Passive income & side hustle ideas to help you save a deposit
When it feels like you spend money every time you leave the house, saving for a deposit can seem like a pipe dream. If it’s left you wondering how you’ll ever raise the funds needed to cover the costs of buying, then you might be toying with the idea of starting a side hustle or finding a passive income stream.
Approximately 46% of UK adults have a side hustle, according to a survey by Finder. If you’re thinking of joining them, discover side hustle ideas that can supplement your salary and complement your current savings habits.
Why consider a side hustle when saving for a deposit?
The economic aftershocks from global events, the cost of living and slowing wage growth are all contributing to the financial pressure felt by many budding buyers.
Nationwide Building Society found that it takes around six years to save a 10% deposit of £23,000 for a typical first time buyer property in the UK. For Londoners, this rises to nine years due to the capital’s higher property prices.
If you want to get there sooner, a side hustle or passive income stream could be a feasible way to supplement your savings. Just bear in mind that depending on how much you make from additional income, you may need to declare your earnings to HMRC. You can check this via the government’s online tax service.
Quick and easy ways to boost your savings
Sell unwanted items online
Turn a wardrobe clear-out into a one-off boost to your bank balance. Platforms like Vinted, Depop and eBay make it straightforward to give unwanted items, like clothing, homeware and electronics, a second life by selling them online. Simply upload pictures of the item, add a description and wait for the offers to come in.
Use cashback sites
Cashback sites like TopCashback and Quidco offer small returns on your spending, which can quickly add up over time if you regularly shop online. You can also maximise your returns by opting into exclusive rates and limited-time deals.
These sites use cookies to track your website visits and purchases. This can be done by clicking through to the retailer from the cashback site, or by downloading a browser widget and opting in to cashback when you land on the retailer’s website. It’s an easy way to make your everyday spending work harder.
Participate in surveys and market research
Get paid to participate in surveys, studies and focus groups by data analytics and market research firms, which businesses and organisations use to help them make strategic decisions.
YouGov is a global firm with a large presence in the UK – its polls and research are often cited in the national news. As a participant, you can earn points for completing research surveys, joining online focus groups, securely sharing data and making referrals. Every 5,000 points equates to £50, which you can redeem as a bank transfer or a voucher from a selection of retailers.
Other platforms providing similar services and monetary rewards include Prolific and Respondent.
Passive income ideas to build over time
Affiliate marketing through content creation
If you’ve always liked the idea of creating content, saving for a deposit could be the motivation you need to get started. Whatever your niche, making videos and posting them on social media offers a route into affiliate marketing. By partnering with brands and sharing unique referral links in your content, you earn a small commission each time someone purchases through your link.
While it takes consistent posting to build a following and get noticed by brands, you could find yourself with a rewarding passive income stream that allows you to flex your creative streak.
Selling digital products
Creating a digital product that people can pay to download, such as a template or e-book, requires time and energy at first. But once you’ve created it, it can generate earnings with minimal ongoing effort. Plus, it can be a cost-effective passive income stream because it doesn’t require any inventory or shipping expenses.
Turning hobbies and skills into income streams
Crafting and handmade goods
Always dreamed of creating artworks or making scented candles in your spare time? Turning a creative hobby into a small business takes a lot of dedication, time and energy, but as far as side hustle ideas go, it can prove incredibly fulfilling. Platforms like Etsy and Shopify make it straightforward to list and sell your wares online.
Freelancing from home
If you have a skill like writing, graphic design or social media management, or enjoy teaching others in your specialism, consider freelancing. It’s one of the most accessible side jobs you can do remotely from home, as it offers a great deal of flexibility. Even picking up a few hours of freelance work each week could make a difference to your deposit savings over time.
Find your space with Share to Buy
Whether you’re selling clothes you no longer wear, completing surveys in your spare time, monetising your hobbies or building a freelance client base, there’s a side hustle or passive income idea to suit your lifestyle and schedule. Whichever stream you choose, consistency is key. Even a little additional income can shorten the time it takes to reach your deposit savings goal.
Read our blog for more deposit-saving tips and explore the buying schemes that could help you achieve homeownership sooner than you think.
