How to Turn $0 Into $10,089.98 in Passive Income in 2024

Canadians across the country are getting pretty fed up. The market continues to be above or below the $21,000 mark on the TSX today. Interest rates are still at 5%, with no cuts looking likely until the summer. Inflation actually rose in December, rather than dropping even more.

So, it’s no wonder many continue to look for ways to create passive income. After all, 2023 was the year of cuts. You’ve cut back your spending. You’re shopping at discount retailers. And that was great, but … now what?

Finding the right passive-income stream

It’s all well and good to say, “Hey, just starting investing!” But what if you’ve been cutting back and really don’t have any money to invest? Your cash is going towards food, bills, and all the other essentials of life. You want to invest, but you don’t have a dime to do it with.

That’s where a passive-income stream can certainly help. The thing is, you definitely don’t want an option that does three things. First, it cannot be risky. There is no point in putting aside money towards a passive-income stream that could make you lose money. I would put things like drop shipping into this category, where you need to spend to buy products you merely hope will sell.

Then there’s the fact you don’t want to spend money in the first place. So, your passive-income stream should ideally cost you absolutely nothing to start up. Finally, you want a passive-income stream that doesn’t take away from your day job. Or else, that’s just another job. So, here is one that should help you get started.

Rent what you own

I’ve said this several times over throughout the last year, but renting what you already have on hand is the easiest and most lucrative way to create passive income. If you’re new to this, there are many applications to help you get started. And you can start small, adding more items as you go.

For instance, let’s say you start just by renting out your parking spot. That’s easy, not inside your home, takes little effort and can bring in even $300 per month depending on where you live. You then choose to rent out a storage space, such as a shed or apartment storage area. This can be great for small businesses looking to save cash and can bring yet another $300, let’s say. You then rent out items. This can be anything from a snowblower to a lawnmower and can be a few bucks per rental.

Now, you have passive income coming in, and all you’re doing is providing space and items you already have. Granted, there is set-up through online applications, and you may need insurance. But this doesn’t cost you anything and can be a huge payout. In fact, if you got $300 from parking, $300 from a shed, and $100 from items, that’s $700 a month!

Then invest it

If you’re really pinching pennies, then the first place I would put cash is in a Guaranteed Investment Certificate (GIC). The GIC rates are too good to pass up at 5%, and will only come down when interest rates drop as well. But when they do, there are other options to consider.

For example, if you’re fearful about investing, then I would look to iShares Canadian Financial Monthly Income ETF (TSX:FIE). This provides you with a monthly dividend for passive income. It can be used to put right back into the stock if you choose! In fact, here is what $700 per month, or $8,400 per year, could turn into.

Now, in about a year, you could go from $0 in passive income to $9,501.50 in returns and $588.48 in dividends. That’s total passive income of $10,089.98! It all adds up without costing you a dime.