When the markets experience a downturn, it doesn’t mean you’re destined to make less money. In fact, many successful businesses were started during the last 2008 recession. Airbnb, Venmo, WhatsApp, Groupon, and Uber were all started in 2008 or 2009 and represent billionaire-dollar businesses today. With that said, in order to make money as an individual during a market downturn, you’ll need to be inventive, hardworking, and strategic. Below, we’ve gathered some of the best ways to earn money and create multiple streams of revenue you can count on far into the future.
Make money off your hobby
If you’re artistic or have another skill that you can monetize, this is a great time to do it. Here are some ideas to make the most of your hobby and turn it into a side hustle that brings in additional income:
- Join a freelancing site: Are you a writer or graphic designer? If so, there are plenty of freelancing sites that offer ways to make extra money. You can take on as much or as little extra work you want. It’s a good idea to spend time putting together a portfolio before joining a freelancing platform. A portfolio is an excellent way to show prospective clients your skillset and past work.
- Tutor online: If you have an advanced degree in a certain subject, you can put your knowledge to good use by tutoring students online. A good starting place to look for tutoring jobs is Tutor.com.
- Consult with local companies: If you’ve been in your industry for a while, consulting is a great way to make extra money. You can charge an hourly fee or even be on a corporate retainer so that your expertise can be used on an as-needed basis.
- Set up an online shop: If you crochet, embroider, paint, or otherwise make art, it might be time to make the jump to setting up an online storefront. Before you make this commitment, make sure you gauge interest first to ensure that you have a pool of potential customers.
You might be intimidated by the concept of investing, but it’s actually quite simple. With that said, there is an inherent risk involved in any kind of investment, so it’s still important to be careful. Stocks for beginners can include mutual funds or indexes that are designed for long, slow growth over more volatile, short-term gains and losses.
Put your money in a CD account
If you have savings but your money isn’t in a high-yield savings account already, you may want to consider putting part or all of your savings in a Certificate of Deposit account. CDs often boast higher yield rates than traditional savings accounts, but your money is less accessible.
Term lengths for a CD account can be a few days to as long as a decade, but standard lengths are typically between three months and five years. It’s important to remember that the term length determines the amount of time that you can’t touch the money you have in the account.
Become a courier or gig driver
The gig economy makes it easy for you to pick up jobs when and where you want. If you have a car that gets great gas mileage, consider signing up on Uber and Lyft to make extra money. If you don’t have a car but you have a bike you can also make additional money becoming a bike courier. Many apps like Postmates or DoorDash offer courier options and in some highly congested cities, it’s faster so you can take on more orders (and make more money).
Takeaways: Making money during a recession
Although the constant parade of bad news can be seriously depressing, there are plenty of ways to make money despite the economic conditions. You might have to be a little bit more inventive with how you do it, but the opportunities for extra income are still there. Start by trying to save a little extra money so you can place those funds in a CD or a low-risk investment that you don’t touch. Or, consider taking on a job in the gig economy or monetizing a hobby. With this list as your guide, you can find a way to create extra money for you and your family.