We’ve heard that creating passive income allows us to work less and enjoy financial freedom, but how do you come up with passive income ideas that can be implemented in the UK? Whether you have a lot of money to invest (such as buying a rental property) or you’re starting with nothing at all, I’ve put together a list of ideas for generating passive income in the UK.
What is passive income?
Passive income is income that you do not work for directly, or you do the work once and continue to get paid. It’s money you earn while you’re away from active work – perhaps sleeping, vacationing, or something else entirely.
Creating passive income means putting in hard work now To reap the benefits Later.
Nothing beats the feeling of receiving an email saying I’ve made an affiliate sale to earn £30, or selling a digital product overnight. I love making passive income and in this post I have lots of passive income ideas to share with you – whether you’re starting out with no budget at all, or have money to invest In companies like PrimericaOr American Electric Power or other leading brands, or you have an idea for a business. Get started today, and you may be able to generate passive income very soon!
How long does it take to make passive income in the UK?
Depending on how you decide to make passive income, you can start making money almost immediately!
Different methods of passive income will take different amounts of time to start generating income. For example, purchasing a rental property requires a lot of capital to get started, a few months to complete the sale, and then time to prepare the property before advertising it for rent. Add a few more weeks to find tenants and the time really adds up.
Or if you were to list digital products on Etsy and get a sale the next day, you would generate passive income much faster.
There are no quick fixes when it comes to making passive income, and you will need to put in time and effort at the beginning to reap the rewards. However, by generating passive income, you can begin to experience financial freedom and the ability to work when you want to work and spend your life doing what you want to do.
I will share with you some of the best passive income ideas in the UK.
Blogging for Passive Income – Low Investment
Blogging is my biggest source of passive income, from affiliate marketing, advertising, and selling digital courses and eBooks.
I’ve been able to turn my passion for helping others with their money into a decent enough income to employ my husband full time and work with a small team of freelancers.
It’s fair to say that blogging has changed my life (Here’s how you can start a blog).
There are many ways to effectively monetize my blog – for example, writing new blog posts and sponsored content takes time, as does posting on social media.
If I were to step away from my blog for a few days, weeks, or even months, I would continue to passively generate income from the ads you see on my blog, from Affiliate links I have placed on my blog It is selling any of my digital courses and e-books.
Blogging for passive income has a low financial investment, but you will be investing your time in order to generate passive income.
Rental properties – high investment
When most of us think of generating passive income, we immediately think of owning a rental property to generate passive income from monthly rent.
Real estate investing is out of the question for many of us due to the high cost associated with purchasing a rental property. Not only will you need to have a buy to let mortgage (which typically requires a 25% deposit) and need to pay stamp duty, there may be a lot of work and repairs being done to pay for it.
Remember, this may also increase the stamp duty you have to pay on your main residence if you purchase a second property. If you own a rental property, you will need to pay an additional stamp duty based on the price of the residential property you purchase. This can be quite a deterrent to choosing to invest in passive income properties in the UK.
An added advantage of real estate investing is that there is the potential for capital appreciation over time. There too Real estate tax incentives For real estate investors. You should also consider investing in real estate with electric car chargers. By taking advantage of different Electric vehicle charging solutionsYou can generate passive income by attracting EV drivers to your property.
Investing in real estate is not something we rush into.
Saving – any investment
Well…listen to me.
I know interest rates on savings right now are terrible, but it’s still money for nothing and passive income.
Most bank and savings accounts will offer interest on the balance, and depending on which account you have, you can still easily access your money.
There are some better ways to save for long-term things (like investing), but if you don’t want to risk putting your principal at risk, a regular savings account could be right for you, and help you generate passive income.
Investment and profits – any investment
Investments can earn you passive income from interest and/or dividend payments. Of course, your capital is at risk with investments and their value may rise or fall, which is why they should be considered long-term investments.
We have ISAs with Nutmeg and Wealthify (you can read more about where we save and invest our money) and we also use FreeTrade and Stake to buy stocks and individual shares.
Most of them offer free money offers.
YouTube – Free to get started
When it comes to passive income ideas, YouTube can be a really great idea!
By creating videos on a wide range of topics, your videos can be monetized through display ads once you reach 1,000 subscribers and 4,000 minutes of watch time.
You can create videos on any number of topics including:
- Daily vlogs
- Recipes
- beauty
- Play (let’s play)
- He travels
- Mindfulness
- Affirmations
- Birthday videos
And much more. You should consider creating your own group of Affirmations Also, to help you succeed!
One of my first clients when I started freelancing created a channel based on Christmas videos:
Affirmation videos are very popular, with this one having over 7 million views:
A friend of mine is trying a new channel:
Creating YouTube videos is free, but if you want to outsource it, you can Buy videos on Fiverr. Read more: How to start an anonymous scary stories YouTube channel.
Writing a Book – Zero to Low Investment
It’s been said that many of us have a book inside us, and these days we don’t even need to have a publishing deal to start making money from the books we’ve written.
I personally have an e-book available on Amazon called 50 iPhone Apps to Earn Moneyand another e-book hosted on my website called 90 days to a profitable blog.
A book can be created on almost every topic, which means you can easily turn your passion into a profitable e-book, or write novels or poetry.
My books are able to bring me passive income every month – and even more income when I spend time promoting them.
There is no cost associated with writing your eBook, but you will want to pay for things like your front cover design and proofreader.
Creating e-courses – no investment
If there’s a topic you know a lot about, developing an eCourse is a great way to generate passive income.
Not only can you help teach others, but you can create a new passive income stream for yourself.
One of the best courses I invested in was Elite Blog Academy which was quite expensive, but so far worth every penny. Not only does Ruth help me improve my blog and generate more revenue, but she also earns an income herself by running the course.
I have also created some of my own courses at different price points which allows me to make passive income.
Print on demand – no investment
Print on demand is exactly as it sounds. Instead of holding a lot of inventory like t-shirts and mugs, you can create the design all at once and use a print-on-demand service like Red bubble To host your products.
When someone comes in to make a purchase, RedBubble will take care of everything — allowing the buyer to choose the product, color, and size for shipping.
You will then receive a commission for every sale you make.
If you are able to jump on a popular trend and spend some time creating designs, you can start making passive income with print on demand in a very short time and with no expenses.
Drop Shipping – Low Investment
Drop Shipping is another passive income stream that gets me very excited because I love e-commerce but lack the space to store a lot of inventory and the capital to buy a lot of stock.
Drop shipping, quite simply, is where you sell something on your platform/website, and then once it’s sold, you buy it somewhere else and then it’s delivered directly to the customer.
Prepare your Drop shipping The store is free, but where you need to make a small investment is in the time that elapses between a customer making a purchase and you getting paid for the purchase. You will need to purchase the product and deliver it to the customer.
There are many ways to do this, from finding suppliers in China to finding… UK based shipping company. There are also tools you can use to completely automate this process once you set it up, so it can truly become a passive source of income.
Digital Products and Downloads – Free to get started
Are you a spreadsheet pro? Or maybe you can create some printables? If you can create a downloadable product that’s in demand, you can set up an automated process where a buyer buys your product and then receives a digital copy once they’ve paid.
Your investment here is your time – the time it takes to create a great spreadsheet, printables, or anything else that serves a purpose.
You can then sell them on Etsy (this link gives you 40 free listings) or through your own website.
Some ideas include:
- Data tables
- Meal planners
- Planners
- Wall art
- prints
Fulfilled by Amazon – Low to medium investment
When it comes to thinking about passive income, I wasn’t sure if I was going to include “Fulfilled by Amazon,” but I decided to include it because you only need to buy the products and send them to Amazon, and Amazon handles everything else.
I have a whole guide to selling with Fulfilled By Amazon, but the idea is really simple. You can buy products elsewhere and sell them on Amazon for more money.
With Fulfilled by Amazon, you pay around £5 to send a box of goods weighing up to 15kg to Amazon, and they handle the selling and shipping for you.
Cashback Credit Card – No Investment
It’s fair to say that I love our cash back credit card (MBNA Horizons).
We do all our shopping using our cashback credit card (and you can even pay your council tax with the credit card) and pay it off in full every month.
Last year we earned over £200 just through our usual shopping!
AirTime Rewards – No investment
Another great way to make passive income is to use the AirTime Rewards app.
Connect all your bank cards to AirTime Rewards and when you make purchases at participating retailers, you’ll earn cash back.
The cashback earned cannot be withdrawn, instead it must be applied to your phone bill, however it is literally free money.
Enter my promo code to get the reward: 8QJJJJ36
Are you looking for more ways to make money online? Enter your name and email address below to be sent a free copy of my book ’10 Ways to Make £1,000 in the Next 30 Days’.
If you live in the UK, earning passive income is definitely possible!