3 Passive Income Ideas UK
Building multiple streams of passive income is critical if you expect to be financially free. Not having to rely on your salary alone every month.
What if we could build a few streams of passive income sources that could bring you extra money each month. Well, I’m here to tell you that with a little effort, you can. Checkout some great books to give you some inspiration!
1. Dividend Investing
You didn’t think I would not included dividend investing did you?
Although dividend investing does require you lay down money in the first place. Opening a Trading 212 Dividend Investing account and regularly making deposits is a great way to build some passive income.
Whilst it may start off slowly, once that snowball starts rolling it will keep gathering more and momentum.
Personally, I am around 4.5 months in and I am currently averaging around £35 a month in dividends. These dividends are all being reinvested to speed up my compounding returns.
Sticking with an Exchange-Trade Fund that pays a nice dividend would be even more passive as you generally want to keep an eye on your dividend-paying companies. With an ETF it would pretty much be set and forget – regular monthly deposits.
Still, it would be advised to have a look at what is going on at least once a month to ensure everything is in order.
2. Starting A Blog
Start your own blog! Yes, it can be about any subject matter. Whatever you are passionate about. Creating a blog is very rewarding knowing you are helping others out.
I use One Hosting and it has been superb for me. Sign up here to get £5 off!
One has never let me down and the support has been great, highly recommended. Any questions don’t hesitate to email me.
Whatever your niche is, there will always be people out there looking for information. You can be the one to help them find it.
As with dividend investing, the income from blogging will start off very small but given time and consistent articles being published, can grow into a full-time income for some.
Our blogs can be monetized in a few ways.
- Ad Revenue
- Affiliate Links
- Referral Links
- Sponsored Content
- Selling a service or e-book
For me currently I just have Ad Revenue, Referral Links and Affiliate links.
Revenue from the ads is pretty low at the moment but has seen massive growth month on month. Again things start off small and start to snowball so do not be put off in the early stages.
Referral links have earnt me some good money in the space of a few months.
Shown at the end of the post will be a breakdown of all the passive income I have earned in 2020 thus far.
3. Start A Youtube Channel
However reluctant you are on this one, I was too. Starting your own channel is a great way to build an online presence.
Not only this but if you tie it in with your blog as I have done, the two go hand in hand. Youtube is the second biggest search engine after Google so we do not want to be missing out on all that traffic.
UsefulRandom Investing is my Youtube Channel. I am currently not monetized but that does not stop me displaying affiliate and referral links on all my videos.
I disclose my full Trading 212 Dividend Portfolio in my Youtube Videos.
Be sure to hit the like button and subscribe! Follow me on my journey, but join me as well! This can be your journey too.
Passive Income Summary
So the part you have all been waiting for no doubt. Firstly, I must say I am very grateful and humbled that I have made any money at all.
I honestly thought it would take a lot longer to start seeing any money come in.
Starting from January 1st 2020 up until 21th May 2020 at the time of writing I have made £450.75.
Honestly, this blows my mind. This works out to an average of £87.59 a month. I thought it would take years not months to get anywhere near this figure.
Here is a month by month breakdown so you can see the growth. Long may this growth continue.
January – £3.05 Total
- Dividends – £0.81
- Blog Ad Revenue – £0.24
- Bank reward – £2
I get £2 a month from my bank simply for having 2 direct deposits and not going overdrawn. It is passive so I thought I would add it.
February – £38.94 Total
- Dividends – £4.34
- Referral Links – £29.56
- Blog Ad Revenue – £0.07
- Marcus Cash Savings – £2.96
- Bank Reward – £2
An amazing increase from January already! People using my referral link for Trading 212 is amazing as we both get a free share. You only need to put £1 in and can get a share up to £100 in value.
Marcus Cash Savings is an online saving account that pays monthly interest. They have dropped the interest a couple of time over the last few months due to the current world climate. However, it is still vastly superior to your bank.
Having the interest paid monthly also encourages you to save more. I invest more than I save but having an emergency fund is crucial.
March – £167.71
- Dividends – £14.68
- Referral Links – £147.30
- Blog Ad Revenue – £3.06
- Marcus Savings – £0.67
- Bank Reward £2
An explosive month just 3 months in. £167.71 – I was dumbfounded. Seeing amazing growth like this so early on was exciting, to say the least. A lot of this growth came from getting two £65 free shares.
Regardless of that though, I’m looking at the growth in dividends along with the blog as well. Encouraging for sure.
April – £139.58
- Dividends – £45.08
- Referral Links – £83.41
- Blog Ad Revenue – £3.46
- Marcus Savings – £0.63
- Bank Reward – £2
- Google Sheets Spreadsheet Tip – £5
Another amazing month.
It shows why having multiple streams of passive income is so important. When one is down the others can hold it up. In my case the dividends for April were massive but the referrals slightly down.
However, the overall total is pretty similar.
A reader of my blog kindly tipped me £5 for a copy of the spreadsheet as well. This £5 was immediately withdrawn from PayPal and invested in my Trading 212 ISA. The spreadsheet in question can be seen in the Youtube video above.
May – £138.59
Perhaps I should have waited until the end of May but whatever, I can update it then. – Now updated to the end of may I smashed the £100 mark.
- Dividends – £23.27
- Referral Links – £68.13
- Blog Ad Revenue – £16.51
- Google Sheets Spreadsheet Tip – £24.62
- Amazon Affiliate – £5.46
I still have 10 days left to go in May, and I have already cracked £100. It is a slow month for dividends. Only one more dividend is due in the form of Prospect Capital. UPDATE – Now May is over I have updated the totals.
Also I had a few people purchase some of my reccommend books. I hope you enjoy them as much as I did!
A couple of other followers also tipped me for a copy of my spreadsheet and some general help. This is very much appreciated. If you are reading, you know who you are. Thank you.
The Ad Revenue has surprised me the most this month, hopefully, it will be even higher by the end of May.
After putting in a fair amount of time helping others set up their sheets I decided to start offering it on my page as well as a free portfolio stress tester that uses the 4% or 5% rule.
Hopefully, I have inspired at least one other person to get motivated and starts building your own passive income streams. Did the numbers surprise you? Were you expecting far less or much more?
My expectations have been far surpassed already. Who knows what the future holds. I can certainly see how a full-time income is attainable with a few years of consistent effort even just a few hours a week.
Of course, the more time and effort you put in the quicker your goals will be realized. My short term goal was set at £250 a month average.
Hopefully, I can hit within one year, that would be incredible.
Next after that? £1,000. Why not! We have to push ourselves out of our comfort zones.
Earning money while you sleep is the key to getting wealthy, along with living below your means rather above them like most people.
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None of the above should be used as financial advice, I am not a professional. Always do your own research.