Need ideas to start a side hustle to earn passive income for 2022?
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 your 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 on top of their day job.
It’s never too late to look side hustles to diversify your sources of income. Having multiple streams of earnings 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.
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What is Passive Income?
Passive income describes a type of income stream, at the 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 extra money while you are asleep, it doesn’t mean no work requires any work, nor a way to “get rich quick”.
Creating 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 stream examples are stock market investments, rental properties etc. but as of late, with the explosion of the internet, people are finding more creative ways to generate passive income online.
You can too!
How can I generate passive income UK?
Here are 9 side hustle ideas to earn passive income in the UK this year:
1. Start a Niche Site
Starting a niche site and monetize the traffic is one of the best passive income ideas without much of upfront investment.
Unlike the traditional blogging, creating a niche site is when you reverse engineer what people are searching for online and create the content to meet that need.
The best thing starting a niche site is that you don’t need any previous experience or degree to do it, and it doesn’t matter where you live – blogging can be done remotely on your computer or phone.
Take this FREE video bootcamp to learn more about how to reverse engineer the demand online to create a high traffic niche site for passive income.
2. Invest in Rental Property
Although this is nothing new, investing in rental property is still a great side hustle to create additional passive income streams.
The average UK house price increased by 8.5% in 2020, 9% in 2021. In 2022, it is anticipated a further 3.5% rise in UK property prices. [Source] By 2025, it is forecasted to reach around 21.5%.
This data really highlights the growing potential for rental income over the next 3 years.
Just be certain that you know your neighborhood, consult a lawyer to draw up a proper lease, and conduct background checks on prospective tenants before renting your property.
One of the main watch out is that whilst investing in rental properties is a great way earning passive income long-term, it does require high initial investment. If you don’t have the financial means, you may want to consider some other passive income ideas (UK) that require a minimum amount of money investment.
… which brings to my next idea ?
3. Rent Out Your Car
This is an epic source of passive income that I have recently discovered. If you have a car that you don’t need to use everyday, you can rent it out to earn some extra cash with Karshare.
The Karshare is a service for car owners and renters. If you live in the following cities in the UK, you are in luck: London, Bristol, Birmingham, Coventry, and Manchester. One of our owners in London earns £1500 – £1700 a month from his Audi TT – which helped him get his house deposit much sooner than he would have been able to without Karshare.
The Karshare app makes it easy to discover, book, and unlock affordable vehicles from owners in your area. Take your pick from dazzling electric city cars to family SUVs with plenty of storage.
4. Website Flipping
Just like house flipping whereby you buy a home that needs to be renovated. You make it appear and function better before selling it for a profit. Flipping websites is when you purchase a website, improve it, and sell it for a profit greater than what you paid for it.
Blog flipping may be done by yourself on any budget. You don’t need a mortgage or a team of contractors to succeed with this method. In fact, you can do it yourself on any financial situation.
You can earn a substantial passive income from website flipping. Check out my interview with Chelsea about how she earned 6 figures flipping websites.
5. Create and Sell a Digital Product
Another brilliant side hustle idea is to create and sell a digital product. For example, you can can eBook that teaches others about your particular hobby, skill, or interest. Other digital products can be recipe books, email courses, cheat sheets, 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 effort 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.
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.
Take the FREE 7 Day Share Your Passive and Create Passive Income Course HERE.
6. Selling Printables on Etsy
Selling printables has now become one of my favorite passive income streams. The printables are relatively easy and quick to create.
Not only the customers can download the product instantly, for the seller, but there is also no inventory or shipping required and the margin is fairly high. This also means that you can pretty much live anywhere.
You can potentially make thousands of sales on Etsy from spending 1-2 hours creating a digital product, making it one of the most passive income streams.
You can use free tools like Canva to create these printables like meal planners, budget trackers, coloring pages, etc. the list goes on and on.
Interested but unsure where to start?
7. 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 center, consider renting out the house during the event.
Other assets that you can create passive income sources 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 gear, cooking equipment etc. You can list your items from RentNotBuy.
Related Reads: 5 Steps to survive financial recession for your family
8. 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, which makes another great opportunity for passive income side hustle UK.
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 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.
9. Offer Online Classes for a Fee
If you have a natural way of teaching, one of the most rewarding passive income ideas is to create an online course from your skill or hobby and offer it for a fee.
Offering online course is another brilliant side hustle for passive income. You can create an online course once, and then continue earning money from it month after month, without having to do any additional work.
There are several platforms that make it easy to create and sell online course. Udemy, Academy of Mine, Pathwright, and SkyPrep are amongst popular vendors.
Related Reads: How to make an extra £1000 a month UK?
10. Try Affiliate Marketing
The internet is a goldmine for anyone looking to earn passive income. One way to do this is through affiliate marketing, which entails creating an online website with links to third-party vendors and earning a commission on any products that are sold through your site.
This is one of my favorite passive income ideas in the UK (or anywhere in the world). Not only do I get to share my passion, but also I get to help other people while earning money.
This side hustle idea can be started at minimal cost. You simply need access to the internet and create one or more websites with content about a specific niche. Once your site starts generating traffic, it will become increasingly easier to find products that are worth promoting as affiliates for higher commissions rates.
If that’s something you are interested in, take this 7 day Affiliate Marketing for Passive Income for FREE.
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Do I have to Pay Tax on Passive Income in the UK?
It is always a good practice to keep track of your investment, spending, and earning for your side hustle even if you are just starting out.
Final Thought on 9 Proven Side Hustle Ideas to Earn Passive Income UK 
So here you have it, 9 proven passive side hustle ideas in the 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.