Passive Income Ideas

You Can Make Money On The Internet_Passive Income Ideas

You may have heard the term passive income but not really given it much thought as a viable option. Passive income is income that requires little or no effort to earn and maintain. It doesn’t involve a secret formula, but it allows you to earn after your work is done. A bit like an author would after writing a best-selling novel. Progressive passive income should allow the earner to spend very little effort on growing their income.

There will of course be some effort required in the beginning, but once things have been set up, earning with minimal effort is the goal. Here are some passive income ideas to help get you thinking.

Earning Interest

In order to take advantage of this one, however, you will need some money at first. The longer your money is safely deposited in a savings account, the more interest you will earn. A fixed rate account will store your money for a set period of time, similar to bonds. People who don’t want to access money on a rainy day or in hardship will find this especially useful. The funds are considered locked away until the term has been met; otherwise, you’ll have to pay an early withdrawal fee, which is not a sound financial decision. In case you can’t trust yourself to not access it over time, this will ensure you don’t while you earn.

The government’s Lifetime ISA is a brilliant scheme. Up to £4,000 can be put into a savings account per year between the ages of 18 and 50. Although you have to open the account before you’re 40. The government will give you a bonus of 25% each year if you save the maximum amount – so an extra £1,000 if you do. If you put away £4,000 every year, that’s a lot of free money.

Utilise A Space You Don’t Use

Although buying a property for rent has a lot of appeal in terms of generating a passive income. There are a lot of costs initially and a lot of hoops to jump through. With deposit and stamp duty, there’s a lot of upfront costs. But, maybe you have a room you’re not using and are willing to convert for rent purposes. Maybe it could be self contained with a basic kitchen and toilet, or you’re happy to share your facilities with someone who wants to rent the room. You might have a garage you don’t really use effectively. Maybe it’s just a place to store your things but it could be something you make money from.

If you live in an area close to a busy and popular station or parking is expensive and hard to come by in your area, renting your parking space could be done at a hot price.

Rent Unused Items

Think about it, we probably have plenty of things in our possession that we don’t actually use but that someone else might find useful. I own a bike, but if I’m being honest, I don’t remember the last time I rode it. People sometimes want to do these things regularly at a low cost, perhaps because it is a seasonal activity. There may be a van or a truck in your garage that you can rent to those you trust for moving or shifting items. You’ll be amazed how many options will present themselves through word of mouth, or someone knowing that someone is looking. Put the feelers out.

Etsy

If you’re creative and love to make stuff at home in your spare time, the Etsy platform could be well worth exploring as one of your passive income ideas. When people then purchase you’ll reap the awards of combining your passions at home into a small business. What’s there to lose!

Declutter Your belongings

Be honest, how many times do you do this? We are all surrounded by stuff but maybe this stuff could be sold on. This would clear space for you, earn you money, while still reducing what you throw away, by giving your items a second chance. There are heaps of apps that can help you sell pre-loved items, clothes, books, electronics, some with or without a small fee. My favourite is Vinted. Every penny counts.

Blogging

Passive income ideas could incorporate a passion too. If you have a love for a subject you can’t stop advising friends and family on, you could well turn your subject of passion into a blog. It’s not an instant win. You’ll have to put plenty of hard work into growing it in the initial year. But, after 18 months- 3 years on average you could start to earn well through sponsored content, affiliate marketing and more. Good luck!

Read helpful articles to learn some tried-and-tested tips for saving money, here.

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