How To Make Money In A Recession?

Definition of "How to make money in a recession?"

Taking a look at today’s economy, whispers of recession have been heard across the globe. While things can not be certain, with the 2008 economic crash so close behind us, it’s easy to look back and think about what you could have done differently. We aren’t saying that the situation is the same, but some factors that have a powerful impact on the economy are affecting the way we budget our incomes. Looking at ways to ensure your financial stability is a natural part of life, but with the uncertainty of the economy, making money doesn’t seem like such an easy feat anymore.

 

Sharp growth in interest rates and inflation is a sign of concern. At the same time, the stock market is going down and people are looking for ways to determine their financial decisions. It’s not easy to think about investments when prices are soaring, but it’s not something to overlook that easily either. While there isn’t anything that’s 100% certain during a recession, some ways proved more effective than others.

 

Investing in a Recession

While investments seem risky, especially during a recession, some investments are less likely to return negative. Government bonds are reliable and safe during a recession, while others may be volatile and easily affected by a drop in stock prices or a rise in inflation. The value of bonds, like Treasury Securities, can even grow during a recession.

 

Go into investments when prices are low. If you have a stable income, you can take advantage of a depressed stock market and create an investment portfolio. In time, your returns will show results as the economy moves out of recession. Invest in your retirement fund as well if you can. Go as far as increasing your payments if possible.

 

Still, the most secure and profitable investments are those that go for long-term and stable assets. While an unstable economy can still affect the housing market, the inventory is low overall while demand is soaring which makes property investment a viable money making opportunity. Lastly, precious metals are always a sure investment opportunity as they are real assets, always in demand, and the inventory is limited. Even if more is found, it’ll always be precious.

 

Manage Assets for Profit

If you own a home and you don’t need all the rooms, rent them out. Similarly, if not in use, you can rent out a parking space that you don’t need. While you do not need those spaces, others do, and you can add to the necessary supply to satisfy demand while at the same time earning some extra passive income. Either way, but managing owned assets in such a way that they can bring an income, there is a very low risk to your finances, only the possibility of damage that insurance can cover.

 

You can go further when it comes to any personal assets you own. If you don’t use certain items that you have around the home or clothes, you can try to sell them. You can look into internet auction sites like eBay and be honest with your descriptions while also asking for the right price. Clothes can also be sold at thrift stores or vintage shops. However, a garage sale is one of the simplest ways to sell unused items.

 

Earn Extra Money

You can find many gigs online to make extra money, from online job postings requiring you to transcribe audio or translate texts, all activities you can do at home in your own time. Look into tutoring if there are subjects you excel at and would like to share your knowledge with others. During your free time, you can look into different activities that can return some sort of financial return that you wouldn’t have otherwise gotten, and, again, the risk is non-existent. All you spend is your free time.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Questions

Popular Real Estate Glossary Terms

Degree of construction of residential property measured in number of units or dollar value. ...

Amount charged for each unit of rental property. An example of a unit might be square footage of space or an apartment. ...

Any lease with a specific starting time and a specific ending time. ...

Written agreement between two or more parties to extend the terms of a document. ...

In general terms, a licensee means a person or legal entity who has received authorization or permission to perform a particular activity through another party (the licensor in our case.) ...

Also know as Fannie Mae, the FNMA accept bids from approved lenders as to the amount, price and terms wish to sell Fannie Mae. Upon deciding how much money it will spend during a given time ...

A lender can be a private individual, a private or public group, or an institution that loans funds to a person or business that the lendee would later repay with interest in most cases. In ...

A fiduciary intermingling a clients funds or one who is entrusted with funds and groups them with those of his own. This practice is considered a breach of a fiduciary relationship and a ...

Same as term resale proceeds: Net amount received when property is sold. It equals the selling price less outstanding mortgage balance less all costs incurred in connection with the sale. ...