Having multiple streams of income is one of the best ways to become financially stable and reach early retirement, which many Canadians aim for. This way of living also serves as your safety net if a financial emergency ever happens.
Want to know the best way to generate multiple streams of income?
That would be finding passive income sources to earn money even when you’re not working.
This article lists the top 30 smart passive income ideas you can try, whether in your 20s or your senior years.
Key Takeaways
- If you want to create multiple streams of income in your 20s, start small, work on your time management skills, and take time to explore your options.
- Some of the best passive income ideas are selling digital products, investing in stocks, real estate, or bonds and monetizing content.
- You should have multiple streams of income for financial stability, life flexibility, and the chance to earn with your passion.
- Educating yourself about how money works is the first step to building wealth from nothing.
How To Create Multiple Streams Of Income In Your 20s
Creating multiple streams of income in your 20s isn’t as complicated as you might think. By keeping the following tips in mind below, you can take control of your time and make it work for you rather than the other way around.
Explore Your Options
There are hundreds of options to earn multiple passive incomes for beginners. So, don’t just settle for the first few ideas that come to mind. Spend time researching the best ways to accomplish having multiple streams of income.
Since you’re already reading this article, you’re on the right path.
Start Small
Trying out too many income ideas at once may lead to burnout and increase the chances of failure. Focus on your 2nd income source first, and when you’re comfortable and more efficient with it, branch out to other passive side hustles.
Learn Time Management
Turning multiple streams of income ideas into reality requires strict time management. Hence, you should learn to schedule your tasks effectively and to work through your to-do list based on importance and urgency.
Smart Passive Income Ideas
1. Invest In Real Estate
Invest in a real estate property you can then rent out to tenants. You’ll receive consistent cash flow through monthly rent without actively engaging with your rental’s day-to-day operations.
Your gross earnings can reach thousands monthly. However, this income stream requires a significant initial investment, which isn’t applicable for those looking to earn without massive upfront fees.
2. Invest In Stocks
Purchase stock of publicly-traded companies and earn returns through dividends and capital appreciation. You can invest in stocks through brokers or financial institutions. Alternatively, you can use trading apps in Canada to buy/sell stocks.
How much you can earn through stock investments depends on your capital, trading strategy, and market conditions. There’s room for high returns, but note that you may lose money due to the market’s high volatility.
3. Open A High-Interest Savings Account
Putting your money in a High-Interest Savings Account is one of the safest passive incomes for beginners. Your capital is protected, and you can access your deposits anytime.
The downside, however, is that you may not earn a lot from this passive income idea.
4. Buy A Business
Purchase businesses that can generate passive income without your daily involvement. There are hands-off businesses online and offline, giving you a wide variety of choices.
For example, you can buy a DIY laundromat that doesn’t require employees.
Another business option you can do online is to buy existing content websites and earn passive income through their ads, affiliate links, and sponsors.
Buying a business sets you up for long-term success if good market conditions are met. However, you must have sufficient capital to pursue this passive income idea.
Tip: Here’s how to start a business in Canada.
5. Invest In Real Estate Investment Trusts (REITs)
REITs allow you to buy stocks of their real estate properties to generate income.
Like any other form of trading, if the business is doing well, you earn money in REITs.
Unfortunately, the opposite may happen if the real estate market isn’t doing well. So, it’s highly recommended that you diversify your REITs portfolio due to the potential instability of this income source.
6. Peer To Peer Lending
Use peer-to-peer lending platforms like goPeer or Lending Loop to lend money to individuals or small businesses. You can potentially earn more than you can make through a High-Interest Savings Account.
Before hopping into this income source, it’s important to understand the risk of borrowers defaulting on their loans. When this happens, you’ll lose your money.
7. Set Up An Annuity
Buy an annuity from an insurance company and receive steady income at your preferred time intervals. Here’s how this passive income generally works:
- You pay the insurance company a lump sum.
- The company gives you a steady income for the duration of your choice.
How much you receive depends on your health status, age, investment amount, and chosen annuity options.
8. Use A Bond Or GIC Ladder
Bonds and Guaranteed Investment Certificates (GICs) are part of fixed-income securities. Hence, they’ll give you regular interest payments for lending money to an establishment for a specified period.
Bonds and GIC ladders are less risky than stocks. However, you’ll receive lower returns.
Multiple Streams Of Income Ideas
9. Create An Online Course
Teach your skill or passion to others by creating an online course. You only create a course once, but it can generate a lifelong passive income.
The downside of online courses is that you must spend much time and effort marketing and branding your course before earning serious money.
10. Start A Blog
Based on experience, one of the best smart passive income ideas is to start a blog. Writing is a creative outlet for millions of people, and just as many individuals fancy reading online.
It’s a win-win situation for you and your reader.
There are 6 steps to starting a blog that generates money. But spoiler alert, this journey won’t be a short one.
11. Write An eBook
Share your knowledge and writing creativity by selling an eBook. Like online courses, each eBook is only created once but can generate revenue nonstop.
Some platforms you can use to sell eBooks are Amazon Kindle and Shopify. Just bear in mind that eBook sales aren’t always consistent.
12. Affiliate Marketing
Earn money by redirecting your audience to selling pages of products and services others provide. You can promote affiliate links through blogs and social media platforms like Facebook, Instagram and Youtube.
How much you can earn heavily depends on your commission rates. But if you have a solid number of followers, readers, or viewers, you can earn up to millions as an affiliate.
13. Flip Products Online
Buy cheap products and resell them for a much higher price.
Flipping is an easy passive income for beginners, including teenagers. However, if you don’t research the market trend consistently, you could end up stocking products with little to no demand, making you lose money.
14. Create A Mobile App
If you have coding knowledge or know a developer, give creating a mobile app a shot.
Creating applications isn’t easy, but if you make one that’s entertaining, helpful, and/or unique enough, you can earn a significant amount of money. You can even reach millions with this passive income.
Unfortunately, though, success isn’t always guaranteed when creating digital services.
15. Rent Out A Room On Airbnb
Got a spare room or property you sometimes forget about? Consider renting it out to earn passive income. All you have to do is maintain the cleanliness and safety of your rental space before tenants move in, and you’re good to go.
Bear in mind, however, that this passive income comes at a risk of property damage or even theft.
16. Rent Out Your Car
You can make at least $500 of extra income by renting out your car.
Some platforms that will help you to do so are Turo and Getaround. You just list your vehicle for rent and start earning money.
The platforms I mentioned handle the insurance of your car. However, you can’t totally eliminate the risk of damaging your vehicle if an accident happens.
17. Advertise On Your Car
This side hustle is one of the best ways to make money with the least effort. After all, you just drive your car as usual and get discounts, free products, or a check by putting up companies’ ads on your vehicle.
The downside, though, is your car’s wrap may be damaged by the advertisements you put up.
18. Rent Out Your Parking Space
Getting a parking spot in a busy city is sometimes worse than finding a needle in a haystack. Lucky for you if you live in a neighbourhood like this because you can rent out your parking space for a good amount of money.
You can list your parking lot on platforms like SpotHero and set your price. Just remember that you might need to obtain permits for this income idea, so research your city’s regulations before renting out your parking space.
19. Start A YouTube Channel
Confidence, a camera, and exciting ideas are all you need to start a Youtube channel. Once you build your followings, money will come flooding in, and as a bonus, you’ll get free products consistently knocking on your door.
Of course, though, competition is tough in the influencer world. So, you have to stand out to earn consistently.
20. Sell Print-On-Demand Products
Take advantage of Print-on-Demand services by platforms like Amazon KDP. All you have to do is upload a PDF file of your book, and when a customer orders it, they’ll receive a physical copy directly from your service provider.
This passive income is a huge timesaver, but sales may not always be consistent.
21. Start A Podcast
Prepare a decent microphone, practice your audio editing skill, and you’ll be one record away from earning money as a monetized podcaster. This side gig is a great creative outlet, but as all monetization processes go, it takes time to earn your first buck.
22. Host Live Events And Workshops
Host virtual live events and workshops where you can sell ad spaces during your live stream or even advertise products yourself. This passive income requires a lot of preparation in building your audience and niching down.
However, once you hit the right audience base and get consistent views, advertisement offers will flood in, giving you a steady income.
23. Sell Photography Online
If you have an eye for taking great images, try selling your photos online. This passive income source won’t feel like a job for those passionate about photography. Remember, though, that you most likely won’t earn much during the early phases of this side hustle.
24. Start Dropshipping
Dropshipping is when your suppliers directly ship the products when customers order from your store. You simply act as the bridge between the manufacturer and the buyer. So, you don’t need to invest in stocking products or packaging.
It’s important to note, however, that your profit margin will be lower than if you do the order fulfillment process yourself.
25. Buy And Sell Websites
Buy already established websites, improve their SEO or web design, and resell them for a much higher price. This passive income source is similar to flipping physical products.
Hence, although you can earn significant amounts if you’re skilled enough, you must market and price your websites wisely. Otherwise, you’ll be sitting at a loss.
26. Earn Loyalties
Create original content such as music, books, or movies and earn a percentage of your creation’s profit for life. You’ll earn money by pursuing your creative passion, which isn’t a common sight these days.
Bear in mind, though, that not every content you’ll put out will be a hit and generate money unless you become an established creator.
27. Get A Vending Machine
Purchase or lease a vending machine you can then stock up to earn passive income. Some establishments where you can place vending machines are condominiums, offices and bowling alleys.
However, getting permits and permission from suitable locations are the time-consuming aspects of this business.
28. Sell Digital Products
Create digital products such as templates, planners and graphics, then sell them online. There’s no limit to how many times you can sell each digital product, making this side hustle a potentially life-long passive income source.
The downside? You must be prepared to fight piracy and copyright infringement.
29. Get Paid Doing What You Always Do
Dozens of apps and websites are willing to pay you money just by doing activities you already do, such as taking surveys, walking, watching videos and playing games.
You probably won’t earn thousands through this passive income idea, but you’ll earn yourself several free cups of coffee a month without too much effort.
30. Sell Handmade Products
Making handmade products like bracelets and home decor is a great way to relieve stress. Luckily, they can also give you extra income. Hop on selling platforms like Etsy or Shopify and sell products you’ve made yourself.
It might take time to decide on your branding, price, and target audience, but you’ll have consistent cash flow once you establish a solid customer base.
Why Should You Have Multiple Streams Of Income?
Relying on a single source of income is no longer ideal, and the reasons go beyond just having more money to spend, save or spare.
Let’s break down the top 3 reasons you should have multiple income streams.
Financial Stability
The 2020 pandemic showed us that one unexpected event could flip the economy upside down. If you only have a single source of income, you’ll be putting yourself at significant risk for financial instability or even bankruptcy in these events.
By earning in multiple ways, you’ll still have money coming in even if one of your sources of income is affected.
Flexibility
Compared to single-income source earners, you’ll have better flexibility in life if you have multiple income streams. For example, you can work from home, take long vacations, and work without a predetermined 9-5 schedule.
Earn With Your Passion
Becoming a multiple-income earner allows you to pursue your passion without sacrificing your main income source. After all, you can turn any skill into a profitable business. Start earning while feeling fulfilled and rewarded.
FAQs
The 7 streams of income are earned income, profit income, interest income, dividend income, rental income, capital gains income, and royalty income.
Most rich people don’t rely on just one income source for a living. Rich people often diversify where their money comes from with investments, bonds, and other passive income sources.
The first step toward building wealth from nothing is to educate yourself about how money works by reading books, listening to podcasts, or taking courses. Then, based on your acquired knowledge, decide the best ways you can earn money based on your skill sets, environment, and goals.
The big four habits of millionaires are: think long-term, pay yourself first, make smart choices, and continuously learn how to put money to work.
Related:
