Building Passive Income In The UK:
An Interview with Charlotte Jessop
Welcome to this interview series focusing on UK-based passive income builders. The term ‘passive income’ has been gaining popularity in the last 10 years (according to UK google trends data). Whilst this is encouraging to me, I think that UK-based voices are few and far between.
I don’t doubt there are plenty of pioneering individuals out there with a passive income story to tell. Whether those people are just starting out on their journey. Whether they already have established income sources or they are financially free, this series will highlight them. I hope you find this series enlightening and encouraging, opening your eyes to the multitude of ways you can reach your financial goals.
Today, in our third interview, we’re talking to Charlotte Jessop.
Please introduce yourself
I'm Charlotte! I blog at Looking After Your Pennies. I'm married with two small children. When I'm not blogging I am working part-time as a maths teacher or I can be found outside running, cycling, swimming or walking.
What Does Passive Income Mean To You?
Passive income is making money without consistently or direct input from myself. For me to consider an income stream as passive, the amount it makes me must significantly exceed the amount of effort I put in. In addition to this, it should have the potential to make me money indefinitely or at least in the long term.
What passive income sources do you have?
My main passive income sources at present come from interest on my bank accounts and the returns on my investments. Both of these required some effort to set up but now need little to no input. Although some of my investments are in foreign markets, it is all managed through a UK based service.
How does your passive income compare to your active income and your expenses?
Presently, my active income far exceeds my passive income. However, the ratio between the two shifts forever in my favour even if it is slow. Any money made through interest or investment I put back in to generate further revenue and rely on money made through my teaching job, blogging and other side hustles to cover my expenses.
What are your short and long term goals with passive income?
Short term the plan is to continue to save and invest. My husband and I work hard to ensure that significant proportions of our income go into passive income generating sources. Long term the aim is to increase the passive income streams. My husband is a keen photographer and is looking to sell his images online. I plan on writing an ebook as well as further developing my blog to make income from affiliate marketing.
What are your most passive and most active income sources?
Most passive is investment in our Vanguard Stocks and Shares ISA. Through this we invest our money in Equity Tracker Funds (ETFs) and these require also no input from us.
Our most active income sources have got to be the day jobs. They are hard work but I get a good wage so it is worth it.
What is your favourite passive income source and why?
At the moment my favourite source is interest from my bank accounts. I recently did some research and moved our money around to make the most of the interest rates being offered by banks and building societies. Having now set this up we are guaranteed a return of approximately 4.5% on the money in these accounts which I am very happy with.
Which passive income source has been the most challenging to build? And did you expect this when you started building it?
We are still at the start of our passive income journey and so far our two sources have been fairly easy. (Mostly because they rely on an initial cash injection rather than a time commitment).
Working to develop passive income from affiliate marketing has so far required many evenings of work. However, I am now starting to see some sales through this route so it is pleasing to see my efforts being rewarded.
Do you think your passive income sources will provide consistent income over the long term?
When averaging over the long term, yes! However, as the markets fluctuate I expect there to be variations in the returns. Perhaps as I continue to develop different passive income streams I can expect this to become more consistent on a month to month basis.
What passive income sources would you like to have in the future? Do you see any areas of growth?
My husband intends to develop his photography portfolio and I would like to work on an ebook. Between us, it is our intention to break into the rental market, although I'm not sure how passive this income is in reality.
Do you plan to pass on these income streams to your beneficiaries?
Yes! But I expect to do more than that. We already have investments set up for our children. The income generated from these should help them with future purchases such as university fees or buying a house.
Has passive income-building changed how you save, spend and invest? If so, how?
Absolutely. We are now determined to turn as much of our active income into passive income generating sources. We save more determinedly and spend as little as possible with this goal in mind.
What advice would you give to someone looking to build passive income in the UK?
Do it! Find a way! There are plenty of ways to make passive income. Pick one and make it your goal. Even if you don't want to stop working any income you make whilst you sleep has got to be worth having.
And finally, where can people find you?
Despite a packed schedule, Charlotte manages multiple income streams and aims to make the most of the money she earns. She is in the process of using time-earned money to buy passive income for the long haul. There is no doubt in my mind she will continue to see her passive income grow and make up a greater proportion of her income overall.
A guaranteed return of 4.5% (from well chosen bank accounts) is a great example of using account optimisation to beat inflation. Good rates are out there if you look for them.
If you liked this discussion, hit the like button down below. What do you think of Charlotte’s passive income? You can join in the discussion in the comment section down below