When your local economy is going through a recession, you may find it difficult to imagine how it’s possible to earn money during such a difficult period. But the truth is, it’s highly doable. An economic downturn may affect the job market, but you can also find new opportunities to address unprecedented needs.
Making money or earning an income doesn’t end when the economy is going through rough times. If anything, it’s during this period that you should even become more motivated to look for or create new opportunities. When you continue earning, the economy also enjoys the benefits of the effort you put in.
That said, here are four of the best strategic tips you can apply to generate more income during an economic downturn.
- Have Additional Passive Income
If you’ve got real estate investments from the past, now’s also a good time for you to rethink the way you’re handling these investments. For example, if your rates are too expensive and therefore driving tenants away, then you may want to lower it for now that the economy is bad.
Remember that real estate will always be in demand, so there’ll always be people looking for homes and rentals. But this doesn’t mean that these renters aren’t going to look for more affordable or friendlier rates.
Also, you may want to diversify your properties. Get a good property management company to help you along this line, if you don’t know where and how to begin. Ask yourself if your house is too big and you’ve got three extra bedrooms unused? Or perhaps there’s a shed you can convert into a guest house? There are little changes you can do to make the most out of your property, and it’s best to maximize their uses right away.
- Open A Certificate Of Deposit
If you’ve got some extra money right now that you don’t have an intention of using in the near future, you can put these into what’s known as a Certificate of Deposit (CD).
CDs are bank instruments that generally offer premium interest rates. Typically, the interest rates for CDs are higher than an ordinary savings account, but that’s because you can’t touch it for a predetermined period.
While most banks usually require a huge minimum account to open a CD, there are those that can give you a generous start at just $500 USD. The holding period may vary from bank to bank as well, but usually, the shortest period is one year.
This is a good way of generating income during a recession. Apart from setting aside that money, you’re also giving it room to grow—value-wise. The significant interest it gains over time can help you get through economic troubles.
- Sell Stuff Online
During an economic downturn, you may have taken the time to reassess your finances and assets. By now, you’ve come face-to-face with the fact that you have a surplus of things that are just sitting idly at home—adding up to the clutter. There could be items you haven’t used anymore, or that you won’t even get to use anymore. Or there could be purchases that you made on a whim because they were on sale, but you just end up using them once or twice since then.
Rather than leave these items at home to collect dust, why not make money out of them. Put them up for sale! While you may not be able to get back a full 100% return on the original selling price, that’s still better than nothing.
Besides, if you have more things to dispose of, the total sales you can get might surprise you. You’ll also find that there are a lot of people online who are constantly looking to shop for secondhand items. But before sifting through your stuff, a good rule of thumb is to collate items that you haven’t touched in the past year and then determine which ones would be most valuable.
- Look For Heavily Discounted Stocks
Another thing that you should take advantage of during an economic downturn is that companies are going to discount a lot of their stocks. This is because they’d rather make it more accessible to the general public at a lower price than to have no investors at all.
So, if you know how to play your way around stocks, an economic downturn is actually a good time to invest in stocks simply because they’re priced competitively. Eventually once the stock or economy recovers, you’ll begin to enjoy the benefits coming from the rapid growth of your stock value.
With these income-generating ideas, you no longer have to worry about your finances during a recession. For as long as you’re financially strategic and savvy with your finances, you can successfully navigate through the difficulties of an economic downturn. In effect, you’re not just helping your personal finances, but you’re also helping the local economy recover faster as well.