Yahoo Finance New Investors: Make $626/Month Tax Free Even With $0 Down!
Written by Amy Legate-Wolfe at The Motley Fool Canada
Investors looking to create cash flow through investing have come to the right place. Now to be clear, I’m not suggesting there is some magic word that allows you to start claiming tax-free income. However, there are steps you can take to create cash flow and use it to invest. This can create major passive income each and every month.
Create a secondary source of income for free
If you don’t have enough cash on hand to start investing, don’t suddenly start using the funds you have to invest in the stock market. You need that income to pay bills, debt, and other payments throughout the year. This is also why you don’t want to try a side hustle.
A side hustle is a part-time job; that’s all it is. But what’s worse, it’s a job that’s taking away from the focus of your full-time job. So, what future investors need to find is a passive-income stream that offers zero payment and minimum effort. It sounds impossible, right?
Wrong. There are a few options! You could rent out a space for storage. Or you could place advertisements on your car through car advertisement programs. These two options together could bring in $600 per month combined with very minimal effort! And at no cost.
Invest in high-yield passive income
Now you’re ready to start investing! And without using any of your own money. The goal here is to create even more income monthly. That limits your choices to monthly passive-income providers, but there are still many of these on the market.
A great option would be to consider essential companies with a long history of dividend payouts. These include real estate investment trusts (REITs). A great option then for essential monthly dividend income could be Granite REIT (TSX:GRT.UN).
Granite REIT provides the essentials of industrial properties. Industrial properties are needed for storage, assembly, and other essentials. Plus, they’re in high demand, so you’re looking at years of stable income from a company such as Granite REIT.
Creating long-term income
Now you’ve got about $600 coming in each month and use it to put towards a stock yielding 4.3% as of writing. If you save up for a year and decide to put it all in at once, here is what that could look like from a $7,200 investment.
COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (ANNUAL) | TOTAL PAYOUT (ANNUAL) | FREQUENCY |
GRT.UN | $74 | 97 | $3.20 | $310.40 | Monthly |
Now you’re at a total of $7,510.40 for the year! Dished out on a monthly basis, you’ll be making $625.88 each and every month from passive income. Place it in a Tax-Free Savings Account (TFSA), and that passive income is all tax free!
Altogether, you’ve created a stream of passive income that hasn’t cost you a dime. Simply rent out a storage shed or place some advertisements on your vehicle. Invest in a dividend stock again and again, and you’ll soon be looking at tax-free income that you can use forever without putting your job at risk.
The post New Investors: Make $626/Month Tax Free Even With $0 Down! appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.
2023
