Jun 18, 2024

***5 recession-proof ways to make passive income, according to financial planners 

Story by insider@insider.com (Jen Glantz)

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1. Open a savings account 
While opening a savings account isn't going to net you thousands of dollars in passive income each month, unless you have a ton of money to set aside, financial planner Susannah Snider says it's still worth considering. 

That's because Snider says interest rates have been trending upward, and while the national average interest rate for savings accounts is 0.42%, you may be able to secure a rate north of 5% from a high-yield savings account. 

 

2. Build a real estate portfolio 
Real estate is a passive income stream that also includes tax benefits, and is one that financial planner George Nicola says is worth considering in case a recession happens. 

"The passive income derived from term rents and leases is recession-proof and has a low correlation to market volatility," says Nicola.

While owning real estate can require some active management to maintain high occupancy and ensure the upkeep of the property, you can also consider investing in dividend-generating REITs (real estate investment trusts) as another way of earning passive income.

Related: The best real estate investing apps »

 

3. Invest in self-storage
If you have the cash available and you're looking to take on a new business venture, financial planner Tammy Trenta says it could be a good idea to look into investing in self-storage facilities.

Since recessions might call for people to sell their homes, downsize, or temporarily move to new places, investing in self-storage facilities could not only be a good investment but also a good source of passive income.

You can invest in self-storage facilities in many different ways, whether you want to buy your own facility or invest in specialist REITs that operate a large portfolio of self-storage facilities already.

 

4. Rent out a popular item
One way to start a passive income stream is to look around your house and see what you have that other people are eager to rent.

Financial planner Marli Erickson says that if you have the capital available, you can even consider purchasing an item that is in high demand to be rented. 

"During a recession, individuals do more of their chores themselves that require specific equipment and tools," says Erickson. "Get a utility trailer, as an example. Your investment will be around $2,000 and you can put a photo of the trailer on your Facebook page and put signs on it that it's available for rent." 

In this example, she also advises adding a truck, tools, garden equipment, tents, and sporting goods for a larger inventory.

You can list items that you want to rent to others on a variety of websites like Friend With A or Loanables, and every time the item is booked, you get to pocket the cash. 

 

5. Self-publish books 
If you're someone who enjoys writing or has always wanted to write a book, financial advisor Joseph Hogue says that self-publishing books is a great way to earn passive income during a recession.

"Everyone has a book idea in them," says Hogue.

Once you know what you want to write about, Hogue says it's not only easy to publish the book on your own (using platforms like Amazon Direct Publishing or Barnes and Noble Press), but you can price the book low enough that a recession won't affect people's decision to purchase it. 

While it's not easy to become a best-selling self-published author, Hogue says the benefit of publishing your book and putting it on a book retailer's e-commerce platform (like Amazon, Apple Books, or Barnes and Noble), is that you might get traffic from people searching for books on a daily basis, as opposed to just writing blog posts on your own website (which might only attract a limited and smaller audience).

 

Jan01 2023

***Here are Randstad Canada’s Top 15 Jobs for 2023 and how many workers landing those positions can expect to earn in Canada.

 

1. Developer (NOC 21232)

Businesses accelerated their plans for digital projects during the pandemic and fuelled a huge spike in demand for tech talent.

“Developers now work at various organizations, from small and medium-sized businesses to large corporations and governments,” notes Randstad Canada on its website.

Developers can expect to earn $68,000 to $155,000 based on the position’s level.

 

2. HR Manager (NOC 10011)

Finding the right people for jobs during a labour shortage means the first step for many businesses is getting a good human resources manager to make those decisions.

“In the post-pandemic world, businesses face many challenges, such as budget constraints, looming skills gaps, and worker expectation shifts,” notes Randstad Canada. “HR managers help enterprises face those challenges and adopt new workplace practices that include remote and hybrid work options.”

Human resources managers can expect to earn $75,000 to $156,000.

 

3. Mechanical Engineer (NOC 21301)

Growth in the renewable energy sector is driving demand in Canada for mechanical engineers who are also sought out by employers in other STEM industries, including aerospace, automotive, manufacturing, and biomedical.

Mechanical engineers in Canada make between $66,000 to $131,000.

 

4. Welder (NOC 72106)

Retiring Baby Boomers who are licensed tradespeople are leaving a gap in the labour force and there are too few young workers to replace them.

With that shortage of welders, these workers can command salaries from $40,000 to $74,000.

 

5. Accounting Technician/Bookkeeper (NOC 12200)

“Despite an influx of new workers in the accounting sector, there is still a significant need for accountants,” notes Randstad. “Accounting is so in demand that it is a part of the Canadian immigration Express Entry system.”

Accounting technicians and bookkeepers in Canada earn from $61,000 to $114,000 annually.

 

6. Registered Nurse (NOC 31301)

Every province in Canada is screaming for more registered nurses, one of the most in-demand occupations in the country. Many provinces are currently putting in place improved processes to speed up foreign credential recognition for internationally-trained nurses.

Registered nurses in Canada make between $68,000 and $94,000 annually based on the position’s level.

 

7. Warehouse Worker (NOC 75101)

The demand for goods in Canada is high which means there is also a demand for talent across the supply chain with the most significant gap being warehouse workers, notes Randstad Canada.

“With the high demand, many job opportunities are available for both skilled and unskilled workers,” notes the human resources company.

Warehouse workers earn from $17 to $29/hour, or from $33,150 to $56,550 per year based on a standard, 37.5-hour work week.

 

8. Customer Service Representative (NOC 64409) (NOC 64400)

“Today’s customer service professionals must be able to work from home, be tech-savvy enough to use the company software platforms (including communication and customer relationship management systems), and be flexible enough to provide each customer with a personalized experience,” notes Randstad Canada.

These service professionals make between $43,000 and $74,000 annually.

 

9. Driver (NOC 73300) (NOC 73301) (NOC 74102)

Online shopping’s surge in popularity during the pandemic has not abated with the re-opening of stores as public health restrictions eased.

That’s led to a serious labour shortage for truckers and drivers to meet and overcome this supply chain nightmare.

Drivers earn between $42,000 and $65,000 annually based on their position.

 

10. Sales Associate (NOC 263102) (NOC 64100)

“A good sales associate can make a business successful,” notes Randstad Canada.

“During the pandemic, when many retail and hospitality locations were closed, many former associates found new jobs, and now stores and the hospitality sector are back up and running with a new increase in demand.”

Sales associates make from $46,000 to $84,000 in Canada.

 

11. Administrative Assistant (NOC 13110) (NOC 13111) (NOC 13112)

The responsibilities of these people, who take care of the myriad of tasks and details needed to keep the offices of businesses humming, have greatly expanded and become much more high-tech over the years.

Today, as ever, they are in hot demand.

Their annual compensation ranges from $47,000 to $99,000 based on the position’s level.

 

12. Business Analyst (NOC 21221)

With computer technology making it ever more possible to use big data to boost the profitability of businesses, the role of the business analyst has taken on even more importance in fueling business growth.

Business analysts earn between $62,000 and $142,000.

 

13. Production Supervisor (NOC 72010) (NOC 72022) (NOC 82010) (NOC 92012) (NOC 92021) (NOC 92024)

“With the vast increase in demand for online deliveries, reduced delivery cycles, a never-before competitive market, and reduced margins with ever-increasing customer demand, it’s no wonder why production supervisors are in demand,” notes Randstad Canada.

Production supervisors earn from $53,000 to $114,000.

 

14. Digital Marketing Coordinator (NOC 11202)

Digital marketing coordinators used to work almost exclusively for marketing agencies.

But that was then.

“With the rise of e-commerce, almost every company now requires a digital marketing coordinator on their team to help with critical projects,” notes Randstad Canada.

These marketing experts make from $62,000 to $122,000 annually.

 

15. Construction Project Manager (NOC 70010)

“Construction project managers are required for the construction sector primarily to help facilitate the massive housing boom that continues to take place across Canada,” notes Randstad Canada.

These project managers earn from $61,000 to $150,000 annually.

Tags: Canada jobs, Randstad Canada, work in canada