup, you won’t have to worry about a thing — especially as most of these options also can be used through applications such as Rover or SpotHero, which will do the heavy lifting.
Start making money!
You can start making passive income pretty much right away with these methods. But once you do, don’t spend it all at once. If you have debts that need to be paid, pay them! Interest is going to keep hurting until you pay those down.
However, if you’re able, put the money aside. Treat that money as extra income and not part of your budget. After all, those contracts could come to an end suddenly, so you don’t want to start depending on that cash.
Instead, put that cash right into a Tax-Free Savings Account (TFSA). That way, you can start creating an emergency fund, working towards your long-term goals — even retirement! However, if you need that cash suddenly, you can take it out cash free. Meanwhile, you can make even more passive income by investing.
The key to investing and creating huge passive income is by investing with long-term goals in mind. You can still do this without hardly lifting a finger. Simply start by creating automated contributions to the right companies, exchange-traded funds, and Guaranteed Investment Certificates.
For example, let’s say you put cash towards Royal Bank of Canada (TSX:RY). Royal Bank stock has shown an increase in profits over the last year as of its latest earnings report. So, it’s a great time to get into the bank stock, as it continues to recover toward 52-week highs.
Meanwhile, let’s say you make $300 per passive income stream each month doing parking rental, storage rental, and carvertising. That’s a total of $900 each month, which works out to $10,800 annually, to invest. Should RBC stock see shares return to highs, here is what that could look like.
|NUMBER OF SHARES
|RY – now
|RY – highs
You’ve now created $1,520 in returns and $485.76 in dividend income. That’s passive income totalling $2,005.76! All with zero start-up costs. And that will certainly help pay next year’s holiday expenses.