It's no secret that the economy isn't doing well now. More and more people are finding themselves out of work, and businesses are closing their doors left and right. If you're one of the many people struggling in this tough economy, don't worry - we've got you covered! In this blog post, we will discuss 13 ways that you can make money in a recession. So whether you're looking for a new job or just trying to find some extra cash, read on for some great tips!
What Is a Recession?
A recession is a well-known economic concept that can be quite complicated to understand. Simply put, it refers to a period where significant decreases in economic activity result in significant losses in money and wealth being held by businesses and individuals. During this time, overall spending slows down, and production output drops. Various factors, such as changes to interest rates or bank lending practices, increased taxation, or decreased availability of goods and services, can cause a recession.
What is certain when facing a recession period is that businesses must adjust their strategies to manage their expenses and remain competitive. They might choose to reduce spending on non-essential services or equipment and often find themselves needing to ask staff members to take unpaid leave. While these measures reduce costs, they also impact employees with less income, reducing their spending power. This ripple effect is what can lead to a severe cycle of recession.
How To Make Money In A Recession?
Here are 15 ways you can make money in a recession:
1. Freelance Gigs
With so many businesses struggling, now is a great time to capitalize on freelance gigs. You can easily find temporary or contract work from websites like Upwork and Fiverr - where people post jobs they need help with.
2. Sell Crafts
If you're the crafty type, this could be a great way to make extra money while helping others out of a tough spot. You can create jewelry and home decor pieces and sell them online or at local markets and stores.
3. Become A Rideshare Driver
Being a rideshare driver might not be suitable for everyone, but it's one of the best ways to make money in a recession if you have a car. All you have to do is sign up, and you can start driving right away - plus, you get to keep all the money that comes in!
4. Invest In Stocks
The stock market may sound intimidating initially, but if done correctly, it can be one of the best ways to make money in a recession. With stocks, you are risking your capital- which means there is potential for significant returns over time. Dollar-cost averaging is a great way to start with stocks, especially if you're new to the game. Discounted stock prices can also provide an excellent opportunity to buy up stocks cheaply.
If you don't want to risk your money in stocks or bonds, opening a high-yield savings account is a great way to make money in a recession.
5. Start A Side Hustle
There have never been more opportunities for starting your own business than now. Whether selling products online or offering services like web design or tutoring, there are plenty of options for budding entrepreneurs.
6. Become A Virtual Assistant
Companies are always looking for help, and if you're great at administrative tasks, becoming a virtual assistant could be the perfect way to make some extra cash while working remotely.
7. Take Advantage Of Low-interest Rates
Low-interest rates mean you can take out a loan or even refinance your mortgage if you need to free up some cash - this strategy should always be used cautiously, though! Make sure you understand the terms and conditions before making significant financial commitments.
8. Rent Out Space
If you have an extra room or two in your home, why not rent it out? You can do this through services like Airbnb or VRBO, and you'll get to keep all the money from renting it out. Living expenses can be pretty expensive during a recession, so this could be a great way to make some extra cash.
9. Become A Tutor
Not everyone is cut out for teaching, but if you know a particular subject well and enjoy helping others learn, this could be a great way to make money in a recession. You can create your own tutoring business or offer online lessons on sites like Outschool or TutorMe.
10. Become A Pet Sitter
If you love animals, why not offer your services as a pet sitter? This is another excellent way to make money from home during a recession - and all you need is internet connection and a love for pets! You can sign up for sites like Rover or DogVacay to get started.
11. Monetize Your Blog
If you have an active blog, monetizing it could be a great way to make some extra passive income in the current recession. You can make money off your blog by selling ad space or partnering with brands in no time!
12. Flip Items Online
With many people looking for ways to save money, now is a great time to start flipping items online. You can find used furniture, electronics, and other items that could be resold for profit. An economic downturn can also be a great time to find deals on items that could be flipped for money.
13. Try Your Hand At Reselling
From clothes to books to antiques - there are plenty of things you can buy second-hand and resell for a profit if you know what you're doing. Make sure to research before diving into the world of reselling.
Bottom Line
Being creative and resourceful is the key to making money in a recession. Explore different ways to make money, whether through starting a side hustle or finding an additional source of income. Consider the pros and cons of each opportunity before taking the plunge. Lastly, remember that although recessions can be challenging, there are still many opportunities for those willing to put in some hard work and take advantage of them. With a bit of ingenuity and perseverance, you will be able to succeed even in tough economic times.
