Increase Your Wealth with these Passive Income Ideas

In today’s fast-paced world, finding ways to earn money without actively working for it can bring both financial stability and peace of mind. Passive income is the key. It allows you to earn money with minimal ongoing effort. Imagine earning while you sleep, travel, or spend time with family. Sounds great, right? Let’s explore some simple yet effective passive income ideas that anyone can start.

Peer-to-Peer Lending

peer-to-peerPeer-to-peer (P2P) lending is a fantastic way to earn interest by lending money directly to individuals or small businesses through online platforms. Think of it as being the bank, with higher returns but with a higher risk factor.

What is Peer-to-Peer Lending?

Peer-to-Peer lending (P2P lending) platforms connect borrowers with investors. As an investor, you can lend small amounts, sometimes as little as $20, to multiple borrowers. These borrowers pay back the loan with interest, which becomes your profit. Here’s the story of Peter who wanted passive income.

How Peter Started P2P Lending

First Peter chose a P2P Platform. After careful research he was careful to select a reputable platform. Peter looked for one with good reviews and a solid track record.

Next he signed up, created an account and deposited his predetermined investment amount. Most platforms allow small initial investments. In Canada, there are currently (2024) two platforms Go Peer no minimum investment but suggest $1,000 for diversification purposes, Lending Loop, minimum $200 investment.

Peter then selected from the available loan and chose ones to invest in based on the borrower’s credit score and the purpose of the loan.

Diversification is the key, so Peter spread his investment across multiple loans to reduce risk.

Peter Used the Following Safety Tips to Protect His Investments

He researched borrowers by looking into the borrower’s credit history and the purpose for the loan.

Peter diversified since he didn’t want to put all of his money into one loan.

He started with a small investment until he understood exactly how his chosen platform works. Only when he was sure that he understood the platform did he increase his investment by adding to it each month.

For more details on the basics and safety of P2P lending, look for informative articles on trusted financial websites such as: Wealth Simple, Advisory Savvy, and Million Dollar Journey.

Crowdfunding Real Estate

crowd fundingAnother exciting passive income idea is crowdfunding real estate. This method allows you to invest in property projects without buying an entire property yourself.

What is Crowdfunding Real Estate?

Crowdfunding platforms pool money from many investors to fund real estate projects. In return, investors receive a share of the profits from these projects, often through regular interest payments.

How Francis Started Investing in Real Estate

Francis chose a reliable crowdfunding real estate platform that matched her investment profile.

She create an account and completed her profile.

Next, Francis browsed the available real estate projects and decide where to invest her money.

Wisely, Francis contributed only a portion of the required funding for each of her chosen projects.


Why did Francis choose crowdfunding real estate project?

  • Because of the low entry barrier, she was able to start with a small amount of money.
  • She received interest payments at regular, fixed intervals.
  • Francis was able to diversify by investing in different types of real estate projects.

To dive deeper into this opportunity, read this full review of Canadian funds and other resources that explain the ins and outs of real estate crowdfunding.

Index Fund Investing

Investing in index funds is a classic way to build passive income. It’s simple and effective, especially for those new to investing.

What is an Index Fund?

An index fund is a type of mutual fund or exchange-traded fund (ETF) that tracks a specific index, like the S&P 500. When you invest in an index fund, you’re buying shares in a diversified portfolio of stocks, bonds, or other assets.

How David Started Investing In ETFs

First David chose an Index Fund by researching and selecting an ETF that aligned with his investment goals. Popular choices include funds that track the TSE, S&P 500 or other major indices.

David opened an Investment Account with a brokerage or investment platform.

Once the account was opened, he deposited his initial funds by transferring money from his bank account.

Finally, David Bought Shares of his chosen index fund.


  • David diversified by spreading his investment across many different companies.
  • A crucial point for him was not to pay the high fees attached to mutual funds. He was pleased to find that Index funds typically have lower fees compared to actively managed funds.
  • David knew that historically, index funds have shown steady growth over the long term.

To learn more about index funds and how to get started, look for beginner-friendly investing guides like the ones at Manage Your Money..

Start Something on the Side

While building passive income, it’s also smart to explore ways to generate additional income. Here are some side hustle ideas that can fit into your spare time, even if you have a full-time job.


Freelancing is a flexible way to use your skills and expertise to earn extra money.

How Harry Started

Harry sat down and identified his skills. Once he had that list, he was able to determine what services he could offer. He consider a number of services such as writing, graphic design, programming, and consulting. Harry decide to use his writing skills to generate instruction manuals.

He created a number of manuals for common household items. Harry used these to create a portfolio to showcase his work and to attract clients.

Joining a freelance platform like Upwork, Fiverr, or Freelancer to find gigs was his next step.

Finally, Harry decided that he would charge by the number of words written for his service.


  • Harry liked the flexibility freelancing offered him. He chose which projects to bid on, and set his own schedule.
  • Being able to earn extra income without risking his regular job was exactly what he Harry sought.
  • Along with making some money, Harry improved his skills and gain experience which helped in his regular job.

    Money-Making Apps

    small bag of moneySally was severally constrained because she was a full-time mom with two very active children under three years of age. She considered a number of apps that could help her earn money by completing simple tasks in her free time. Here are a few popular ones Sally looked at:


    SwagBucks lets you earn points by doing activities like filling out surveys, using their search engine, watching videos, and shopping online. You can redeem these points for cash or gift cards.


    InboxDollars, now known as Daily rewards, pays you for online activities such as playing games, watching videos, shopping, and reading promotional emails. It’s touted as a fun way to earn some extra cash.


    With MyPoints, you can earn points for sharing your opinions and completing surveys. These points can be exchanged for gift cards or cash.

    Survey Junkie

    Survey Junkie rewards you for answering online surveys and participating in focus groups. It’s a straightforward way to make money from your opinions.

    For detailed reviews and more information about these apps, check out our full reviews on each platform.

    In the end, Sally decided that she did not want to take a chance on being inundated with sales pitches from doing the surveys, etc. Since she is a highly qualified teacher, on leave of absence, Sally has decided to create and sell lesson plans on Teachers Pay teachers.

    Start A Business

    Turning your passion into a business can be both fulfilling and profitable. If you have a hobby or skill you love, consider how you can monetize it. Jane’s friends were always asking her for advice on repairing their computer and tablet problems. She decided that she would start a business offering advice on computer and tablet repair.

    The Steps Jane Followed Before Starting her Business

      First Jane identified her passion. Then she though about how it could be turned into a business.

    • She researched the market. Jane looked at similar businesses and tried to determine what would make hers unique.
    • She created a business plan. Jane carefully outlined her goals, target audience, marketing strategy, and financial projections.
    • Jane started a small-scale version of her business to test the waters.
    • Using social media, word of mouth, and other marketing techniques Jane tried to attract customers.

    Since she had invested only a few dollars into the venture, Jane was able to quickly shutdown her business when she realized it would not be profitable enough. Jane realized that her error was not researching the competition thoroughly enough. Most of the advice she had to share was freely available on youtube and blog posts.

    Ideas for Small Businesses

    • Sell Handmade Goods: If you’re crafty, sell your creations online or at local markets.
    • Offer Services: Use your skills to offer services like tutoring, pet sitting, or personal training.
    • Start a Blog or YouTube Channel: Share your knowledge or hobbies online and monetize through ads, sponsorships, and affiliate marketing.

    Take the First Step

    Starting a journey towards passive income and extra earnings can seem daunting, but with the right approach, it’s entirely achievable. Begin with one of these methods and gradually explore others as you grow more comfortable. Whether it’s through P2P lending, crowdfunding real estate, index fund investing, freelancing, money-making apps, or starting your own business, there may be a path that’s right for you. Remember, small steps can lead to big changes. Take the first step today and start building a brighter financial future.

    If none of these ideas appeals to you, take a look at 15 Ways That You Can Earn Money on the Side

    If you have any suggestions for Ways to Earn Money on the Side, please leave them in a comment below.


    Please don’t interpret any of this post as some sort of promise or implication of your future earnings. The average person rarely gets any results at all. Kind of like how the average person who buys home exercise equipment rarely ends up looking like the person in the commercials. I don’t know why that is, but I think it’s safe to say it’s true across the board. Here’s the bottom: THIS STUFF IS ALL HARD. And it takes WORK and RISK. On top of that, almost nothing ever works right the first time. At least not for me, anyway. You’ve got to stick with it. Think about it. If business was easy, everybody would be rich. So if you’re looking for a “magic pill” or an “easy button” that’ll make you money, you probably want to skip this post. Better you know now than be disappointed later.

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