Lazy Canadians: Here’s How You Can Make $200 Per Week in Passive Income

To earn $200 a week, invest money in high-quality stocks or ETFs.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

First, I have a confession: I’ve always been highly skeptical of passive income. And anytime I read articles on the topic or hear gurus speak about it, I always get the impression that they’re promising me “fast money” on income streams that take very little time to set up.

From what I’ve learned, however, passive income is typically neither fast nor easy. To turn passive income into a lucrative enterprise, you typically have to invest your time and energy as well as money upfront. Even then, you could still fail to produce a strong stream of passive income.

That said, there is one truly passive stream of income. It requires some maintenance, but nothing like writing an ebook or founding a successful blog. You could easily earn $200 per week with this source of passive income, perhaps even more.

How to make $200 per week in passive income

What is this truly “lazy” income that I speak of? It’s simple: earn money off stocks and passively managed funds.

This is the classic way of creating passive income. Instead of starting a YouTube channel or selling ebooks, you pick great, high-quality stocks that will grow your money over long periods of time. Both stocks and passively managed funds grow by compound interest, and though you’ll have to pay taxes on capital gains in a non-registered account, you can invest money in tax-advantaged retirement accounts, such as a TFSA, to avoid them altogether.

Now, don’t get me wrong: this isn’t a cheap enterprise. If you’re going to earn money off stocks or funds, you will need a hefty upfront sum. In order to earn $200 per week, you’ll need an initial investment of $120,000 and an average yield of 9%. You could also have an initial investment of $137,500 and an average yield of 7%, which will give you roughly $200 per day, with higher initial investments requiring smaller yield rates.

A 9% yield is fairly high, and you’ll likely need to pick your stocks wisely so as to avoid losing money on that initial investment. To accomplish this, you might want to diversify your stocks, picking a combination of growth and stable stocks. In this way, you can capitalize on the immense upward gains from the former, while also anchoring your portfolio in the stability of the latter.

Of course, picking stocks takes time. For a truly passive source of income, you could always invest in an index fund or ETF. Many of these passively managed funds have low management fees and fairly high yields, especially over long periods of time. Both index funds and ETFs come fully diversified, too, giving you a potential hedge against market downturns.

Can you really earn $200 a week from stocks?

Definitely. In fact, depending on your investment prowess, you could earn far more than $200.

Of course, stock investing requires time, too. You have to know enough about companies to feel confident investing in them. And you have to navigate market risks in order to prevent yourself from losing money. But if you invest in great companies over the long run, you could create a passive-income stream that might even replace your normal paycheque — at least, that’s the dream, right?

Just Released! 5 Stocks Under $50 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $50 a share.

Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.

Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Personal Finance

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Maximizing Your TFSA: Smart Investment Moves for 2025

Stocks like Enbridge provide significant dividend income, which is ideal for tax-savings within your TFSA.

Read more »

woman retiree on computer
Investing

Retirees: Here’s How to Boost Your CPP Pension

Retirement planning is best done when considering not only your CPP pension, but also your investments in income-producing stocks like…

Read more »

Personal Finance

Here’s Why a Big Emergency Fund Is a Terrible, Terrible Idea

Here's why saving more than six months' worth of expenses can be disadvantageous to your household.

Read more »

Personal Finance

5 Super-Simple Ways to Completely Ruin Your Credit Score

Building your credit score takes time, dedication, and smart decisions. Tearing your credit score apart — well, you could do…

Read more »

Personal Finance

5 High-Paying Side Hustles That Could Help You Save for Retirement in 2022

If you're struggling to save for retirement, here are five side gigs that could give your retirement fund a boost.

Read more »

Personal Finance

The Tax Deadline Is Almost Here! Here Are 5 Things You Need to Know if You Haven’t Filed Yet

The deadline to file your taxes is May 2. If you haven't started yet, here's what you should know.

Read more »

Personal Finance

New to Investing? Be Sure You Avoid These 5 Newbie Mistakes

If you're new to investing, here are five big mistakes you should watch out for.

Read more »

gas station, convenience store, gas pumps
Personal Finance

Costco vs. Canadian Tire: Which Rewards Card Will Save You More on Gas in 2022?

The CIBC Costco Mastercard earns 3% back at Costco Gas, and the Canadian Tire Mastercard earns 10 cents per litre.…

Read more »