Money never sleeps—and wealthy Canadians know exactly how to make their dollars work around the clock. While most people earn money only during working hours, the rich have mastered strategies that generate income 24/7, building wealth even while they rest. The good news is that these wealth-building techniques aren’t just for the ultra-wealthy anymore.
Thanks to modern technology and investment platforms, many of these money-making methods are now accessible to average Canadians looking to create additional income streams. Here are 15 proven ways that wealthy people keep growing their money day and night, and how anyone can start using similar strategies to build long-term wealth.
Dividend Stocks
Wealthy investors load up on shares of stable Canadian companies that pay regular dividends. Companies like major banks and utility providers distribute profits to shareholders several times per year. These dividend payments arrive automatically, requiring no extra work once the initial investment is made. Top dividend-paying stocks on the Toronto Stock Exchange have historically provided steady income even during market downturns.
Rental Properties
Successful property investors collect monthly rent payments while their properties typically increase in value over time. Professional property managers handle day-to-day operations, making this truly passive income. Many wealthy Canadians focus on properties near universities or in growing urban areas. Good rental properties can generate returns through both monthly cash flow and long-term appreciation.
Automated High-Interest Savings
Digital banks offer significantly higher interest rates than traditional brick-and-mortar institutions. Money in these accounts earns interest every single day, with the earnings automatically added to the balance. Some online banks compound interest daily rather than monthly, maximizing the growth potential. Current high-interest savings accounts in Canada can earn up to 3-5% annually with zero risk.
Index Fund Investing
Broad market index funds automatically track entire segments of the stock market. These funds provide instant diversification and typically grow in value over long periods. Many index funds pay quarterly dividends from the profits of their underlying companies. The extremely low fees of index funds help investors keep more of their returns.
Real Estate Investment Trusts (REITs)
REITs allow investors to earn money from real estate without directly owning properties. Canadian REITs collect rent from office buildings, apartments, and shopping centers, then distribute the profits to investors monthly. Many REITs trade on the stock exchange, making them as easy to buy as regular stocks. The general yield of a diversified portfolio of Canadian public REITs typically averages around 8.61% annually.
Bond Ladders
Smart investors create bond portfolios with staggered maturity dates to provide regular interest payments. Government and corporate bonds offer predetermined interest rates and return of principal at maturity. Bond ladders can be structured to provide monthly income while maintaining relatively low risk. This strategy works particularly well in high interest rate environments.
Robo-Advisors
These digital investment platforms automatically manage and rebalance investment portfolios. Canadian robo-advisors use sophisticated algorithms to adjust investments based on market conditions and goals. The technology works continuously to optimize returns while keeping fees much lower than traditional financial advisors. Many robo-advisors require no account minimum to start and handle everything from tax optimization to dividend reinvestment.
Peer-to-Peer Lending
Online platforms connect investors with borrowers seeking loans, generating monthly interest payments. Canadian P2P lending can offer returns significantly higher than traditional fixed-income investments. The automated systems handle all payment collection and distribution to lenders. Diversifying across many small loans helps manage risk while maintaining steady returns.
Private Mortgage Investing
Wealthy individuals lend money to real estate buyers through private mortgages at higher interest rates than banks. Monthly mortgage payments provide steady income while the loan is secured by real property. Private mortgage investment corporations pool money from multiple investors to spread risk. Returns typically range from 6-16% annually.
Royalty Income Funds
These specialized investments collect payments from natural resource companies or intellectual property. Canadian royalty funds often focus on mining, oil, or entertainment rights. The payments continue as long as the underlying assets generate revenue. Some royalty funds pay monthly distributions with yields over 5%.
Turnkey E-commerce
Wealthy individuals also invest in online stores with steady sales and loyal customers. Managed by specialized teams, these businesses handle stocking, customer service, and order fulfillment around the clock. Generating income 24/7, online stores allow customers to shop at any hour. Successful investors seek stores with strong brands, reliable suppliers, and experienced managers who consistently drive sales growth.
Covered Call Options
Sophisticated investors earn extra income by selling call options against stocks they own. This strategy generates immediate cash from option premiums while still allowing for potential stock gains. The process can be automated through specialized brokers or investment funds. Covered calls can add 5-10% additional annual income to a stock portfolio.
Commercial Property Syndication
Groups of investors pool money to buy large commercial properties through syndication deals. Professional teams handle all aspects of property management and tenant relations. Investors receive quarterly distributions from rental income and property appreciation. Commercial properties often provide more stable returns than residential real estate.
Automated Cryptocurrency Staking
Digital assets can be staked on blockchain networks to help validate transactions, generating regular rewards for participants. The staking process runs automatically once coins are committed to the network, similar to earning interest in a savings account. While cryptocurrency remains a volatile investment, staking provides a way to earn passive rewards from held digital assets.
Dividend Reinvestment Plans (DRIPs)
DRIPs automatically use dividend payments to buy more shares of the paying company. This compounds returns by increasing the number of shares earning future dividends. Many Canadian blue-chip companies offer DRIPs directly to shareholders at no cost. Over decades, dividend reinvestment can significantly multiply investment returns through the power of compounding.
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