Creating passive income is a popular goal among Canadian investors seeking financial independence or supplemental earnings. While it requires initial effort or capital, passive income can provide long-term stability and freedom.

1. Rental Properties Real estate remains a top passive income strategy. High-demand cities such as Calgary, Halifax, and Ottawa offer attractive rental yields. Hiring a property manager can make this option more hands-off.

2. Dividend Investing Building a portfolio of blue-chip, dividend-paying stocks is a reliable way to generate income. Using tax-advantaged accounts like a TFSA increases efficiency.

3. REITs (Real Estate Investment Trusts) For those who prefer not to own physical property, REITs offer exposure to real estate markets and pay out regular dividends.

4. Peer-to-Peer Lending Online lending platforms allow investors to earn interest by financing loans to individuals or small businesses. While riskier, returns can be higher than traditional fixed-income products.

5. Business Ownership or Royalties Owning a small business, franchise, or intellectual property (e.g., books, apps) can generate ongoing revenue without daily involvement.

Diversification is key. Experts recommend combining several strategies and reinvesting a portion of the income to grow wealth over time.