No time for a side Gig? Try these passive income ideas instead


We could all use a little extra money, right? (If you just said no, I’ll assume you’re full of cash.) With inflation through the roof and vacations draining budgets, bringing in extra income will surely ease some anxiety or at least give us some relief. more cushion Fold over.

But not everyone has time to take a side gig. Most of us have pretty demanding jobs, as well as families that need us, not to mention personal lives that help keep our feet on the ground.

The good news: You don’t need an odd job to earn extra income. You can earn it passively rather. And if you are looking for a simple passive income strategy, these three strategies can definitely point you in the right direction.

CPG scales

A guaranteed investment certificate (GIC) is a popular form of fixed income. Basically, you earn interest on a lump sum for a specific period of time, after which you get your initial deposit back plus the interest it earned.

Terms can last from a few months to five years or more. In general, the longer the term of your GIC, the higher your interest rate. The only problem with long terms: they can come with withdrawal restrictions or penalties, such as loss of interest earned, if you try to cash out before the end of the term.

Most people can’t afford to lock in their savings for five years or more, that’s where scales come into practice. With a “ladder” strategy, you buy multiple GICs, each with different terms. For example, you could put equal amounts of savings into a six-month GIC, a one-year GIC, a 1.5-year GIC, and a two-year GIC.

After six months, your six-month GIC will expire and you will be able to access that money. In addition, it is that all of your GICs will be six months closer to maturity, which means you technically have a six-month GIC, a one-year GIC, and a 1.5-year GIC. If you don’t need the money right now, you can use the money in your six-month GIC to purchase another two-year GIC. So every six months you buy a new two-year GIC and your money will keep growing.

Having multiple GICs allows you to take advantage of the higher GIC rates over the long term, while ensuring that you don’t lock in your savings for longer than you can afford.

It can be a lucrative strategy. In this lending climate, however, interest rates might be too low to really make any money. Nonetheless, I would keep this strategy in mind, and when interest rates rise – and it looks like they might do so next year – you can put it into practice.

Dividend stocks

A dividend stock is a stock that earns you money just for owning stock in its company. Yes it is in addition to the underlying value of the stock itself.

The best dividend-paying stocks will have a generous payout while increasing in value. To find one, look for companies that are solidly established, have a long history of paying dividends, and have a fairly high payout ratio. Right now, a good dividend yield would be around 3.75% to 5%.

REIT

As we all know, real estate is hot right now. It’s so hot, in fact, that Canadian investors are making a fortune, buying homes, flipping them, turning them into rental properties or Airbnb, or just toss them above potential buyers in the form of a blind auction.

Of course, not everyone has time to hammer home their nails and redo bathrooms, and neither do we have time to go through the home buying process in order to get an investment worthy of the name.

For those who cannot make real estate a side business, you can buy shares of a real estate investment trust (REIT). Essentially, a REIT is a company that manages a lot of real estate. Like an ETF or mutual fund, you pool your money with other investors and realize capital gains when the REIT company is doing well.

At the end of the line

If you don’t have time for a side gig, you don’t need to try and find one. Apply these three passive income ideas and you could make your savings work harder for you.


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