I have been thinking about how I can increase my passive income this year. I feel that I need to increase it year on year until I get to a stage where I can retire because my passive income is enough to live off. This is a summary of what I made last year.
I do have most of my money invested in Premium Bonds. These do not pay out the largest amount of money, but they are tax free and there is a chance of winning quite a bit of money. I could do better in an ISA though and earn more interest that way. I will do some research about what options are available and see whether there is anything that might earn me more. If interest rates rise much this year, I may be better paying the money against my mortgage as at the moment I can earn more elsewhere because my interest is only 0.99% but as it is a tracker, any interest rate rises will effect that. I have calculated that if I had that money against the mortgage I would have paid approximately £400 less in interest over the year, which was not as good as we got in prizes. We earned around £600 in prizes in 2012.
I am hoping my book sales will continue to earn me some money this year. I am hoping books I have written in the past will continue to earn money and I have plans to write more as well, to hopefully increase that. This isn't true passive income as you do have to write the book, but once written, I do not additional work to promote sales. I earned around £800 from book sales in 2012.
The best earner has been the solar panels. As well as receiving feed in tariff payments, we also saved money on our electricity bill. We earned/saved around £750 in 2012.
This only adds up to £2150. This sounds like a nice sum of money and it is certainly a nice extra sum to have. However, it would be great to be able to improve on it in 2013 as if either of our incomes were compromised, it would be difficult to manage otherwise. I have a few ideas on how I could get more, but I will have to keep thinking if I want it to be significant.