2023’s Top Passive Income Streams: Earn Money While You Sleep
As the economy continues to struggle, many people are looking for ways to make extra money and protect their finances. Passive income is a great way to do this as it doesn’t require much effort on your part and can provide you with a regular stream of income.
The idea of making passive income may seem unrealistic and unattainable, but with proper planning, it is achievable.
There are many different ways to make passive income and this article will provide you with 20 of the best passive income ideas in 2023.
So, if you are looking to make some extra money, these 20 passive income ideas might be exactly what you need.
What is passive income?
Passive income is an income generated that requires little effort to maintain. It can provide a steady stream of income and often surpasses the amount a person could make through traditional employment.
Passive incomes can come in many forms, from rental properties to digital products and services such as eBooks or apps.
In simple terms, passive income is an income stream that only requires minimal effort to maintain and yet can be extremely lucrative.
Top 20 passive income ideas
So now that we know what passive income is, let’s look at 20 of the most successful passive income ideas you can pursue in the UK.
1. Rent out your car
Do you have a car that you don’t use that much? If so, you can rent it out and make a passive income.
Turo is a platform where you can list your car for rental purposes, and people can book them for short or long-term rentals. Turo will take care of the insurance and other details, so all you have to do is list your car and get paid when someone rents it.
Upfront cost – £50 – £100 per month for maintenance
How to get started – First, you need to create a Turo (or any other car rental website) account and list your car on the platform. You’ll have to provide some details about the car, as well as photos of it. Once it’s life, people will be able to start renting it out right away.
How much can you earn – £50+ per day (depending on the rental period)
2. Rent your spare room
If you have an extra room in your house that you don’t use, then why not rent it out and make some passive income?
Airbnb is a platform where people can list their spare rooms or entire homes for short-term rentals. It’s quite popular among travelers, who are looking for affordable accommodation options.
Upfront cost – £50 – £100 for room maintenance
How to get started – First, you need to create a listing on Airbnb and fill in the details about your room. You’ll also have to provide photos of it and set a price for the rental. Once it’s live, people will be able to book it right away.
How much can you earn – £50 – £100 depending on how many positive reviews you have
3. Sell stock photos online
If you are a skilled photographer, why not make money from it? There are plenty of websites online that are willing to pay you for your photos. These days – you can even create AI art with Dall-E or Midjourney and sell them on certain stock photo sites like Adobe stock.
You also have the option of setting up a shop on your website or other e-commerce platforms and selling prints or digital copies of your photos.
Upfront cost – Zero (most photo websites are free to use, most camera phones today are good enough to use, though a DSLR camera will help)
How to get started – To get started, you need to create an account on stock photo websites such as Shutterstock, iStockPhoto, and Adobe Stock. You will need to upload some pictures and wait for them to be approved before they can be sold.
How much can you earn – 10% – 50% commission from each sale, $0.25 to $0.5 per sale is doable – so you’d need to build a bit of a portfolio but it has the potential to be good recurring income (depending on the website)
4. Create a print-on-demand store
Are you an artist, designer, or entrepreneur? If so, print-on-demand is the perfect way to earn a passive income allowing you to monetize your creativity.
Utilize your suppliers to curate custom, white-labelled items such as t-shirts, posters, backpacks, and books. This process is similar to dropshipping in the sense that payment for these products will only be issued after they have been sold.
Once you have your store set up, you can automate the production process and even outsource the fulfilment.
Upfront cost – £50 – £100 per month for hosting/domain fees
How to get started – First, you need to find a print-on-demand platform where you can create your store. You’ll also need to set up the payment gateway, design products with custom artwork, and set up a fulfilment process.
Make sure to come up with unique designs and ideas to stand out from the competition. Marketing is also a must to get people to visit and purchase from your store.
How much can you earn – £500+ per month (depending on the number of sales)
5. Rent out your outside space
If you have an empty backyard or front yard, you can rent it out to people who are looking for additional space. This is perfect if you live in an urban area where land is scarce and people need more room to do things like yoga classes or gardening.
People might also want to use your space for parking, putting things while moving, or renovating their place.
Upfront cost – £50 – £100 for maintenance and setup
How to get started – You can either go online or look for people who need temporary space in your neighborhood. For online, you can go to social media websites or specialized platforms that allow renting options like Craiglist.
Make sure to set clear rules about the usage and duration of the rental, as well as any other conditions you may have.
How much can you earn – £50+ per day (depending on the size and location of your space)
6. Create your YouTube channel
If you can create entertaining content, then creating a YouTube channel is an excellent way to make passive income. From tech to cooking to lifestyle, there are tons of topics you can cover.
You can monetise your videos through Google AdSense and make money from the ads that appear in your content. You also have the option of selling products or services related to your channel content.
You can also get sponsorships and brand deals, which can help you make more money as well. However, the competition is quite high, so you need to create content that stands out from the rest.
Upfront cost – £100 – £150 for editing software (you can also use free ones)
How to get started – You’ll need a camera, mic, and editing software to get started. You’ll also need to create content and upload it regularly, as well as market your channel.
The goal is to come up with unique and engaging content that will help you grow your subscriber base.
How much can you earn – £600 – £5,000+ per month (depending on your content and engagement)
Blogging is one of the most popular ways to make passive income online. All you need to do is set up a blog, create quality content, and attract readers.
You can monetise your blog in several ways such as displaying ads, selling products or services, or even creating sponsored posts. One of the best things about blogging is that the potential to make money is virtually unlimited.
Upfront cost – £50 – £100 for hosting and domain
How to get started – To start blogging, you need to choose a niche and create content around it. You also need to set up a website or blog using WordPress or another platform. You might have to learn some SEO techniques to rank your posts and attract more readers.
How much can you earn – £500 to £2,000+ per month (depending on your blog’s niche and traffic)
8. Investing in Stocks
Investing in stocks has always been a popular way to generate passive income. If you manage to find good stocks, you can easily earn 15% – 18% returns on your investment.
The best part about investing in stocks is that it doesn’t require too much capital to get started. You can start with just a few hundred pounds and grow your portfolio over time.
However, investing in stocks comes with risks because the stock market is subject to fluctuations. So, make sure to properly diversify your portfolio to minimise the risks and always do your due diligence before investing in any stock.
Upfront cost – £50 – £100 to get started (you can increase it depending on your budget)
How to get started – To get started, you need to open a brokerage account and fund it with some money. Then you can start looking for stocks that are attractive investments and create a diversified portfolio.
How much can you earn – 15% – 18% (higher or lower depending on your strategy) returns on your investment per year
9. Affiliate Marketing
Affiliate marketing is a commission-based online business model that has the potential to generate a steady passive income. All you have to do is promote other people’s products or services and earn commissions.
You can sign up with various affiliate networks, such as Amazon Associates, Clickbank, Shareasale, and Commission Junction, and choose from thousands of products to promote.
Upfront cost – £50 – £100 for website and other maintenance
How to get started – To get started, you need to choose a niche and create content around it. You also have to sign up with an affiliate network and start promoting products.
You can promote these products through your website, YouTube channel, blog, or even through social media.
How much can you earn – £500 to £5,000+ per month (depending on your niche, traffic, and commission)
10. Peer-to-peer lending
P2P lending is a great way to generate passive income by investing your money into loans. You can become a lender and invest your money in different borrowers.
The platform will then collect the payments from the borrowers and distribute them as returns to you. The more borrowers you have, the higher returns you get on your investment.
Upfront cost – £50 – £100 (you can increase the amount depending on your budget)
How to get started – To get started, you need to sign up with a peer-to-peer lending platform and create an account. You can then start investing your money in different loans and collect returns on your investment.
How much can you earn – 6% – 36% (higher or lower depending on the type of loan) returns on your investment per year
11. Write an eBook
Do you have an idea for an interesting book, how-to guide, or advice that you want to share? Writing and publishing an eBook can be a great way to make passive income.
You can either publish it on your website or Amazon Kindle Direct Publishing, as well as other platforms like Apple Books. You can also market it on various blog sites and social media accounts.
Upfront cost – £50 – £150 (for marketing)
How to get started – To get started, you need to come up with a topic and write the content. You can either write it by yourself or hire a professional writer to do it for you. Once the book is written, you can design the cover and format the book as an eBook.
How much can you earn – £1 to £10+ per download (depending on your pricing model)
12. Buy and sell websites
Buying and selling websites mean purchasing an existing website, improving it with SEO and other strategies, and then selling it for a higher price.
You can find websites that are worth purchasing on various platforms like Flippa or Empire Flippers. You will also need to invest in marketing and SEO to maximise the value of the site before you sell it.
Upfront cost – £30 – £500 for listing your websites
How to get started – First, you need to find potential websites to purchase. Then you will have to evaluate the website and determine its potential value.
Once you make the purchase, you need to invest in SEO, design improvements, and content creation to increase its value before selling it.
How much can you earn – Depends on the value of your website
Dropshipping is an e-commerce business model that allows you to run your store without having to invest in inventory or shipping. All you have to do is find a supplier, list their products on your site, and send traffic to them.
When someone buys from your store, the supplier will ship the item directly to the customer. You can then keep the difference as your profit.
Upfront cost – £100 – £200 for website maintenance and marketing
How to get started – To get started, you need to find a supplier and create an e-commerce store in Shopify or another platform. You also have to learn some basics of digital marketing so you can send traffic to your store.
You have to market your store and build a customer base by creating content, running ads, or engaging in social media.
How much can you earn – £500 to £5,000+ per month (depending on your store’s traffic and margin)
14. Sell digital products
Digital products are assets that people can access without ever leaving the comfort of their homes. These resources come in a variety of formats, from audiobooks to PDFs and templates to plug-ins.
Digital products offer massive profit margins since there are no storage or inventory costs. You can make money for a single investment, as there is no restriction on how many times you can resell it.
Consequently, your profits are only limited by how much effort you put into marketing and selling the asset! On Shopify, you can launch a digital store and begin selling products that create passive income streams.
With automatic downloads configured on the platform, your customers will receive their orders immediately after purchase – making it an incredibly lucrative business model for entrepreneurs!
Upfront cost – £100 – £200 for hosting, domain fees, and marketing
How to get started – First, you need to create a digital store on Shopify. You’ll also need to choose products that can be sold as digital assets (such as Audiobooks, templates, guides, or PDFs). Once everything is set up, you have to start marketing your store.
Make sure to come up with unique ideas, or bundle products together to increase the value of each sale. You can also promote your store on social media and other online channels.
How much can you earn – £1,000+ per month (depending on the demand for the product and how much marketing effort you put in)
15. Create an online course
If you are good at something or have special skills such as teaching, writing, or coding, then you can create an online course and sell it.
All you have to do is create a course outline, record videos for each section of the course, and upload them online. You can also include other materials such as PDFs and audio files as supplementary material in your course.
Upfront cost – £100 – £200 for editing software and marketing (if you don’t have a camera, you might have to buy it separately)
How to get started – To get started, you need to sign up with a course platform such as Teachable, Udemy, or Thinkific. You will also need a camera, mic, and editing software to record and edit your videos.
How much can you earn – £500 to £5,000+ per month (depending on your course’s popularity)
16. Create a job board
A job board is a website that employers use to tell people about open jobs. You can apply for jobs on the website with a few clicks.
The person who made the job board can make money by charging companies to post on the board, and by selling extra features like unlimited access to resumes.
You can either design a job board or buy one that is already made. You should spend most of your time making people aware of your job board. You can write a press release, post on social media, and run paid ads to get attention.
If you manage to get a couple of loyal customers, your job board can become a reliable passive income source.
Upfront cost – £100+ for hosting and a domain name
How to get started – First, you need to create your job board either by coding it yourself or buying one online. Then you should set up payment gateway options like PayPal. Once everything is ready, start promoting your job board on social media and other online channels.
Make sure to come up with interesting offers for employers that will make them visit your website, like a free trial period or discounts for regular customers.
How much can you earn – £500 – £1000+ per month
17. Create an app
If you have an idea that can put a positive impact on people’s lives, then you can create an app and make passive income.
You can either build the app yourself or hire a developer to do it for you. You can then upload it to the Google Play Store or Apple App Store and monetise it using in-app ads or charge users a one-time fee (depending on your revenue model).
You might have to pay for marketing, development, and other costs of creating an app.
Upfront cost – £200 – £1000+ (for hiring a developer and marketing)
How to get started – First you have to hire a developer or learn how to develop the app yourself. Then you have to purchase hosting and configure the app. Finally, you have to upload it to the respective stores and set up your monetisation plan.
How much can you earn – £0.40 to £3+ per download (depending on your pricing model)
18. Invest in local businesses
If you have some extra money to invest, you should consider investing in local businesses. Investing in new or established businesses can be a great way to make passive income.
You can look for investments through an online platform like Crowdcube or Seedrs, or local business networks and events. You will need to do your research on the business and determine its potential before making any investments.
Upfront cost – £500 – £1000+ (you can increase or decrease the amount depending on your budget)
How to get started – First, you need to research local businesses and evaluate their potential. Then you need to decide which one you want to invest in and make an offer.
Once the offer is accepted, you will have to monitor the business’s progress and be prepared for any risks that come with investing.
How much can you earn – £300+ per month (depending on the size of your investment)
19. Rental Properties
One of the best ways to generate a steady passive income stream is to buy rental properties and rent them out. However, if you already have an apartment or house, you can also rent out a room or two.
Renting allows you to generate a steady income that can increase over time as rents increase. All you have to do is keep your property in good shape and choose reliable tenants.
However, buying rental properties does need some capital and can come with some risks. You have to repair, add necessary upgrades, pay taxes, and more to keep your investment profitable.
Upfront cost – £1,000 – £1,500 for mortgage and maintenance costs per month
How to get started – To get started, you have to market the property and find good tenants. Social media, newspapers, property websites, and word of mouth are all great ways to advertise your property.
How much can you earn – £1,000 – £3,500 per month (depends from property to property)
20. Invest in vending machines
Investing in vending machines is a great way to make passive income. You can buy vending machines and place them in areas with high foot traffic such as schools, offices, or shopping malls.
All you have to do is keep the machines stocked and collect your profits. This is a great way to make money without having to do too much work.
Upfront cost – £2000 – £4000
How to get started – First, you need to find potential locations for your vending machines and evaluate their potential sales.
Then you should purchase the machines and install them in the chosen locations. Finally, you will need to keep the machines stocked and maintain them regularly.
How much can you earn – Depending on the size of your investment, you can make £500+ per month from this passive income stream.
So, there you have it! These are the top 20 passive income ideas in the UK. We hope that you have found this article helpful and that it has provided you with some useful insights into making money passively.
Remember, when it comes to passive income streams, it’s important to do your research and find an idea that works for you. It might take some time to get started but once you get the hang of it, you will soon start to make a steady income without having to do much work. Good luck on your journey to Retire Decades Early!