1 Not-So-Secret Way to Make Even More Money This Year

This is one of the most effective ways of saving for investments and could leave Canadians feeling as if they got a raise!

| More on:
A plant grows from coins.

Source: Getty Images

The secret I’m going to tell you about is not a side hustle. I’m not even recommending you downsize or sell things, or anything else that would cause you more stress. We don’t need any of that these days.

Instead, we’re going to look at a not-so-secret way of creating even more cash. Anyone can do it, no matter the income. And that can be turned into even more cash by investing once you’ve put enough aside.

Net-zero budgeting

During a downturn, recession, economic volatility, or whatever you want to call it, Canadians already know they need to cut back. I am certain you’ve done this already. But whether it’s skipping that coffee on the way to work or even biking instead of taking the car, eventually, it’s not going to cut it anymore.

That’s when it’s time to consider the net-zero budgeting method. This budgeting method is when Canadians can use the strategy to ensure their expenses aren’t exceeding their income. The result is a balance of zero at the end of each month. And unlike traditional budgeting, which often sets limits on spending in each category, this budget focuses on giving each dollar a specific purpose.

First, Canadians will need to calculate their net income, including salaries, bonuses, and investment returns. Then, identify all expenses, from fixed costs like rent to variable ones like gas and dining out. Then, you’ll assign every single dollar of income to a specific category, such as necessities, a savings goal, and debt repayment.

You’ll save more

I get it. By assigning every dollar, it sounds like you’re spending every dollar. But that’s not the case. Instead, you’ll be efficiently allocating all of your resources to a different purpose. It will also help if your focus is on debt repayment because you won’t be tempted to spend on non-essentials. If your dollar isn’t assigned to it, you can’t spend it.

Remember that you’ll also be allocating spending to your savings and investments! So, each and every month, you’ll be putting aside more and more. And as you get used to the budget and see your savings increase, that can help motivate you to create even more money!

Over time, this method of saving can help you achieve your goals incredibly quickly. But to achieve your goals even faster, the best thing you can do is, of course, start investing.

Where to invest

If you don’t have a lot of cash to invest in the beginning, that’s fine! But as you start saving more, you can start investing more. So, you’ll want to invest in a company that will provide you with as much growth and cash as possible.

In this case, consider a real estate investment trust (REIT) such as Granite REIT (TSX:GRT.UN). This industrial REIT continues to be in high demand, as we need industrial properties to store, ship, and assemble products. 

Granite stock has seen stable occupancy and rent repayments because of this, allowing shares to climb higher and keeping its dividend stable. Shares are up 14% since the October market bottom, and investors can gain a 4.46% dividend yield as well!

So, there you have it. Couple a strong dividend stock with stable growth and a net-zero budget, and you’ll be far richer this year — all from the same amount you were making at the start of 2024.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Payday ringed on a calendar
Dividend Stocks

TFSA Monthly Money: How to Generate Consistent Tax-Free Passive Income

Adding these two attractive Canadian dividend stocks to your TFSA now could help you earn reliable monthly passive income for…

Read more »

analyze data
Dividend Stocks

3 Magnificent TSX Dividend Stocks to Buy and Hold Forever

Do you want to hold some quality dividend stocks for the decades ahead? Here are three stocks worth holding for…

Read more »

Dividend Stocks

How Much Will Canadian Utilities Pay in Dividends This Year?

Investors can stabilize their long-term stock portfolio returns by accumulating quality utility stocks on meaningful dips.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

The 3 Top Canadian REITs to Buy in May 2024

These REITs in strong sectors are well-positioned to deliver passive income through regular dividend payments.

Read more »

Family relationship with bond and care
Dividend Stocks

Dividend Investors Can Earn $500 Every Month or More With the Right Stock Offering a 6% Yield

Two high-yield monthly income stocks are attractive options for dividend investors, including retirees.

Read more »

Question marks in a pile
Dividend Stocks

Down 14%: Is This Toymaker Stock a Good Buy in MAY 2024?

The right time to buy a discounted stock can be difficult to pin down, especially when there are no clear…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Dividend Stocks That Could Create $2,484.40 in Passive Income in 2024

These two passive-income stocks offer not just dividends but returns as well! And should continue to do so for at…

Read more »

lab worker inspects test tubes
Dividend Stocks

Time to Pounce: 2 Ultra-High-Yield S&P 500 Dividend Stocks That Are Screaming Buys Right Now

More than a dozen S&P 500 components sport "ultra-high yields." Two of these time-tested titans are begging to be bought…

Read more »