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Great ideas for passive income in 2022

Great ideas for passive income in 2022
Image source: Getty Images.

It makes a lot of financial sense to have passive income, especially now that the cost of living is rising. Take note of these three passive income ideas for an opportunity to secure your finances in 2022.

Before I continue, it’s important to remember that sources of passive income may require time to set up or some initial capital. Additionally, you may also need to maintain them to ensure they grow and continue providing you with passive income. It’s equally important that you dont forget to pay the appropriate amount of tax through a Self-Assessment tax return.

Start a YouTube channel to earn ad revenue

Many YouTubers have made a lot of money solely through their YouTube channels, and youd be surprised at how easy it can be. Currently, many companies are paying millions of pounds into YouTube ads. You just need to make a few videos each week or month, and every time an ad plays on your video and a user views it, you get paid.

The secret to YouTube video success is making videos that have value. Dont be tempted to start by promoting and selling items. Give people valuable information first. Once you hit a certain number of views, YouTube may put ads on your videos, which allow you to earn through ad revenue.

Later, you can increase your income by reviewing and promoting products to earn a commission. Companies can also reach out to you and sponsor a video.

Try affiliate marketing

You must have heard of people who create websites and promote products from different marketplaces to earn a commission once they make a sale. This is affiliate marketing, and the most common is the Amazon associate programme.

Youll even find that you dont have to create a website! You can promote these products through social media and YouTube. In fact, many YouTubers have made a lot of money through affiliate links placed in their video descriptions.

Start a glamping business

Glamping is a type of camping with more luxurious accommodation than typical or traditional camping tents.

To offer such a service, you need to find land near a well-trafficked area, for example, outside a national park. Depending on your financial situation, you could either rent, lease or buy the land you need.

Carry out some research to determine the types of accommodation people prefer and how much you can charge per night. It can be a luxurious tent, motor home, cabin or even a converted shipping container! If youre low on capital, you could rent or lease the accommodation you need to get started.

You can then advertise on websites like Airbnb to attract clients.

Provide parking services

If you live near a busy airport, venue or business district and have space on your property, you could offer parking services. You can also lease a piece of land if you dont own one. However, you may need to consider a few things:

  • Are you still paying your mortgage? If so, does it allow you to offer parking services?
  • Have you considered liability concerns? Vehicles could get damaged while parked on your property.

You can then market your services on social media or a parking app.

Please note that tax treatment depends on your individual circumstances and may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, nor does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

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