You don't have to be an economist to know that many people are feeling financial pressure right now. From the rising prices of eggs (if you can find any) to higher interest rates on loans, it's becoming increasingly difficult to make every dollar stretch. But while the economic landscape may feel dire, it doesn't mean you have to sit back and wait for things to improve without a plan.
Should a recession hit, having extra income coming in can make all the difference. The good news is that there are plenty of ways to generate additional revenue, no matter your skill set or schedule. All it takes is creativity, resourcefulness, and a little hustle.
1. Start Freelancing
Do you have a way with words? A knack for graphic design that has your friends constantly asking you to help with their holiday cards? Are you a master coder or tech support expert? Consider freelancing. If you have any specialized skill, whether it's in the arts, technology, or even language translation, there's a way for you to make money as a freelancer.
Let people around you know you're available for hire while also exploring platforms like LinkedIn, Upwork, and FlexJobs for opportunities. In the meantime, set up a portfolio or resume tailored to your freelance work to send out as you find gigs you want to apply for.
2. Get a Side Hustle
If there's one thing that will always be in demand, even during a recession, it's convenience. You can make money driving for DoorDash or Instacart, setting your own hours and working as much or as little as you want.
Do you love to spend time with furry friends, or even feathered or scaly ones? Sign up with the Rover app to be a dog walker or a pet sitter. Prefer human company? With the right qualifications, you could join Care.com as a provider for child or elder care.
3. Resell Used or Vintage Goods
What do classic records, books, games, clothes, and furniture have in common? People will pay money for them - sometimes, big money, depending on the item. Scout your attic for old items in good condition and give them a polish or slight repair as needed.
You can sell items on platforms like Facebook Marketplace, eBay, Poshmark, Thredup, Amazon, and GameStop. Decluttering and making extra cash? Talk about a win-win.
4. Acquire Dividend Stocks
When many people hear the word "recession," they get antsy about the stock market. Take a deep breath. You can make strategic moves to protect your money, starting with dividend stocks. These stocks are designed to pay out over time, usually every quarter, which offers greater stability over the long term.
5. Invest in Precious Metals
Want to give your portfolio a solid foundation during a downturn? Gold is a key asset for a recession-proof portfolio because it offers diversification. When other assets take a hit, gold tends to hold its value, or even grow. In fact, during the recession of 1973-1975, gold surged by 87%.
6. Cut Unnecessary Expenses
When it comes to building wealth during a recession, one of the best steps you can take is to cut unnecessary spending. That means doing a thorough inventory of your expenses, from grocery budgets to streaming services, and trimming the fat wherever possible.
Still paying for a streaming channel you only subscribed to for a single show? It's time to cancel it. Are you making a big grocery trip but still ordering DoorDash weekly? Time to make more mindful decisions about where your food budget is going.
7. Build an Emergency Fund
Having a robust emergency fund means that when life happens - and it often will, when you least expect it - you won't have to drain your savings to cover your living expenses, replace your car, or pay for healthcare. You can break the glass on that money you've set aside, allowing you to keep moving forward.
To build the strongest emergency fund possible, put your money into a high-yield savings account. These accounts typically offer a significantly higher annual percentage yield (APY) than traditional savings accounts, allowing your savings to grow more over time.
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