Back in the old days, earning money was all about sitting down at an office job and cracking on with work, but times have since changed a lot. Today, there are all sorts of opportunities to earn passive income, which involves putting in a lot of upfront effort but then sitting back and watching your hard work flow into your bank in the form of cash. If this sounds like a dream to you, we’re here to help you get started–here is a list of passive income ideas that you can start today.
Rent Out a Room in Your Home
This first passive income idea is one of the most lucrative, but you’ll first need to own a property. If you do, and you’ve got a spare room, renting it out can bring in a steady income. Under the UK’s Rent-a-Room scheme, you can earn up to £7,500 a year tax-free. Furthermore, putting your entire apartment up for rent can be even more lucrative, or you could use platforms such as SpareRoom and Airbnb, making it easy to find lodgers or short-term guests.
Sell Stock Photos
If you’ve got an eye for photography, you should check out platforms such as Alamy or Shutterstock, which allow you to upload and sell your snaps as stock imagery. Every download earns you a percentage of the sale, and popular images can generate income for years. Regardless of what kind of photograph you enjoy, put in some up-front effort to create some snaps that people will love, and watch the earnings hit your bank account in the long run.
Write an eBook
Regardless of whether you love writing fiction or have expertise to share, publishing an eBook can be a great earner for writers. Unlike in the old days, platforms like Amazon Kindle Direct Publishing make it simple to get started, and once your book is live, it can sell to readers worldwide with little ongoing effort.
Create an Online Course
As an alternative to writing an eBook, you could package your knowledge on a subject into an online course, which could bring in significant passive income. Websites like Teachable and Udemy allow you to share your expertise and earn each time someone enrols. In particular, covering popular topics like personal finance, DIY skills, or fitness can attract a wide audience.
Invest in Dividend Stocks
When you have a decent chunk of savings, this can lay the roots for some serious passive income. For example, you could invest your money into dividend-paying shares, which often provide regular payouts. UK companies like Unilever and HSBC are known for consistent dividends, but there are all sorts of companies to consider. Start small, balance risk, and reinvest your earnings to grow your portfolio over time.
Peer-to-Peer Lending
These days, lending money to others has never been easier, especially through peer-to-peer online platforms. Amazingly, these can yield returns higher than traditional savings accounts, especially through websites like Zopa and Funding Circle. They’ll connect you with borrowers and allow you to earn interest on your funds; just make sure you assess the potential risks involved first and start with smaller amounts if you’re new to this.
Licence Your Music or Artwork
If you’re a musician, artist, or designer, licensing your work can bring in passive income. Upload tracks to platforms like AudioJungle or sell designs through Redbubble, and each time someone purchases or uses your creation, you earn. Popular pieces can continue to generate income long after they’re created, so it’s the ideal form of passive income for a creative person.
Rent Out Your Car
If your car spends a lot of time parked, consider renting it out through platforms like Turo. Short-term rentals can earn you extra cash without much effort, especially if you live near an airport or city centre, where demand for vehicles is higher. Even if your car only gets rented out occasionally, it will still likely earn you enough to cover your road tax and insurance.
Offer Affiliate Marketing
A lot of people get into affiliate marketing to generate passive income, achieved through starting a blog, YouTube channel, or social media page. Essentially, this involves recommending products and services to your audience, and you’ll earn a commission on any sales made through your links. Companies like Amazon and ShareASale offer affiliate programmes that are easy to join, so the frameworks are already there for you to get started.
Invest in Property
Contrary to popular belief, property investment doesn’t have to mean buying entire houses. In fact, you can actually invest in fractional ownership of properties, which allows you to earn rental income and potentially benefit from property value increases without needing a huge deposit. Best of all, the income from this could help you secure a place on the property ladder!
Start a Dropshipping Business
Unlike in the old days, selling products online no longer requires you to have your own warehouse storage space and infrastructure. By running a dropshipping business, you can sell products without holding inventory. Particularly popular platforms include Shopify, enabling you to set up a store and connect with suppliers who handle stock and shipping. Ultimately, your main role will be marketing, making it a flexible option for creating passive income.
Rent Out Equipment
There are so many Brits out there who have tools, cameras, audio equipment, or even garden furniture that are just sitting there gathering dust. This is a missed opportunity, as all of this equipment could be rented out to others through websites like Fat Llama. It’s an easy way to monetise belongings that might otherwise just sit there doing nothing, so you’ve got nothing to lose.
Build an App
Another passive income idea is building an app, although you’ll need some serious coding and tech skills to pursue this. If that sounds like you, though, creating even a simple app could generate income. Apps with ongoing appeal, like budgeting tools or games, are often best and can bring in steady revenue through ads or paid downloads.
Monetise a Blog
You’d be amazed at how much passive income you could make by starting a blog on a topic you’re passionate about. It might seem like a dream job, but it really works–blogs can lead to advertising and sponsorship income, and over time, high-quality content can attract a loyal audience. Once you’ve built traffic, ad networks like Google AdSense can provide a regular income stream.
Set Up a Vending Machine
This might sound farfetched, but it’s totally realistic if you have some money to put into it. Vending machines in offices, gyms, or busy locations can generate passive income; all you’d need to do is keep them stocked with drinks, snacks, or other items, and you can earn money regularly.
Rent Out Storage Space
If you have extra room in your loft, garage, or shed, consider renting it out for storage, which could bring in steady cash. Websites like Stashbee connect you with people looking for affordable alternatives to self-storage units, so if you find the right customer, it could be an easy way to earn from unused space.
Sell Digital Products
Templates, printables, or other digital products can be sold online through platforms like Etsy, making for a marvellous passive income. Once created, these items require little ongoing effort to maintain. Popular niches include planners, wedding invitations, and digital art, but regardless of the niche, a good design can potentially sell repeatedly with no additional work.
Publish a Podcast
Gone are the days when radio is as lucrative as it once was, as podcasts have taken over. Covering niche topics often attracts dedicated listeners, and once you build an audience, sponsorships and ad revenue can provide ongoing income. We’d recommend hosting platforms like Anchor to make it easy to start, but you can quite easily self-publish through Spotify or Apple Music.
Join Cashback Programmes
Our final recommendation for a passive income idea is to join a cashback program, such as Quidco or TopCashback. Believe it or not, these kinds of sites reward you for shopping through their links. Over time, cashback on everyday purchases adds up, so while it might not be as lucrative as other options on this list, pairing it alongside other side hustles could really pay off.
