How To Make Money During A Recession
If you're looking for ways to make money, you've come to the right place. Here are some practical tips for making money during a recession, whether your goal is to make extra cash or replace lost income.
You can also get creative and look for ways to make money that don't involve a 9-5. This is when your creativity and ingenuity will be most valuable, so don't be afraid to try something new! Here are some suggestions:
- Get a second job (or third or fourth)
- Start a business (click for a free guide)
- Sell your stuff online
- Refinance your house if you haven't already done so to pay off debt or get a lower rate on your loan payments.
- Consolidate your credit card debt into one big loan with lower interest rates and monthly payments. This might be hard if you're starting, but it's worth considering in the long run!
- If you have any room left in your budget after paying down debts and lowering interest rates, start saving on gas by driving less often (and using public transportation). Or see if there are other ways to cut back on spending so that more money goes toward paying off debt instead of spending frivolously on things like food or clothing. It's better not to have those things than to have them when we're already struggling financially!
Get a side-hustle
A side hustle is a way to earn extra money on the side. It's also a great way to learn practical and intangible new skills. But most importantly, it's a way to make money when needed: during a recession.
Here are some popular side hustles that are easy to get into and can be done online or offline:
- Selling stuff on eBay/Craigslist
- Taking surveys online (like this one)
- Writing articles for websites like this one 🙂 (use this free tool)
Pick up a part-time job
Picking up a part-time job is the easiest way to make money during a recession.
Plenty of websites list part-time jobs—Craigslist, Monster, and Indeed are just a few—and they're all easy to use. Just create an account with your email address, upload your resume, and get searching! Be prepared to be flexible; you might have to take on tasks outside of what you're qualified for or even things that aren't exactly in line with your interests (but will pay the bills). And if possible, try not to work more hours than you need: 40 hours per week means that 40% of your paycheck will go toward taxes unless you want serious debt problems later on. If possible, look for opportunities close to home, so transportation costs won't consume too much of what little money remains after paying rent/mortgage payments and other expenses such as utilities (gas/electricity) or phone bills.
Stockpile on necessities
In a recession, you want to stockpile necessities like food and water.
Stockpiling pet food, medications, gasoline, and batteries would be best. If you live in an area that gets a lot of rain or snow (i.e., where the weather can be unpredictable), solar panels might also be worth your time!
This way, if people cannot pay for their usual expenses during hard times, they’ll have access to them anyway.
Sell your unwanted goods.
Selling your unwanted goods is a great way to make extra money. If you're like most people, there are plenty of items in your home that you no longer need or use.
If you have an old phone, computer, television set, or any other electronic gadget lying around the house collecting dust, consider selling it online. You can either sell it directly to someone through sites like Craigslist or eBay (which is more time-consuming) or choose one of the many websites that specialize in buying used technology, such as Gazelle and NextWorth. These sites will offer cash for your old tech products based on their resale value (and sometimes even more).
Make money with video games.
The economy is in bad shape, and you're looking for ways to make money. If so, playing video games is the perfect time to earn cash.
While there are many ways to earn money through video games, the easiest way is probably by selling your old video game consoles and equipment on eBay. You can also use the money you earn from selling these items as seed money for starting your own business or expanding an existing one.
Make money by delivering groceries or takeout meals to customers.
Delivery services are a great way to make money.
Use your car, bike, or scooter to deliver groceries or takeout meals to customers. You can also do it on your own through sites like TaskRabbit and Gigwalk; you'll need an app-enabled phone to get jobs like these. If you're looking for an extra gig that doesn't require much spare time or energy, this could be perfect!
Refinance your life insurance policy or your mortgage.
You may be surprised to learn that refinancing your life insurance policy or mortgage can save you a lot of money! It’s true: many ways to save cash in these tough economic times exist. And it’s not just about cutting back on spending or having a garage sale.
Not only is refinancing an easy way to cut back on interest payments (and thus increase the amount of money available for other things), but it also has other benefits. For example, because many people don’t pay off their mortgages until they retire and move into a smaller house or apartment and stop paying their mortgage altogether at all—or even refinance again once this happens—it usually makes sense for them to keep paying the same monthly amount throughout their lives instead of trying to sell off all their belongings before they die (and thus save money).
Consider refinancing your car or consolidating student loans.
You can also consider refinancing your car or consolidating student loans. Refinancing your car can lower the amount you pay in interest and help build positive equity in your vehicle faster. By consolidating multiple credit card debts into one loan, you may be able to reduce the total cost of debt by lowering your interest rate. Consolidating all of your debts into one loan will simplify the process of making payments and could help lower the total cost of payments per month by reducing fees associated with having multiple loans. If possible, try to consolidate both your car and credit card debt into one loan as well by refinancing both loans individually at a bank or through an online service like Lending Club so that they are combined under one monthly payment (which will likely be less than what it would have been if paying for each individually).
Save on gas by planning and organizing your errands so you can run them all at once.
Learning to do more with less is the key to saving money when you're short on cash. The most obvious way to accomplish this is by cutting back on your spending habits, but there are other ways to save.
One of my favorite ways to save money is by planning and organizing my errands so that I can run them all at once. Instead of running back and forth between stores every few days, I take advantage of the fact that most stores are open for long hours and plan out my shopping to fit into one trip instead of multiple trips throughout the week or month.
Ask for a pause in paying your bills, including rent, utilities, and credit cards. Banks are allowing mortgage payments to be suspended or deferred during this time. So are credit card companies. Call them and ask for the same courtesy if you need to take some financial pressure off for a while. If you ask, airlines, hotels, and many other companies will give you similar payment pauses.
If you're struggling financially, ask your creditors to pause your payment. Credit card companies, banks, and others allow mortgage payments to be suspended or deferred during this time. So are credit card companies. Call them and ask for the same courtesy if you need to take some financial pressure off for a while. If you ask, airlines, hotels, and many other companies will give you similar pauses.
You could save money by not paying your bills for a while – but remember that it is better in the long run, if possible, to keep paying at least part of them so as not to damage your credit rating even further or miss out on any interest-free periods offered by some providers.
The coronavirus pandemic plus money printing has caused a recession – but it can still be done!
You can still make money. The virus has spread quickly but won't stop you from getting what you want. Your chances of making money are more significant than ever because now more people are unemployed!
The biggest takeaway from this recession is that it's essential to find an alternative source of income that doesn't depend on the economy. If your job were lost due to a downturn, could you continue paying your bills?
There's no need to panic. Keeping your head above water during a recession is about prioritizing what matters, keeping calm, and taking a deep breath. You can still enjoy life and have fun – even if you're not making as much money as in better times!
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