Canadians have been seeking out many different ways to make some extra cash over the last few years. Yet most of these haven’t been passive income streams, and instead are side hustles. So today, we’re going to look at exactly what makes them different. And from there, how to turn even $0 into tons in savings in 2024.
Passive versus active
The main difference between a side hustle and passive income stream is that one is active, and one is passive. A passive income stream is one that you pretty much don’t have to touch once you get it going. But a side hustle is very much active.
A side hustle, whether it’s driving for a ride-share company, drop shipping, even content creation, it’s all active. You need to market yourself, respond to clients, and do all this while still trying to hold down a job!
And that’s pretty much what a side hustle becomes: a job. If you call it what it really is, it’s just a part-time job, and it’s one that may even put your full-time job at risk. So unless you’re trying to start up a new business and move out of your current one, I wouldn’t recommend a side hustle.
Instead, be really passive
So instead of trying to come up with an “easy” side hustle, it’s far easier to come up with real passive income streams. Of course the most obvious one is investing, but what if you don’t have any money to invest in the first place?
In that case, it would be a great place to start by creating a passive income stream that you dedicate to investing. There are many options out there, from renting out your equipment to even asking for a raise! These are both passive ways to make more income. However, if you’re looking for something you can start pretty much right away, I would recommend renting out a parking spot.
Whether you’re in an apartment building, or a home, there are likely individuals who are looking to save extra cash by undercutting the competition and saving in the process. This could bring in as much as $1,500 per year in passive income! What’s more, applications such as Just Park do all the heavy lifting for you.
Start investing
Once you’ve started your passive income stream, you can start investing! And doing so on a regular basis, such as every time you receive a paycheque, will allow you to get in on the growth of your investment immediately.
A great option is to consider a blue-chip dividend stock. One that has seen growth for years to come, but perhaps offers a deal at these levels. In this case, I would consider a company such as Canadian Imperial Bank of Commerce (TSX:CM).
While CIBC stock is rising, it’s still down from all-time highs. And it’s practically guaranteed to rise back to those levels, given it has done so within a year of hitting 52-week lows even in the most dire of circumstances. So let’s see what you could create from that $1,500 by investing in CIBC stock.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | PORTFOLIO TOTAL |
| CM – now | $65.60 | 23 | $3.60 | $82.80 | quarterly | $1,500 |
| CM – highs | $83 | 23 | $3.60 | $82.80 | quarterly | $1,909 |
That $0 has now turned into returns of $409, and dividends of $82.80. That’s total passive income of $491.80 in 2024 alone!
