Whether you’re a student, unemployed graduate, nursing parent, or full-time worker, you can improve your income passively in Canada.
A passive income stream provides you with income without requiring much time and effort.
The right passive income idea can provide you with a steady and reliable source of income, giving you the financial freedom you need to enjoy your life.
Unfortunately, it can be challenging to determine the perfect passive income idea for you due to the multiple options out there.
I have done the hard job for you by identifying the 12 proven passive income ideas in Canada for 2023.
Let’s go over each of them below.
Table of Contents
1. Renting a Spare Room
With the consistent demand for rental properties across Canada, a spare room can generate a considerable amount of monthly income for you.
Renting a spare room allows you to earn passive income while utilizing unused space in your home.
To get started, you need to first determine the rent amount based on the location, size, and amenities of the room.
The next step is to list the room on popular rental platforms like Airbnb or Kijiji to attract potential tenants.
It is essential to be aware of the laws and regulations surrounding rentals in your area, as different cities have different tenancy rules in Canada.
2. Selling Unused Items
Selling unused items is a popular passive income idea in Canada. It involves selling items that you’re no longer using, such as clothing, electronics, and household goods.
You can sell the items through online marketplaces such as eBay, Amazon, or Facebook Marketplace.
With the rise of online shopping, selling unused items has become more popular, as you can reach a wider audience and sell your items from the comfort of your home.
However, it is important to keep in mind that selling unused items requires some effort, such as taking photos, writing descriptions, and packaging and shipping the items.
3. Selling Courses Online
Selling courses online involves creating and selling educational content to people who are interested in learning about a particular subject.
With the rise of e-learning platforms, such as Udemy or Teachable, setting up and selling online courses has never been easier.
This can be a great way to monetize your expertise and share your knowledge with others.
To maximize your earnings, you should focus on creating high-quality content that offers real value to your audience.
Additionally, you should consider promoting your courses through various online marketing channels, such as social media or search engines, to reach a wider audience.
4. Peer-to-Peer Lending
Peer-to-Peer (p2p) lending involves investing in loans made to individuals or businesses in exchange for a portion of the interest earned.
The returns on peer-to-peer lending can be substantial compared to the returns of traditional lending institutions.
All you need to get started is to sign-up with a p2p lending platform like goPeer.
You can then decide the amount to invest, the loan terms, and the level of risk you’re comfortable with.
However, it is important to note that investing in peer-to-peer lending does come with some risk as some lenders may default in repaying the loan.
Blogging is a popular passive income idea in Canada as it allows individuals to earn money from their writing skills and passion.
This passive income idea involves writing on a blogging platform and earning money through:
- selling of your services
- affiliate marketing
- sponsored posts
Blogging has endless earning potential but it requires consistency and commitment more than many passive income ideas.
The key to success in blogging is to focus on your niche, create high-quality content, and engage with your audience.
6. Writing and Selling e-Books
Writing and selling an e-book is another popular passive income idea in Canada.
With the rise of self-publishing platforms such as Amazon Kindle Direct Publishing, it has become easier for individuals to publish and sell their books.
The key to making a successful e-book is having a unique and engaging concept and promoting it effectively.
Once the e-book is published and starts selling, you will receive a royalty payment each time a copy is purchased, providing a steady stream of passive income.
With over 2 billion monthly active users, YouTube provides a vast audience for content creators to monetize their videos through advertisements, sponsorships, and merchandise sales.
YouTubing involves creating videos and publishing them on your YouTube channel.
When you reach 4,000 public watch hours and attract 1,000 subscribers, you can monetize your YouTube channel and start making money even while sleeping.
The key to success on YouTube is to consistently upload high-quality content that appeals to your target audience.
With time, you can build up a significant following, which can translate into a significant stream of passive income.
8. Affiliate Marketing
Affiliate marketing involves promoting merchant products or services through an affiliate link.
If a customer clicks on the link and makes a purchase, you earn a commission.
You can share your affiliate links through websites, blogs, social media, or even email listings.
Affiliate marketing requires minimal effort as you only need to refer people to businesses. However, it requires a significant amount of time to build an audience.
With the right strategy, affiliate marketing can provide you with a steady stream of passive income while sleeping.
9. Virtual Assistant (VA)
As the digital age continues to expand, more and more businesses are seeking virtual assistants to help with tasks such as:
- customer service
- administrative tasks
If you have strong organizational and communication skills, you can provide virtual assistant services to businesses or individuals in need.
This can be done from the comfort of your own home and with flexible hours.
As technology advances and businesses continue to adopt remote work, the demand for virtual assistants is expected to increase, leading to more opportunities to earn passive income through this method.
10. Online Tutoring
Online tutoring is a flexible and convenient way to earn money and can be done from the comfort of your home.
By offering tutoring services in a subject or multiple subjects, you can earn money regularly at your own rates and hours.
You can use video conferencing software to conduct sessions and offer your services to students from all over the country.
Places you can find online tutoring jobs include:
- Course Hero
11. Online Surveys
Online surveys are a convenient and flexible way to earn a passive income, as you can participate from the comfort of your own home.
Companies are always looking for consumer feedback on their products or services.
By participating in online surveys, you can earn a small amount of money for your opinions.
Some of the popular survey websites in Canada include Swagbucks, Survey Junkie, and InboxDollars.
The amount you earn depends on the length and complexity of the survey, but it can add up over time.
Many survey websites pay in cash or gift cards and are free to join.
12. Saving in HISA
One of the easiest and most accessible passive income ideas in Canada is saving in a high-interest savings account (HISA).
By making a lump sum deposit or regularly contributing to your savings, you can watch your money grow passively in the form of interest payments.
This is a low-risk option for generating passive income and a great way to start building your wealth without much effort.
However, how much you earn from a HISA depends on the institution and type of account.
The following are some of the best high-interest savings accounts in Canada at the moment:
- Simplii Financial High-Interest Savings Account: 5.25% promotional interest rate
- Tangerine High-Interest Savings Account: 5% promotional savings rate
- Saven Financial High-Interest Savings Account: 3.75% regular interest.
You should click on the attached links to learn more about each of the above high-interest savings accounts.
When choosing a HISA, it’s essential to look beyond the interest rate and consider other factors that may impact your returns.
This means you need to also consider the minimum balance, monthly fees, withdrawal fees and rules, funds accessibility, deposit protection and so on.
There you have the 12 best passive income ideas in Canada.
Which is the overall best? The ball is in your court to decide.
Ultimately, the best passive income idea for you will depend on your circumstances, goals, and skills.
As such, it’s important to do your research, consider your options carefully, and choose a passive income idea that aligns with your financial goals and lifestyle.
Before leaving, check out the following articles to learn more about how you can improve your income in Canada.