3 Passive Income Streams That Actually Work

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Right now is a time that Canadians desperately need cash on hand. Especially if you’ve been investing in the market over the last few years. The TSX today is now near 52-week lows, marking a significant drop from its highs at $22,213 earlier in the year.

So let’s look at some simple, easy, and effective ways of bringing in passive income. Ones that actually work.

Make your car work for you

Your car may not be an investment, but it certainly can be an asset. Not through selling it to bring in a bunch of cash, but by using it. This can be achieved in multiple ways. A car can be used to display advertisements, some of which offer up to $300 per month from companies! This will depend on how large the car is, but then you’ll get paid for simply driving around and going about your day.

Another way to use your car is to rent it out through applications such as Turo. This app allows you to rent the car out when you’re not using it. Of course, this will come with an increase of insurance, so make sure to do your homework before taking this strategy on.

Then there’s the parking itself. If you’re driving elsewhere yet live in a city, there’s likely someone nearby who would love a discounted monthly parking spot. So consider offering yours up, whether it’s your driveway or your apartment garage. Again, you could earn hundreds each and every month!

Use what you have

Speaking of parking spots, this brings up the other tried-and-true method of bringing in passive income. You can simply rent out what you have! And don’t limit yourself. Whether its your lawnmower, ladder, or even your shed for a local business, all of it can bring in cash.

In fact, if you have a few dollars to spare, you could even research some in-demand items locally and rent those out as well. This could include bounce houses, blow up decorations, even Christmas lights! These can be rented out and brought back into use for another year, allowing consumers to use them and not take up storage space.

Again, all these methods could bring in hundreds of dollars in passive income each and every month. But there’s another tried-and-true method, even in this economy.

Get investing

Now I know I was just discussing this volatile market. Yet if you’re investing in strong companies such as Canadian financial institutions or utilities, then you shouldn’t worry. In fact, you should celebrate! Consider these stocks as on sale. And when they’re on sale, you should be buying in bulk.

A great option would be picking up a passive income stock such as Toronto Dominion Bank (TSX:TD). TD stock has large exposure to the United States, which historically has bounced back far sooner than Canada. This should allow TD stock to bounce back sooner as well.

Meanwhile, you can pick up TD stock with a dividend yield at 4.96%. That’s far higher than the five-year average of 4.05%. Furthermore, shares are down 11% in the last year as of writing. But TD stock has bounced back to 52-week highs within a year of hitting 52-week lows during downturns. So I would certainly pick it up, hold it, and enjoy the large passive income stream while it lasts.

The post 3 Passive Income Streams That Actually Work appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.