There are a lot of different ways that you can earn passive income without having to do a bunch of extra work. If you do not have a lot of money to begin with, then you will need to start off small, and work your way to where you want to be. However, people with disposable income can quickly do these things and earn income while they are working their normal jobs.
The Best Ways You Can Earn Passive Income
Passive income is a way that you can earn money through a variety of means without having to actively work for that money.
- Open an investment account with an investing platform. There are a number of platforms and apps available to the everyday person where they can make investment purchases without the use of an advisor. This can be a bit risky but with the proper research and caution, it can be done. Some sites have put together a collection of investments with various risk levels based on your risk appetite. Based on your risk appetite, certain investment vehicle will make more than others but will be considered riskier.
- Invest your money into REIT’s. This option allows you to invest in real estate without the hassle of managing a property yourself. They operate fairly similar to stocks and bonds and can easily be sold to gain access to the funds that you have invested with the REIT account.
- Rent out a section of your home or garage. This option gives you the opportunity to rent out a section of your home to people needing extra space. The renter gets to avoid the hassles of renting from a storage unit and you get the benefit of income from otherwise wasted space.
- Start up a blog with an industry specific audience. Some people earn a passive income by producing content relevant to the needs and problems that people face every day. The income is generated by the amount of hits you have on your site. You can even tie in several sources of revenue through the one site and increase your earnings. You will have to produce regular content and keep up on the site to keep it current.
- Invest in a Guaranteed Investment Certificate, that’s backed by the bank of Canada.
- Shop online using sites and accounts that give you a portion of your purchase back. For instance, if you were to shop at a store and spend $100, you would not see any of that money back. However, if you shopped at the same store using a site that discounts the merchandise, then you could see one to five percent added to your account with them. You can cash out the money any time.
Earning a passive income does take some work to get started, but it is well worth the effort. There are online tools and research methods that can help you through the process. By just spending a few hours per day you can set yourself up to earning a passive income for the rest of your life.
The early retirement movement is growing in the US, but is it feasible for Canadians?
One of the most important long-term goals that someone can have is the goal of retirement. While there will come a time in which all people will need to stop working, there are some that will be able to retire earlier than others. Today, there is a big trend in the United States in which people are able to retire early. However, it is not yet clear whether this trend is taking place in Canada. While early retirement is always a challenge, there are a variety of ways that someone could reach their goal of early retirement.
Watch Your Budget
One of the most important things that you need to do when you want to retire early is to watch your budget. In order to retire, you will need to save some money and in order for it to last longer, you won’t be able to spend as much. Because of this, you should find ways that you can watch your budget to make sure that you have the money you need in the future. Doing this will drastically reduce your monthly spending and will allow you to get out of the workforce earlier.
Look for A Lower Cost of Living
When you are getting ready to retire in Canada there are many great ways that you can cut back on your expenses. One of the most effective is to look for a city that has a lower cost of living. While Toronto, Vancouver, and other big cities are known for big rents and mortgages, there are plenty of great places to live that are far more affordable. With some planning, you will be able to find a city that is more affordable and gives you a great quality of life.
Invest Early and Often
One of the most important ways to reach early retirement, is to invest early and invest often. As important as investing early and often, is to make sure you choose the right investment vehicle to invest in. Different types of investments will have different levels of investment risk, but will also allow for higher returns. One way that you can improve your investment returns is by getting better rates. Today, GIC rates are higher than they have in year past, which gives all people the opportunity to return their return on investment.
Understand The Canddian Pension Plan
If you do retire early, you need to make sure that you understand the Canadian Pension Plan. This program is often a primary source of income for retirees. However, it is not necessarily a great option for those that have retired early. In order to qualify for it, you will need to be at least 60 years old. Ideally, you should wait until you are 70 to start collecting on it as it will help to maximize your benefit. You should also spend time calculating what your benefit will be based on the wages you earned. Since you worked less years, you may not get as much of a benefit in the coming years.
By knowing these concepts and making doing the right financial planning early on, this will allow for you to be financially safe and set for early retirement later in life.