A potential recession in 2023 is something we’re all a little worried about happening.
From gas prices being severely high throughout the year to groceries blowing out budgets, finding ways to save money is a high priority for many.
And some are even preparing and researching how to make money during a recession.
You never know what might happen in life, from job firings to changing circumstances. So, it’s always beneficial to start preparing for significant changes that could impact your finances during a recession.
Table of Contents
What are 10 ways to make money during a recession?
It’s easy to feel like there’s nothing you can do to save money during a recession, but it’s certainly possible. Different tools and resources available at your fingertips can be tapped into and allow you to save in a myriad of ways.
Here are ten potential ways to make money during a recession:
- Sell items you don’t need: Declutter your home or office and make some extra money by selling items you don’t need or use any longer. You can sell things on online marketplaces, at garage sales, or through local classified ads. Part with anything that isn’t positively contributing to your life and make extra cash by selling to a new owner.
- Offer freelance services: If you have a skill or expertise in demand, consider offering your services as a freelancer. This can be a great way to earn extra income during a recession. Do you know how to write? Are you super knowledgeable about a particular subject? Many people have skills and information retained from trade schools and other forms of education that might be valuable as a freelance service.
- Rent a room in your home: If you have an extra space or room in your home, consider renting it out on a short-term basis. You can use sites like Airbnb to find potential renters. Renting out a room will help you to pay your mortgage each month while keeping more cash in your wallet and savings.
- Get a part-time job: If you can work, consider getting a part-time job to help supplement your income. Many businesses and industries are still hiring during a recession, so finding a job that fits your schedule and needs may be possible.
- Start a small business or side hustle: This can be a fantastic way to generate income during a recession, especially if you have a skill or talent that can be turned into a service. Are you good at cleaning houses? Have woodworking equipment and skills? Brainstorm ways to offer value to potential customers to see where you might have an easy opportunity to build out a new small business or side hustle.
- Cut back on expenses: One of the best ways to save your money during a recession is to cut back on your costs and expenses. Take a very close look at your personal budget and see the ways you can trim the fat. Most people have various online subscription services that you can cancel and auto-renewals for discontinuing.
- Sell your skills and talents: If you have a skill or talent others would be willing to pay for, consider offering your services for a fee. This could be anything from tutoring to painting to playing music.
- Invest cash in the stock market: If you have extra money, consider putting it into the stock market. While there are no guarantees, investing in the stock market during a recession can be an good way to make some money over the long term. Be sure to consult first with a financial advisor before making major investment decisions, as you’re subject to lose any time you participate in the stock market.
- Start a blog: If you have a passion or some kind of expertise in a particular subject, consider starting a blog. You can monetize your blog through various forms of advertising, affiliate marketing, or selling digital or physical products.
- Start a YouTube channel: Similar to starting a blog, if you have a talent or passion that you can share with others, consider creating a YouTube channel. You can monetize your YouTube channel through advertising, sponsorships, and other income streams.
Ultimately, it would help if you focused on bringing in more money than you spend throughout each month, as this will bring you out on top and in the positive by the time you reach the end of a full year.
How much money should I start saving for a recession?
The amount of money you should start saving for a recession depends on several factors, including your current financial situation, savings goals, and plans for dealing with a potential recession and slowdown.
Here are a few general recommendations to consider:
- Start by assessing your current financial situation. Determine how much money you have in savings and how much you can reasonably save each month.
- Next, consider your savings goals and plans for dealing with a recession. Do you want enough money to cover a certain number of months of expenses, or do you happen to have a certain savings goal in mind, such as buying a house or retiring?
- Based on your current situation and savings goals, identify how much money you might need to save to meet your goals and be prepared for a potential recession.
- Consider setting up automatic savings transfers from your checking account to your savings account to help you save regularly and reach your savings goals.
- Finally, review your savings plan periodically to ensure you are on the right track to reach your goals and adjust your plan as needed.
The amount of money needed to save for a recession will vary depending on your individual situation and goals. By assessing your current financial situation and setting savings goals, you can determine the right amount of money to save to be prepared for a potential recession.
What are marketing ideas for a business during a recession?
Marketing during a recession can be challenging, but there are still ways that businesses can promote their products and services effectively.
Some ideas include:
- Focusing on value: During a recession, many consumers are searching for the best ways to save money and get the most value for their money. Businesses can capitalize on this by promoting the value of their products and services, such as by offering discounts or special deals.
- Highlighting the benefits: Instead of focusing solely on the features of their products and services, businesses can also highlight the benefits that they offer. For example, they can promote the convenience, efficiency, or cost savings that their products and services can provide.
- Connecting with customers: In times of economic uncertainty, customers are sometimes more likely to respond to businesses that can connect with them emotionally. Companies can use marketing techniques such as storytelling or personal anecdotes to create a more personal connection with their audience.
- Leveraging digital marketing: In a recession, many businesses may have to tighten their budgets, which can make traditional forms of advertising, such as print or TV ads, less feasible. Digital marketing can be an effective and cost-efficient way to reach potential customers. Businesses can use a variety of tactics, such as social media, email marketing, or content marketing, to promote their products and services online.
- Collaborating with other businesses: During a recession, businesses may benefit from collaborating with other businesses by offering joint promotions or cross-promoting each other’s products and services. This can help companies to reach a wider audience and generate more exposure for their brand.
Although a recession is a shaky and challenging time for many, remember to stay calm and immediately use what’s available to you to improve your financial situation.
Apart from your pursuits and saving mechanisms, be honest and open with your friends and family. Consider banding together to further amplify your available resources for potential cash savings and money growth, even during a recession.
Know your worth, offer reasonable skills and services to the public, and be creative in saving.
