With the cost of living climbing steadily, you may be looking for ways to earn more money in Canada. Whether you’re looking for a full-time job with a higher salary, a lucrative side hustle, or a part-time gig, this article is packed with practical advice on making more money and securing financial freedom.
Let’s dig in!
Strategy #1: Invest in the Stock Market
Investing in the stock market can be a great way to earn passive income in Canada while setting yourself up for long-term financial security. Depending on the types of stocks you purchase, you can earn dividends or interest on your investments.
Of course, you need to have extra cash on hand to put toward your investments. Sinking all your extra money into the stock market is not advisable, as you need liquid cash for day-to-day expenses and emergencies. Ensure you keep an emergency fund separate from your investment accounts in case you need cash in a pinch.
Investing in the stock market is a long game. You likely won’t earn much in the short term, but one of the primary benefits of investing in the stock market is that your returns will compound over time, leaving you with a healthy and growing portfolio.
Different Investment Opportunities in Canada
There are many ways to start investing in Canada. You might use robo-advisors or automated investing platforms to direct your investments. Or, you can work with a stock broker to identify investment opportunities that will serve your long-term goals. You can also try your hand at self-directed investing to avoid paying fees to third parties for managing your accounts.
However you manage your investments, the following are some popular investment opportunities in Canada:
Exchange-traded Funds (ETFs) are pooled securities that trade on a stock exchange. They may hold many types of investments, including bonds, commodities, stocks, or a mix of these. As a result, they’re more diverse than purchasing stock in a single company, which may reduce the risk of losses.
A Guaranteed Investment Certificate (GIC) is an investment that yields a fixed rate of return. They are available for purchase through banks and trusts. Once you purchase a GIC, your money is tied up for the duration of the GIC term (usually 1 to 5 years). GICs are insured by the organizations that sell them and yield a fixed rate of return, making them a low-risk investment.
When you purchase a dividend stock, you buy a tiny share of a company. When the company makes a profit, they’ll share it with stockholders through dividend payments. Dividends are paid periodically throughout the year (usually monthly, quarterly, or annually, depending on the company). The amount you receive in dividends is related to the quantity of stocks you hold– the more shares you own, the more you’ll earn.
Bonds are a low-risk investment option in which you’re essentially lending money to a company, which they will eventually pay back at face value. Bonds yield returns in the form of interest. Bonds have a fixed maturity rate, which refers to the date you can expect to see your investment returned, but you can sell them early if you wish.
There is a lot to know about public market investing. Take time to educate yourself or work with an experienced professional to develop an investment strategy that supports your long-term financial goals.
Strategy #2: Set Up a Side Hustle
Many Canadians pick up a side job to earn additional income on top of their day job. You can capitalize on your previous experience, existing skills, and personal interests to earn money in your spare time.
Popular Side Hustles in Canada
The sky's the limit when it comes to developing a side hustle. You can earn money online or start a side business out of your home. Here are some side hustle ideas to get you started:
Start a personal brand
A blog, YouTube channel, or Instagram account is a popular way to develop a personal brand as a digital creator. Many creators start platforms to explore personal interests such as interior design, bullet journaling, reading, food, or travel. Once you’ve built an audience, you can earn money through affiliate marketing, brand partnerships, digital products, and ad revenue.
Become a virtual assistant
If you’re tech-savvy or have basic admin skills, you could work as a virtual assistant (or VA). VAs may offer support for everything from email management to data entry and appointment scheduling. Some specialize in specific areas such as graphic design, website management, or customer support.
Fill out surveys online
Companies rely on market research to position their products and services, and online surveys are a popular way to gather data. Sites like Survey Junkie and Swagbucks will pay Canadians to complete surveys online.
Cleaning houses can be a lucrative way to earn money in your spare time. If you live in a touristic city, you can likely pick up cleaning gigs for vacation rentals in your area during high season. Otherwise, you can offer weekly cleaning services for busy families or work with property management companies to dodeep cleaning when tenants move out of their rental units.
Furniture restoration and repair
Repairing and restoring used furniture could be a great side hustle if you enjoy working with your hands. Pick up used items from garage sales or Facebook Marketplace, spruce them up, and resell them for a profit!
Lawn care and landscaping
If you enjoy working outside, market your services in lawn care or landscaping. Many homeowners have yards that they don’t have time to maintain. Helping out with weeding and lawn mowing is a great way to earn extra cash.
Advantages and Disadvantages of Side Hustles
Starting a side hustle can be a fun way to bring in extra money each month, but they have some disadvantages, too. Here’s a look at the pros and cons of side hustles.
- They’re often flexible regarding scheduling and time commitments.
- You may be able to scale your side hustle into full-time work.
- The second income stream offers peace of mind if you’re concerned about lay offs or reduced hours in your primary job.
- Your side hustle may be fun and fulfilling.
- May be unreliable in terms of income.
- You risk becoming burned out because you’re working so much.
- Some side hustles may require purchasing special equipment or tech tools out of pocket.
Strategy #3: Get a Second Job
For some, picking up a second job may be preferable to starting a side hustle. You could choose something within your current field of work or use a second job as an opportunity to pursue an area of interest. If you live somewhere with seasonal tourism, it could be fun to capitalize on that by picking up a second job related to something you love, such as ski instructing or working as a kayak guide.
The holiday season is a great time to pick up another job. Retail businesses often hire seasonal employees to help out during the shopping season.
Types of Second Jobs Available in Canada
The opportunities for second jobs are endless, but here are a few ideas to get you started. Many of these roles offer flexible shifts, making it easier to work them around your primary job.
- Winter resort work, such as a chair lift operator or ski instructor
- Summer resort work, including tour guides, surf instructors, and administrative roles
- Retail jobs
- Grocery store cashier
- Bartender or food service roles
- At-home customer support roles
- Joining a casual labour board for your municipality or local health services
Pros and Cons of Working a Second Job
Before you take on another role, ensure you consider the pros and cons of having a second job.
- Additional income each month.
- Offers the opportunity to expand your experience and try something new.
- Could be challenging to schedule around your primary position.
- Could eat into your family time and rest, leaving you feeling burnt out.
Strategy #4: Find Opportunities in the Sharing Economy
The sharing economy enables Canadians to earn money through peer-to-peer sharing of assets or services. Uber and Airbnb are two of the most popular sharing economy platforms, but they are just the tip of the iceberg.
Here are some other examples of sharing economy opportunities in Canada:
- Drive for a food delivery service like Doordash or Skip the Dishes
- Rent out your car on Turo
- Act as a personal shopper on Instacart
- Work as a pet sitter through Rover
- Pickup freelance work through a platform like Fiverr or UpWork
Pros and Cons of Participating in the Sharing Economy
The sharing economy makes it easy to earn extra money quickly, but there are downsides, too. Here’s a look at some of the pros and cons of this type of income.
- There’s a low barrier to entry. You can usually get started within a couple of days.
- Most gigs are flexible in terms of scheduling, making it easy to work around other commitments. You can work when you want to.
- Wages may be low. Sharing economy jobs like driving for Uber or acting as a delivery driver typically yield low rates when calculated hourly. On some platforms (such as Airbnb or Rover), you have more control over what you earn.
- Income may be inconsistent. There’s no way to predict when someone will book your Airbnb or if you’ll get many Uber fares, making it difficult to rely on this income.
There are all kinds of ways you can earn more money in Canada, whether by picking up a second job, starting a side hustle, leveraging the sharing economy, or investing in the stock market. Getting started may require some effort, but establishing an additional income source can relieve financial stress by helping you tackle debt or build an emergency fund. Plus, it can be a great way to expand your skill set or test new career paths!