Passive income is a way of earning money that requires minimal labour to earn and maintain. The dream, right? This could be anything from royalties, a limited partnership to investments.
Because passive income involves little involvement, it can be ideal for single mothers. When you are raising a child alone, it’s no surprise that you can quickly become time-poor. Where do you fit a full-time job into the equation? Plus, it can feel ten times more important that you give your child or children everything possible. Whilst that involves being around as much as possible, it also involves being financially stable.
Now, we’re not saying that passive income is an easy way to make money. With most avenues of passive income, you do have to put in the groundwork first and foremost. There usually comes a point however, when you can relax and watch the pennies roll in.
So, what ways of passive income could you explore?
If you have the opportunity to rent out an investment property, this is arguably one of the best ways to earn passive income. Sure, you need to uphold your responsibilities as a landlord and there’s certainly plenty of work involved, but once you’ve put in the groundwork and you have a trustworthy tenant, you can sit back and enjoy the income.
It’s worth mentioning that depending on the circumstances in which you acquired the property, much of this income may need to go towards paying off a buy-to-let mortgage. You also need to consider other costs such as all the relevant safety checks and insurance. Most of these are at a fixed price, however you can compare landlord insurance to find a price that suits you.
If having a property under your belt is just not realistic, you could consider renting out a room in your home to a lodger to earn passive income, or even putting a room in your home on Airbnb. Understandably, this may be a difficult option for a single parent with a young child. You need to be careful about who you invite into your home in any circumstances, but especially with a child to consider. If this is something that feels too uncomfortable, perhaps ask around your trusted friends or family members to see whether they are in the market to rent a room.
Long Term Investments
Investing is an amazing way to increase your income passively, however it is not something to be taken on lightly. It can be complicated and certainly involves some research. Done correctly, however, your money will literally make you more money. No time or labour required.
And contrary to popular belief, you don’t need a big pot of money to begin investing. You can start with as little as £1, if you wanted to. Sure, starting out small means that you won’t be earning enough passive income through investing to live on any time soon, but investing is certainly a long-game.
Car or parking space rental
With more and more of us working from home these days, many of us aren’t getting the use out of our cars that we used to. If this sounds like you, you may want to consider earning passive income through your car. There are companies such as Turo that allow you to rent out your car for an average of £574 per month when it’s not in use. You decide what price you ask for and when the car is available, so it’s all on your terms.
You can also make money by renting out your driveway or parking space – particularly if you live in a city centre, commuter town or tourist-heavy area where parking can be difficult. It couldn’t be easier to earn money this way. There are many free websites that offer the opportunity to list your parking space or driveway and some even allow you to calculate how much money you may be able to earn from your parking space each year, depending on the location.
There are so many other ways to earn passive income; stocks and shares, renting storage space, writing a book or ebook, blogging and more. However, these three are arguably some of the most simple and require little time and labour from you.
Have you ever enjoyed a source of passive income and if so, what was it?