Difficult economic periods often cause people to look for ways to generate additional income. It’s always good to have a little protection for your finances.
Here are some ideas on how to do this:
Accommodate a student or athlete in a room in your home
Many children travel for school or sports and need temporary housing in a safe and friendly home. Maybe you qualify for this and can pocket some money in the process.
To find people looking for tickets, check the classified ads in local newspapers, place an ad on Craigslist, Kijiji, or similar sites. Or try googling the term ‘ticket’ with either ‘student’ or ‘athlete’ as well as your hometown.
rent a room
A long-term option for additional income
Rent out your garage as storage space
Don’t you use your garage for anything other than storage? Might as well clean it and rent it out!
Because enthusiasts in particular are always looking for indoor storage that costs less than a formal storage facility.
Become a microlender
The peer-to-peer consumer lending industry is still in its infancy in Canada, but it has taken off in places like the US. What is it?
In short, you lend your money to pre-qualified borrowers, facilitated by an organization that specializes in this. Micro Lending Canada follows the changes in this area.
Become an online reseller
Many people are already doing it, but there is always room for someone who is enthusiastic and has an eye for value. What you do is scan garage sales, local classifieds, online classifieds, etc. for items that sell for less than they are worth. You accept the deal and then turn around and resell the item elsewhere for a profit.
Often people are just tidying up and happy to get something for their old stuff they no longer want, so deals abound. I once made $200 flipping an espresso machine! For smaller items, I find eBay is usually the best way to get the best price.
In my experience, the best and most efficient way to do this is to become an “expert” on a limited range of items, to the point where you instantly recognize a bargain price and are sure you can resell it for more. Having a wider range can lead to errors in valuation.
start a blog
Expert in a specific field? Do you enjoy writing? You may be able to turn your knowledge into a few extra dollars with a blog. There are many free blog sites, such as WordPress and Blogger.
Create a dividend portfolio
With current market conditions, dividend yields are at historically high levels. It might be time to take a look at stocks again.
This is the ultimate in passive income, in my opinion. Given enough time, you could build a stock portfolio that funds your entire lifestyle. In the meantime, it could just be a supplemental source of income.
In my case, it is about 5% of my monthly needs. Some way to go, obviously, but in the meantime I use the cash to pay off my mortgage.
Buy a rental property
Less passive and currently not cash flow positive in many parts of Canada (due to high prices), it’s a great long-term way to build an income stream.
When (or if!) prices and rents make sense, I plan to start building my empire. Keep an eye out for a future article on this, I have lots of great information on this and a nifty Excel calculator for property valuation.
Get paid to attend focus groups and take surveys
Stay tuned for more details, I’ll have a full article on this with links to all the options available to Canadians.
And there you have it, several ways to generate passive income in this time of recession. Some require more capital than others, some require absolutely nothing. Earning extra money is possible for those who are diligent and this article will put you on the right path to earning that extra money.