- Guest Post
The Best Passive Income Ideas in the UK
Updated: May 28, 2022
The term passive income can sound very appealing to entrepreneurs who are looking to make money from things other than their own labor, but the term doesn’t necessarily mean it comes easy.
In fact, there are plenty of passive income ideas in the UK that you can try your hand at, including, but not limited to: owning and renting out property, investing in stocks or bonds, managing rental properties and even starting an online business that doesn’t require you to be physically present on the premises or online.
So lets jump straight in and take a look at the Best Passive Income Ideas in the UK.
Passive Income UK
We have updated our passive income UK 2021 guide to create this new Passive Income UK 2022 guide, as things have moved on in the world recently.
So, if you are seeking some help on what is the best passive income in the UK, or how to make passive income in the UK, then you have come to the right place!
Investing in Shares
If you have some spare cash, then investing in income generating shares can be a great way to generate extra passive income on a regular basis.
Investing in individual companies that you believe will grow, and provide a reliable source of income via dividend payments, is one of the best ways of making hundreds or even thousands of pounds every month, year in year out!
We buy our shares through the eToro Platform, as you can buy and sell for FREE, and they don't charge the trading tax fee. Take a look for yourself here.
For example, if you invest £10,000 into Apple and they grow by 15% over 12 months, your total investment grows to £11,500. And that’s just with one company! Dividends will also provide extra quarterly income.
Investing in Real Estate
Long-term passive income can be achieved through investing in real estate. If you choose to invest, understand that it takes time and work to create wealth with property, as opposed to participating in speculative investment markets.
However, a decent return on investment can be made if you put up a down payment and make timely payments on your mortgage, paid for by your tenants.
Whilst making a passive income with property can be challenging due to the upfront costs, there are websites these days that allow you to own a share of a property, so you can enjoy the asset class for a fraction of the cost. We like using Brickowner for our property investments.
Creating a Business Online
There are many different ways to make money and passive income from home in the UK, but creating a business online is probably one of your best bets.
This doesn’t necessarily mean you have to start an e-commerce website and sell things; there are plenty of other successful business models that run on passive income.
Consider starting a consulting or coaching practice, or sell advertising space on your website to companies that offer related products and services.
Blogging websites like Wealthy Affiliate are also very popular.
They show you exactly how to set up a successful blogging business from start to finish, and the great thing is, you can take a look for FREE by signing up for their first class to show you the ropes.
Take a look for yourself, you have nothing to lose, and a potential 5 figure monthly passive income stream to gain!
More and more companies are turning to freelancers to fill contract work—in fact, it’s one of the largest growth areas of self-employment.
This is thanks, at least partially, to businesses seeing it as a way to cut down on overhead costs.
Getting into Amazon FBA
If you’re looking for a way to turn your passion into profits, Amazon FBA is one of the most straightforward ways. With Amazon FBA, you start by researching and sourcing new products.
You ship those products to an Amazon fulfilment center, where they’re stored until they sell. Then Amazon packs and ships them when buyers place orders.
Trading on Stocks Markets
The stock market is an ideal way to add extra income to your bank account, especially if you have a long-term investing strategy.
The number of millionaires made by trading on stocks markets is impressive, but it’s also true that many people who lose money or don’t succeed at their first try.
It takes a great deal of study and practice to learn how to trade on stocks markets, but once you get there, it can be very rewarding.
The Best Passive Income UK - The Bottom Line
Starting a passive income stream isn’t easy and it doesn’t happen overnight. It can take anywhere from several months to several years to start making a substantial amount of passive income depending on what you do.
Start researching your best passive income ideas right away and best of luck!