Searching to start a side hustle to earn passive income UK?
One big lesson the pandemic has taught us is to diversify our income. With so many businesses going bust, and jobs being cut, your family finance should not be solely relying on our 9 to 5s.
According to a study from Fiverr, more than 50% of UK workers are open to taking a side hustle or freelance work post-pandemic.
It’s never too late to look for ways to diversify your sources of income with new revenue streams. Having multiple streams of income can protect you, should something happen to your primary job.
In particular, the type of income that is passive makes a perfect side hustle to aid your primary income.
In this post, I want to share with you 7 proven side hustle ideas to make passive income in the UK, 2021.
This post may contain affiliate links, meaning if you make a purchase, I may earn a small commission, at no cost to you. Please read the disclosure for more information.
What is Passive Income?
Passive income describes a type of income stream, at time of earning without being actively involved by the person.
The opposite of passive income is active income. Most of our 9 to 5 jobs are active income – to get paid more, you need to work more.
While you can earn passive income while you are asleep, it doesn’t mean it doesn’t require any work, nor a way to “get rich quick”.
To create a passive income stream typically requires upfront work (investment in time and/or money), and some ongoing nurturing. But once it’s all set up, the return is much greater than the ongoing effort.
Traditional passive income examples are stock market investments, rental properties etc. but as of late, with the explosion of the online world, people are finding more creative ways to earn passive income online.
You can too!
Here are 7 ideas to earn passive income in the UK this year:
- Invest in Rental Property
Although this is nothing new, investing in rental property is still a great way to create additional income streams.
Paresh Raja from What To Invest predicts that “there is a strong chance that 2021 may even surpass 2020 in positive property sector growth. After the current lockdown passes, I am confident that the high levels of activity seen last year will continue; further increasing the average price of UK property.”
Just be certain that you know your neighbourhood, consult a lawyer to draw up a proper lease, and conduct background checks on prospective tenants before renting your property.
- Create and Sell a Digital Product
Why not write an eBook that teaches others about your particular hobby, skill, or interest? Other digital products can be recipe books, email courses, cheat sheets, and templates etc.
The great thing about these digital products is that the upfront investment cost is relatively low.
Yes, you will need to put in time and efforts in creating them, plus some ongoing tweaking. But once they are done properly, you can pretty much put it on autopilot.
…which is why creating and selling digital products makes an enticing way to earn passive income UK.
Amazon, Smashwords, and other venues make it easy to create and sell your own publications online.
You can also create your own website to sell your digital products. In combination with affiliate marketing (#7), you can double up on earning passive income UK.
Take the FREE 7 Day Share Your Passive and Create Passive Income Course HERE.
- Rent Out Your Assets
If you have a spare room in your house, why not rent it out for passive income? Or if you live near a conference centre, consider renting out the house during the event.
Other assets that you can earn passive income from are parking space on your driveway, storage space in your garage.
You will be surprised by many house items that you can rent out to people for occasional use, such as power tools, gardening equipment, camping gears, cooking equipment etc. You can list your items from RentNotBuy.
- Take Advantage of Peer to Peer Investment
Interest rates from savings accounts have been less impressive in the UK as of late. Can you make these savings work hard for you by taking advantage of Peer to Peer Investment?
Peer to peer (aka P2P) platforms provide opportunities for investment and lending, here we are focussing on the investment part to earn some passive income.
Investors in the P2P platform benefit from higher interest rates than the banks or building societies are offering, and the borrowers benefit from lower interest rates.
The investment side is often referred to as P2PI.
In the UK (2016), Innovative Finance ISA’s were introduced, these work similar to the more common ISA’s work, in that your earnings from your investment are tax-free, meaning you avoid being taxed on capital gains up to up to a limit of £20,000.
Any investment has risk, so does for P2P lending. You can reduce the risk by investing small amounts over multiple loans. Also to avoid the P2P platforms that go bust themselves, do your research first. RateSetter, Zopa, and Funding Circle are the most reputable P2P lending platforms in the UK.
- Selling Printables on Etsy
Selling printables is another great side hustle to earn passive income in the UK. The printables are relatively easy and quick to create.
Not only the customers can download the product instantly, for the seller, there is no inventory or shipping required and the margin is fairly high.
You can use free tools like Canva to create these printables like meal planner, budget tracker, colouring pages, and etc. the list goes on and on.
Interested but unsure where to start?
This epic course helped Jen Goncalves to start from zero to owning a successful Wedding Printable shop on Etsy.
- Offer Online Classes for a Fee
If you have a natural way of teaching, an additional way to earn passive income UK from your skill or hobby is to create an online class around your interest and offer it for a fee.
Udemy, Academy of Mine, Pathwright, and SkyPrep are just a few of the several vendors that make it easy to create and sell courses.
Related Reads: 5 Steps to survive financial recession for your family
- Try Affiliate Marketing
Why not create a website with links to third party vendors and earn a commission? Increase traffic to your site with blog posts that you or others create and enjoy the profits.
This is my favorite way of earning passive income. Not only do I get to share my passion, but also I get to help other people while earning.
If that’s something you are interested in, take this 7 day Affiliate Marketing for Passive Income for FREE.
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Final Thought on 7 Proven Side Hustle Ideas to Earn Passive Income UK 
So here you have it, 7 proven side hustle ideas to earn passive income UK for this year. You can start with one or combine multiple ideas.
When considering which idea(s) is the right side hustle for you, I recommend assessing which one aligns with your passion the most. Dip your toe in by taking available free courses, and Free trials before you commit to one path.
At the end of the day, a side hustle should be something you enjoy doing even when you are not making money. It will become even more rewarding when you start hearing “ka-ching” when you are not actively working.