5 Lucrative Passive Income Ideas
A steady stream of passive income can mean the difference between a life of financial dependence and one of financial freedom.
The pandemic might have made some things more challenging, but even so, there are many lucrative passive income avenues that are worth exploring.
These five passive income ideas — including one as easy as offering up your garage for rent — prove that there are great opportunities out there, even in times of uncertainty.
How to Make Passive Income
People who set financial goals each year are likely to make passive income a priority during their planning. Traditionally, this type of income is closely linked to investments and trading. Thanks to modern technology, there are plenty of other earning opportunities to consider.
1) Rent out your garage or other unused space
For health reasons, many property owners have shied away from welcoming live-in tenants into their homes during the pandemic. As a result, a lucrative source of passive income might have dried up. Thankfully, there is another way to earn from your property, even as the pandemic rages on.
Renting out your property as storage space — in particular your garage or spare room — can help you make up to £760 per month with a platform like Stashbee (think of them like the Airbnb of storage). More importantly, if it’s the only source of income from the property in the tax year, the first £1,000 earned doesn’t have to be declared with HMRC. These savings can then be reinvested elsewhere.
Property owners have another lucrative passive income earning opportunity right on their doorsteps – or rather, in their driveways. Just like with storage space rentals, Stashbee also pairs up parking space tenants with potential renters across the UK.
The result is a win-win for both parties. Renters pay a fixed fee for a secure parking space near their work (or wherever they need to be), and hosts earn a steady fixed passive income each month. The parking space host literally only has to wave to their guest from time to time, and accept new bookings as they come in.
3) Create and sell a digital product
Creating and selling digital products online can be a great way to earn a passive income. Full disclosure: this will require a fair bit of work initially. The goal is to create something that will eventually earn money while you sleep, growing into a consistent source of passive income over time.
The idea is to get paid for your existing knowledge, so there is no need to reinvent the wheel. Take a skill or interest you have, and plan and create an online course for others. Upload it onto one of the many online course platforms out there, tell people about it and watch the earnings come in.
4) Write and self-publish a book
Writing is a solitary craft, making it the perfect passive income idea in a time when people are stuck in lockdowns all over the world. Although finishing a book is no small task, it can end up producing a steady flow of passive income, even when it’s done without a traditional publisher.
There are many helpful tools and resources online, and self-publishing an eBook on Amazon involves very little red tape. Scale up your passive income earnings by writing about that niche skill we talked about earlier and selling the book with the course as a digital bundle.
5) Start an emergency savings fund
There’s no simpler source of passive income than the interest earned on a long-term emergency savings account. As this fund is meant to be a backup for a time of crisis (or when a root canal pops up out of nowhere), people usually aim to have between three and six months of expenses available at the drop of a hat.
Traditional banks won’t offer exorbitant amounts of interest, but every penny earned is still passive income. This type of passive income is lucrative in a different (yet equally important) — it provides peace of mind.
Staying the Course
Although it’s a daunting period in world history, it remains important to prioritise financial health and to continue working towards existing savings goals wherever possible.
It certainly won’t be easy. However, finding new ways to earn a passive income can alleviate the burden, and help to create momentum for life after the pandemic.
Stay the course. By doing the hard work now, it may be possible to emerge stronger than ever in the coming years.