How to Make Money During a Recession – 13 Tips for a Financial Downturn ?

Roshni Khatri

30th Jun'22
How to Make Money During a Recession – 13 Tips for a Financial Downturn ? | OpenGrowth

The economy of a nation determines the future and growth of its citizens.”

The phrase shows that economy is the most integral part of the development of a nation and its citizens as well. There can be ups and downs in an economy and these affect the earning and investment levels of the nation. Moreover it is important to create emergency funds to cope with the issues of recession. Here we would discuss recession, it is the economic hardship that reflects the slowdown of the economy. This moment is ghastly and is risky too as businesses collapse and people lose their employment. 

You might be familiar with this situation, as during a recession the companies cut their staff and the prices of the stock market fall. In short, the liquidity of the funds reduces in the market. Thus recession is part of the economic cycle of expansion and contraction. 


Tips for Making Money 

Majorly people find the recession’s situation intricate, as they lose their earning sources. If you have enough savings and liquid funds then you can invest in those during the recession. But if you do not have sufficient funds then you have to be cautious and take some prime steps to sustain in slower economic conditions. Here we would discuss the tips for making money during the recession. Have a look!


1. Safeguard Your Earning Sources

If you lose your source of income then it might be possible that you can spend your savings on finding new jobs. So you have to secure your job first and if you are in business then you have to ensure its future growth. Besides this, you have to be cautious about your job role and the financial stability of the employer. 

If you find any doubt then change the employer and start finding a new job in the same industry. With this, you can switch your profile also by getting enrolled in an industry that has more scope. You can also start the side sources of income like starting a side gig and other side businesses at a small level.

Safeguard earning sources

2. Enhance Savings

To overcome the challenges of the recession you have to save a substantial part of your income every month. You can do this by making a list of your expenses such as house rent, car payments, insurance premiums and even small expenses made on groceries. At the end of the month, you do the total of all these expenditures and check if there is any item that can be reduced from the list. In other words, this list will provide you with the data on the expenses that have been made and also give you an outlook of the useless expenditures. This will help you in increasing your savings. 


3. Investments

We probably invest our sums in short-term and long-term plans. So you have to keep a constant eye on your short-term investments and if you find this risky then you can move the money to safer harbors. Such as precious metals, dividends, stock market and many more. As far as long-term investments such as a long-term property investment are considered you can seek the asset during the recession as the prices are low and keep it as your long-term asset.  


4. Investing in Discounted Stocks

In a recession, the prices of the stocks fall. You can invest in the highly discounted stocks that provide you diversification among funds that you can buy at deeper discounts.The stock values vary every six months, and if the stock market is rising, you can sell your shares or keep them. With this you should also know about SLBM stock lending and borrowing mechanism as it can help you in coping with the challenges of recession. 

5. Track Your Net worth

Checking your net worth every month is beneficial for you as it motivates you to keep the good financial habits of savings and investing. So this is the most important tool for making money during a recession. In the short term, you may not see good results but in the long term, you would surely get the desired outcomes.


6. Plan for Future

To get over the challenges of the recession you should make the proper planning of investing and earning. It is not good to make financial decisions suddenly, therefore you should take time and then plan the future according to the present financial and market state.

7. Work on Your 401(k) Contributions

It is observed that some investors pause their 401(k) contributions during the recession. It is not a good move as you are supposed to lean into discounted stock prices and maximize your retirement plan contributions. 


8. Generate Passive Income

You can opt for the tools of creating incomes through passive investing and can cover living expenses. This would make your day job optional and would enhance your financial independence. Besides this, it would enable you to pursue your dream work regardless of its paying structures. You no longer have to pay for the costs of life insurance and disability insurance. 

9. Buying Investment Properties

You know that during the recession the housing market does not fall as speedily as the stock market. So if you are investing in real estate then you can have a great deal even in the slowdown of the economy. The logic behind this is that the prices of the homes can fall but the rent doesn’t fall.

Buying investment property

10. Selling the unused Stuff

 It is the most common and easy step that can help you in making money during a recession. You can sell your stuff on e-commerce platforms like eBay and Amazon. It would bring you slight liquidity.

11. Move into Survival Mode

During the recession, you have to change your mindset as the money-making concept starts from there. So you have to keep a thought in mind of “spend less and earn more”. In short, your pocket should know that the things are not the same again and it needs a different way to move.


12. Go-Liquid

A recession is not the time to level the money in banks or in the hands of the people from which it is complicated to collect. Take cash as it ensures that you are more protective of systematic failures.

13. Buying a Business

During a recession, you have the chance to buy a business that is in loss or not in a good state. Thus buying a new business and investing cash in it can be the best way to keep the business and former owners float. In this way, you save good businesses and make money.

Thus it can be said that the government and the industries both have to work for bridging economic opportunities during the recession. Besides this, they must focus on the elements which boost economic growth.

Final Say

Being positive and calm is the best policy to win over the challenges of the recession. Although we all know that the recession is the worst situation that stops the market movements and flow of the cash. Still, we need to be patient and work according to the needs and demands of the situation. Most people get shattered during the slowdown of the economy by selling the stock and real estate but that is the time to do something innovative and opposite of it. 

Thus be innovative and look forward to availing the opportunities during the recessions.


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A keen observer, who loves to spend time with nature. A fun loving person, enjoys to explore the new aspects of life. Passionate about reading and learning new things. Roshni is dedicated towards her work and has worked in different professions.