With 2022 now underway, it’s time to reflect on how we want to spend this year and prepare for the future. Are you working smart to find that perfect balance between your work and life, or have you slipped back into the tiresome schedule of waking up at the crack of dawn, working all day and rushing to cook dinner late?
By adding passive income to your wage, you can quickly gain more freedom, flexibility and peace of mind, resting assured that you can easily fit your work life around your personal commitments. Lets face it, you spend some of the best years of your life working, so it’s essential you enjoy those years and maximise your time outside of the workplace, without letting the years pass you by.
What is passive income?
To put it simply, passive income is money you can earn with minimal effort and time to maintain. Some passive businesses may take extra time to establish and kickstart than others. However, within a short period of time you should have regular payments dropping into your bank account, with minimal effort required on a daily basis.
There are many different ways to earn a passive income, and different passive income streams are right for different people. It’s all about finding what works for you, as well as what suits your individual skills and interests. Luckily, there is something for almost everyone when it comes to earning a passive income, and some ideas can be put into action in just minutes.
So, is 2022 going to be the year that you create a passive income stream and achieve that all important work life balance? We certainly hope it will be!
We’ve put together our top ten business ideas to help you to create a passive income in 2022.
1. Rent out a room, drive, parking space, garden… or even your car!
One of the easiest and most popular ways to make a passive income is to use the space you already have and rent it out to the general public. The great news is, if you’re living in the UK, the rent a room scheme allows you to earn up to £7500 a year tax free and provides you with certain rights, for simply hosting a tenant in an unused room.
There are many free websites where you can advertise your drive or parking space for those looking to leave their vehicle during the day or overnight, making it easy for you to earn some extra cash. These sites are ever increasing in popularity and work favourably towards both parties, leaving everyone better off.
If you have a spare room in your home sitting empty, you could consider renting it out through websites such as Air BnB. If you rented out a room for £50 a night and had occupants 50% of the year, you could find yourself earning a profit of over £9,000 per year.
Do you find your car is sat on the drive most days due to working from home? You can even rent out your car for the day, meaning you’ll make a profit throughout the year from owning your car rather than a loss. Now that’s what we like to hear!
2. Invest in dividend-yielding stocks
Dividend investing is ideal for first time investors looking for a lower risk investment plan, as the volatility is much less than those of the S&P 500. This is due to their two sources of return, making them a much safer option. Not only do they bring in regular income from dividend payments, they also fetch capital appreciation of the stock price which can become substantial over time.
Another added bonus of investing in dividends is that once you’ve made the purchase, you will have many options over the coming years, to help you get the most out of your dividends. You may decide to save the cash received, reinvest the money with different companies or to use it to finance more shares in the company, increasing your regular payments. Investing in stocks is a great example of how a hefty income can be received with extremely low effort and time required.
Arcades are something which are so often overlooked when it comes to investing money into a quick and easy earner which never goes out of style. In the right location, arcades can turn over great profits with little maintenance required.
This doesn’t necessarily mean you have to invest in a full arcade that you might see at seaside locations. Instead, you can invest in a single gaming machine and place it in a popular location to bring in an additional income stream.
Many pubs, shops and children’s play centres are happy for you to place an arcade machine on their property as it brings an additional interest to their business at no extra cost to them. Think about the type of machine you’d like to invest in, from simple sweet dispensers to grabber machines or even slots. Once you’ve chosen a style of arcade machine, you’ll be able to consider the best place for it to be located, whether that’s a children’s play area, a shopping centre or your local pub.
Depending on the popularity of your machine, it may need collecting from daily, weekly or monthly. However, this is an arrangement that you can discuss with the property owner to come to a solution that makes easy work for the both of you.
4. Become a brand ambassador
Becoming a brand ambassador may not be something that you’ve ever really considered before, but don’t rule it out. This passive income stream is increasing exponentially in popularity due to the sudden boost in social media. Ambassadors can earn a mighty salary by promoting products and services they know and love to their social media following, whilst allowing themselves to be creative.
There are many different ways to become a brand ambassador, including growing your online following, reaching out to small businesses, contacting your favourite brands or partnering with a brand network service who will do all of the hard work for you. It’s all about finding the right route to suit your individual preferences.
Now, you might feel you don’t fit the stereotypical brand ambassador that you see all over Instagram. However, it’s important to remember that there are so many companies to choose from, all of whom are searching for someone different to best represent their business. This means there is a company out there to fit every personality, look and lifestyle!
Just remember – whilst there are many genuine schemes out there, there are also scammers. If you are asked to pay anything to become a brand ambassador, it’s likely to be a scam that will see you spending more money than you earn. If it sounds too good to be true, it probably is.
5. Buy an existing business
If you aren’t interested in the hassle of starting a new business from scratch, why not take a look at pre-existing businesses on the market. These come with endless options depending on your interests and the time you want to allocate to your work life, whilst saving time to spend with family and friends.
You may wish to purchase a well-established and thriving business which is already staffed and functioning effectively, to allow you to take more of a back seat, taking a managing position where necessary to oversee certain aspects. Alternatively, you might spot an opportunity for a business that needs some reorganisation but has great potential with a few tweaks.
Once you’ve made some readjustments and hired the appropriate staff, you should once again be able to step back and reap the benefits. Franchises can also be worth looking into, with their handy templates to work from making them ideal for those new to the world of business, looking to invest for the first time.
6. Create a blog
If you enjoy writing, starting a blog is a great way to create a passive income stream. Although you’ll need to put the work in to get it started, once it’s up and running you’ll be able to sit back and reap the benefits.
First of all, you will need to select a niche. Think about your hobbies and the types of thing that you would enjoy writing about. Once you’ve found your niche, you can simply get your blog online and begin writing.
It’s worth researching some basic SEO tactics to help to get your blog noticed by search engines such as Google. This will help to ensure that readers find your blog and read your posts.
Once your blog is well established, there are a few different ways that you can make money from it. A popular way to monetise your blog is through adverts at the side of your blog, either from Google itself or by selling advertising space to companies. These adverts may be paid depending on how many people see them, or based on how many people actually click on the ads.
Alternatively, you might decide to add affiliate links to your blog posts. This means adding links to products that you mention in your blog. When a reader clicks on your link and purchases the product, you get a small percentage of the purchase price, earning you a passive income from your blog.
7. Hire out equipment
Most of us have things around our homes or in our garages that sit there unused for years, whilst they could be hired out to paying customers. These things might include lawnmowers, tools, furniture, sporting equipment and so much more. The list really is endless with general household items people are eagerly looking to hire in their local area.
However, to push the income received to the next level, it’s a great idea to invest in some popular key pieces to add to your collection. Why not branch out into bouncy castle, hot tub or gazebo hire for example. These party staples are always in high demand, but as they’re only used a few times a year by each household, people are reluctant to splash out and purchase the equipment.
If you’re looking for a really low maintenance income, you can run your business as a collection-only model, with customers collecting their hire items from your house. Alternatively, you could offer to deliver their items within a certain radius of your home address for an added fee.
8. License content you’ve created
Whether you have a flair for photography, writing, art, music, comedy or presenting, there are lots of ways you can license your content to allow a passive income to flow straight into your bank account.
If you’re a budding photographer, you can sell stock images to many online image banks such as Shutterstock, Unsplash or Dreamstime. These companies then sell your images to paying customers, who purchase a licence to use the image in their own content.
You could also try creating your own podcast or audiobook and when it comes to taking risks in starting a business, you don’t really have anything to lose with this one. If you’re nervous to go about it alone, you could try content creation with a business partner to bounce ideas off and to give you support.
9. Invest in land
Investing in land is a great way to earn a passive income. After the initial purchase cost, the ongoing costs and maintenance requirements will be minimal, but you could earn a good income by renting out your land.
For example, you could put a secure fence around your field and let it out as a secure dog field for dog owners looking to train their canines in a safe environment. They can practice their recall technique in safety, without worrying that their dog could be harmed by a busy road.
Alternatively, if your piece of land is near a city, train station or airport, you could rent out parking spaces to commuters at a lower price than nearby car parks. You could offer a monthly, quarterly or even annual rate, providing you with a guaranteed income stream.
10. Create an Alexa skill
Another way to earn a passive income is to create your own Alexa skill. Smart assistants are becoming increasingly possible, with the majority of homes now having at least one smart device. Adults and children alike love teaching their Alexa new skills and commands, so you could create your own skill that users can play along with.
For example, you could create an Alexa game or provide them with fun activities for kids to do while they’re at home on their summer holidays. You could even create an Alexa skill that teaches the user their own skill, such as learning a musical instrument or even a new language!
What is the highest paying passive income?
There are many different ways of earning a passive income, and how much you’ll get out of it largely depends on how much time or money you invest. Investing in dividends or cryptocurrency is often seen as being the most profitable passive income stream. However, it’s important to be aware that there is an element of risk to this, and you could stand to lose your investment at any time depending on the markets.
Creating a blog is a popular way to earn a passive income stream, and there are bloggers out there earning tens of thousands of pounds each month from blogging alone. However, writing a blog requires a higher investment when it comes to time, although it is low-cost and low-risk.
As you can see from this article, there really are many different ways that you can earn a passive income, from hiring out your driveway to commuters to creating your own Alexa skill. The possibilities really are endless, so use your imagination and find a business idea that works for your skills and interests.
We hope that we have given you plenty of passive income ideas, getting you started on your way to earning a passive income with minimal effort and investment.