Things may look bleak during a recession, but that doesn’t mean we have to stop making money. If you’re smart, you can find ways to keep your income flowing even when the economy is doing poorly. Even if you get laid off or lose money on the stock market, there are things you can do to get back on the right financial track. While it’s not likely that you’ll get rich during the recession, you don’t have to lose your shirt, either.
Starting a Recession-Proof Business
There is no specific list of recession-proof businesses. However, your best bet during a recession is start a business that offers a necessary product or service. Even during a recession, people still have to buy things like food and health care. Also, it’s important to keep your costs low when starting a business during an economic downturn. Promote your new business in ways that are free or inexpensive. Pass out flyers or business cards, give away free merchandise or advertise on free classified advertising websites.
Keeping Your Job During a Recession
A lot of people get laid off during a recession, but you don’t have to be one of them. After all, if companies laid off all their employees, they couldn’t stay in business. Make certain that you know exactly what your employer expects you to do, then do it consistently. Go beyond the call of duty whenever possible. Learn what your company’s needs are, what problems it’s experiencing and where its deficits lie. Then do whatever it takes to help your company survive and thrive during the recession.
Getting a Job During a Recession
You may have to submit more resumes and go on more interviews, but it is possible to get a new job when the economy is bad. The best job to get in a recession is one that you’re truly qualified for. Apply your current job skills to a new industry that has enough staying power to survive the recession. Industries that experts consider recession-proof include education, the environmental sciences, health care, security and the government.
Investing During a Recession
It can be difficult to make money on investments during a recession, because interest rates are lower than during a good economy. However, stock prices can fall significantly in a recession, so this may be the best time to invest in mutual funds. A recession is also a good time to buy penny stocks (low priced stocks.) Penny stocks are typically much riskier than blue chip stocks, but the return can be much greater. Make sure you do your homework before you invest. If you can’t afford to lose money, go with the tried and true investments, even if the prices per share are higher.
Also, you can make money trading currency on the foreign exchange market (Forex) or trading commodities futures regardless of whether prices are falling (a bear market) or rising (a bull market). However, it’s important to remember that this type of trading is also very risky and can result in loss.
Regardless of how you choose to make money in a bad economy, it’s important to save money. Put away every extra dollar that you can afford not to spend. If possible, save 10% or more of your gross income each time you get paid. With plenty of money in the bank, you won’t be as affected by an economic slump as you would with no money saved at all.
“Introduction to Trading Forex” ForexTrading.com
Bruce Babcock, “Commodity Futures Trading for Beginners” RB-Trading.com
Richard Burton, “How to Invest in Penny Stocks and Make a Killing” Reuters.com