The amount of money you can make with passive income runs the gamut. Depending on what kinds of income streams you develop, you could earn anywhere from a little extra cash flow<\/a> to enough for retirement<\/a>.<\/p>\n\n\n\n Earning extra money with little ongoing effort is possible, as long as you can afford the initial investment of money or time required to set up a passive income stream. It may be hard to land steady full-time work in an uncertain economy. Even if you have a job you enjoy, preparing for unexpected circumstances that can interrupt your temporary or permanent employment, is an important money management skill<\/a>. That\u2019s why it\u2019s smart to generate several other sources of income, so if you lose one, you can still maintain financial independence<\/a>.<\/p>\n\n\n \n\t\t\t\t\tSee what Canadian Redditors are saying about ways to generate passive income.\t\t\t\t<\/p>\n\t\t\t\t\t<\/div>\n\n\t\t Here are six examples of ways to earn passive income in Canada.<\/p>\n\n\n\n Earning passive income from investments is likely one of the most popular and easy ways to make extra cash, though you\u2019ll need some funds before you start investing<\/a>.<\/p>\n\n\n\n Dividend stocks<\/a>, which pay company earnings to investors regularly (often quarterly) are an especially good option, as investors make money without needing to sell the stock. You can reinvest your dividends, which gives you more cash-generating potential, or take the money as cash.<\/p>\n\n\n\n If you don\u2019t feel comfortable picking and choosing individual stocks on your own, you can opt for index funds or exchange-traded funds that hold dividend stocks. Since these types of investments carry a selection of stocks, they tend to balance portfolio risk.<\/p>\n\n\n\n You can choose a robo-investing company that will create an investment portfolio for you based on your needs or an even more hands-off approach suitable for investing beginners<\/a>.<\/p>\n\n\n\n If you\u2019re planning on saving the passive income you earn for a long-term goal, park those dividend investments in the right place. Consider holding them within a tax-free savings account (TFSA) or registered retirement savings plan (RRSP)<\/a> so your earnings grow tax-free.<\/p>\n\n\n\n If you want a unique way to invest extra cash, consider peer-to-peer lending. Professional lending platforms, like Lending Loop, help individual investors loan money to vetted Canadian businesses in exchange for monthly interest payments. You\u2019ll need to have some money available to start this passive income stream and be comfortable with a certain amount of risk.<\/p>\n\n\n\n For reliable, slow and steady (if small) returns, you won\u2019t do any better than a high-interest savings account<\/a>, which will let your money sit and grow for years. However, you\u2019ll notice that even the top rates from online-only banks<\/a> may not approach inflation rates, making this a low-effort but low-return passive income option.<\/p>\n\n\n\n Possibly the most traditional and well-known form of passive income, owning a rental property can be lucrative to earn extra cash. You might choose to rent a secondary property to long-term tenants or rent a room in your home to overnight visitors through an online service.<\/p>\n\n\n\n Unfortunately, this option can be challenging as buying a property<\/a> usually requires a large upfront payment and a lot of legwork. Then you\u2019ll have ongoing expenses like property taxes<\/a>, maintenance, insurance, and potentially a local business license. But if you\u2019re ready for the realities of being a landlord, renting out real estate can be a great way to earn passive income.<\/p>\n\n\n\n Making money online<\/a> is one of the best ways to generate extra funds. If you enjoy writing about an area of expertise (such as personal finance or travel), try to build up an audience. Eventually, you can make money by displaying ads or sharing affiliate marketing links. Once you become an authority in a given area, you could even use your blog to promote your services, like courses, e-books, speaking engagements, freelancing, and more.<\/p>\n\n\n\n However, while it\u2019s often touted as passive income, starting a blog and attracting readers requires a great deal of hard work both at the outset and as you continue to create new content.<\/p>\n\n\n\n Popular e-commerce platforms like Shopify make it easy to start a small business where you can sell your products or services. If you have a unique product or service to sell, you can open an online store. You may even want to consider dropshipping, which is when you sell a product but rely on a supplier to store inventory, process your orders, and ship items.<\/p>\n\n\n\n If you don\u2019t want to manage an e-commerce site on your own, you can sell handcrafted creations through an online store like Etsy. Again, this option technically falls into the category of passive income, but, since it requires you to start a small business<\/a>, it still requires a fair amount of work.<\/p>\n\n\n\n Sandra MacGregor is a freelance writer who has been covering personal finance, investing and credit cards for over a decade. Her work has appeared in a variety of publications like…<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tRead more about Sandra MacGregor and explore their articles<\/span>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n<\/div>\n\n\n\n\t The best high-interest tax-free savings accounts (TFSAs) have minimal fees and earn high rates of interest.<\/p>\n\t<\/div>\n\n\t Reassessing your budget, taking advantage of sales and rewards programs, and opening a GIC are ways to hedge against inflation.<\/p>\n\t<\/div>\n\n\tBenefits of passive income<\/h2>\n\n\n\n
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\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\tRead up about passive income on Reddit<\/h3>\n\t\t\t\t\t\t\t
Passive income ideas in Canada<\/h2>\n\n\n\n
Choose passive income investments<\/h3>\n\n\n\n
Try peer-to-peer lending<\/h3>\n\n\n\n
Open a high-interest savings account<\/h3>\n\n\n\n
Rent out real estate<\/h3>\n\n\n\n
Become a blogger<\/h3>\n\n\n\n
Start an e-commerce site<\/h3>\n\n\n\n
\n\t\t\tAbout the Author\t\t<\/h4>\n\n\t\t\t\t\t
\n\t\t\t\tDIVE EVEN DEEPER\t\t\t<\/h4>\n\t\t\n\t\t
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\t<\/a>\n\t\t\t\n\t\n\t\tBest Tax-Free Savings Account Rates in Canada for 2025\t<\/a>\n<\/h4>\n\n\t
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\t<\/a>\n\t\t\t\n\t\n\t\t5 Survival Strategies for Times of High Inflation\t<\/a>\n<\/h4>\n\n\t
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Hannah Logan<\/a>![\"\"](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2022\/03\/Shannon-Terrell-headshot-e1648578818586-40x40.png\")
Shannon Terrell<\/a>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<\/div>![\"How](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2022\/04\/cash-flow-e1649798369330-460x191.jpg\")
\t<\/a>\n\t\t\t![\"\"](\"https:\/\/www.nerdwallet.com\/ca\/wp-content\/uploads\/sites\/2\/2021\/07\/BarryChoi-e1626212860872-40x40.jpg\")
Barry Choi<\/a>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<\/div>\t\t<\/div>\n\t<\/section>\n\n","protected":false},"excerpt":{"rendered":"