How to Create $1,340 in Passive Income in 2024

The new year is upon us, so it’s a great time to start thinking about what kind of changes you want to make for 2024. However, you should avoid those resolutions that are eventually going to go out the window. Instead, come up with some changes that can help you long term.

That’s why today, I’m going to focus on creating passive income in 2024. There’s an easy way to make sure this resolution sticks, and by 2025, you’ll be rolling in cash.

First, make it automatic

If you’re going to make some changes when it comes to creating passive income, then the best place to start is by making automated contributions. This can be done through your banking institution, where you set up payments that go directly to your investment portfolio month after month, or even bi-weekly along with your paycheque.

The idea is to see these payments like a bill payment. A bill payment toward your future! Now, of course, you’re going to need a budget to do this. And honestly, even if you made one last year, there have been so many changes this year. So I would look at the last three months and come up with your new budget based on that.

Then, once you go through your essentials, put everything you can reasonably put aside towards your investments. Then, make it tax free.

Put it in a TFSA

The best way to create long-term passive income is by investing in your Tax-Free Savings Account (TFSA). While other savings accounts are great, the TFSA in my opinion is the best. You can create returns and dividends that aren’t taxed by the government. You have plenty of contribution room. And if something happens and you need it all out at once, there will be no questions asked.

The key, of course, is making sure that you stay within your contribution limit. If you were 18 at least in 2009, then as of January 1, 2024 you’ll have a total of $95,000 to invest! That’s plenty of room to create a massive amount of passive income.

Then, you’ll need to find a strong investment. One that is due to rise, and keep on rising for as long as you hold it. Plus, create some strong dividend income along the way. Here’s one to consider.

Loblaw stock

If you’re looking for growth and dividends, Loblaw Companies (TSX:L) is a great choice right now. Loblaw stock has been climbing higher as the market continues to recover. Further, the stock managed to remain strong through a pandemic and even an economic downturn.

Now, it’s looking to recover even more. Shares are back where they were at this time last year, though rising 11% in the last two months alone. There is likely to be even more growth as the economy starts to stabilize, and that could lead to potential dividend increases as well.

For now, Loblaw stock offers a dividend yield at 1.46% as of writing. It trades at a reasonable 19.2 times earnings as well. So let’s say you were to put $15,000 into Loblaw stock and see it continue climbing. Here is how much passive income you could create in 2024.

In just 2024, you could create passive income through $1,120 in returns and $220.72 in dividends. That’s a total of $1,340.72! Reinvest it, and you’ll be looking at a lifetime of strong passive income.