You see, since its inception around 35 years ago, the FTSE 100 has produced an average annual return of 8% for investors. Real passive income is where you take a great product or service, add systems, processes, automation or people resources, and scale it … If you’re aiming to get your finances on track and you’re in or near retirement, then here’s your chance to claim a FREE copy of an exceptional investing report featuring 5 stocks that The Motley Fool UK is expressly recommending for INVESTORS aged 50 and OVER to consider investing in! Exchange rate charges may adversely affect the value of shares in sterling terms, and you could lose money in sterling even if the stock rises in the currency of origin. The FinecoBank* Multi-Currency Trading Account offers UK investors highly competitive share-dealing rates across 26 global markets. Most of my blog income is from affiliate marketing and advertising on this site – both a form of passive income and I am happy to share the details in this post. Registered in England & Wales. The Motley Fool UK has no position in any of the shares mentioned. The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW. I’ve been reading a lot about passive income recently and it’s becoming clearer and clearer that generating multiple passive incomes streams is the only path to financial freedom. When dividend income is reinvested, investors pick up more stock, which then produces its own dividend income. The content provided in this article has not taken into account the circumstances of any specific individual, and does not constitute personal advice or a personal recommendation for any individual; neither should it be relied upon by any individual when making an investment decision. The amount you need to save will depend on how much income you want to generate. The past performance of UK shares show they’re a sound means of generating a passive income in the long run. UK dividend shares: Are these 6% FTSE 100 dividends top buys or investment traps? To hit this level of income, my figures suggest an investor would need to put away somewhere in the region of £150k to £200k. I think it could be easy to hit this target with just £100 a week. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee. This would provide a passive income of £350 a year on an investment of £5,000. There’s also the potential for capital growth in the long run as these operations work on expanding their underlying profitability. When you’ve started your portfolio, to make the most of compound interest, it’s essential to reinvest all your dividends for long-term growth. The Motley Fool Ltd is an appointed representative of Richdale Brokers & Financial Services Ltd who are authorised and regulated by the FCA (FRN: 422737). Buying a diverse range of high-quality FTSE 100 shares with dividend growth potential could be a sound means of making a passive income. Exchange rate fluctuations can reduce the sterling value of any overseas holdings. At the time of writing, this blue-chip index offers a … Passive income in the UK in 2021 can be achieved in so many ways . I would like to receive emails from you about product information and offers from The Fool and its business partners. Should I buy Lloyds Bank shares for my long-term portfolio? Passive income comes in many forms, which amongst them vary widely in how much initial effort is involved before the income stream can truly be classed as passive. And I reckon it’s possible to do this with an initial investment of just £5,000. Notice I haven’t used the word earn re passive income. © 1998 – 2021 The Motley Fool. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. These stocks yield between 6.7% and 8.9%. Different passive money-making options are available, but one which we saw highlighted was making money passively using the Honeygain app.To explain, let’s define what this app is all about. How to Make Real Money from GTA Online. To help you make a good choice, our sister site - MyWalletHero, has reviewed and ranked some of the UK's top share dealing brokers. The value of stocks and shares and any dividend income, may fall as well as rise, and is not guaranteed so you may get back less than you invested. The Motley Fool UK has recommended Imperial Brands. Today, I’m going to explain how I reached this target and take a look at the companies that have helped me get there. For example, the FTSE 100 and FTSE 250 have produced annual total returns of around 8% over the past two decades. Blogging is one of the best ways to make money online in the UK without money; as hosting starts from just a few pounds. That should be enough to cover all my yearly living costs. Important information and risk disclaimer: The value of shares and any income produced can fall as well as rise, and you may get back less than you invest. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. 2020 stock market crash: 2 of the best UK shares I’d buy in a Stocks and Shares ISA, Stock market crash: 3 UK shares I think could help me get rich and retire early, UK: Freelance Credit Card / Personal Finance Writer, A Top Small-Cap Stock from The Motley Fool UK. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, administrative costs, withholding taxes, different accounting and reporting standards, may have other tax implications, and may not provide the same, or any, regulatory protection. Passive income is defined as any financial gain that comes without active user involvement. Should you require advice you should speak to a qualified financial adviser. In this capacity we are permitted to act as a credit-broker, not a lender, for consumer credit products. The big misconception about passive income is the extent to which work has to be put in to make passive income. Should I buy Lloyds Bank shares for my long-term portfolio? 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