How To Make Money In A Recession: 22 Smart Tips for 2024

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When economic downturns hit, they can be unsettling, but they also offer unique opportunities to make money. Finding ways on how to make money in a recession can help you navigate financial uncertainty, especially by devising strategies for building wealth.

One great tip to start with is focusing on consumer staples; these are the products that people continue to buy, even during a recession. The consumer staples sector can offer a steady income stream while safeguarding against market volatility.

In this article, we’ll explore various asset classes, from investment properties to dividend stocks, that can offer a recession-proof income.

As we navigate through bear markets and bull markets alike, the key to a secure financial future lies in being all in when it comes to planning and risk tolerance. Let’s dive in!

What is a Recession?

A recession is a significant decline in economic activity that lasts for an extended period, often defined by two consecutive quarters of negative economic growth. During a recession, various sectors of the economy like financial markets, real estate, and consumer staples experience downturns.

Economic indicators such as GDP, employment rates, and retail sales drop, leading to rising unemployment and reduced cash flow for companies. Typically, a recession affects all asset classes, causing many investors to lose money and revisit their financial situation.

One of the defining features of a recession is that it impacts both individual and institutional balance sheets. Personal income generally drops, leading people to spend less money on living expenses, save less, or even dip into their savings accounts or emergency funds.

Companies, especially those with weaker balance sheets, may find it difficult to maintain a steady income and may need to cut costs or even face bankruptcy. Bear markets, where stock prices fall 20% or more from recent highs, are common during economic downturns.

However, a recession is not entirely negative; it also presents opportunities for financial growth and building wealth.

Savvy investors can buy undervalued assets like individual stocks, real estate properties, and index funds at discounted prices. It’s also a time when the value of different asset classes, like precious metals or the consumer staples sector, may remain more stable.

Financial advisors often recommend diversifying your investment portfolio and adopting strategies like dollar cost averaging to reduce risk and potentially make money during these challenging times.

1. Freelance Writing

In the face of economic downturns, freelance writing emerges as a recession-proof avenue for generating cash flow.

The demand for content—blogs, newsletters, and articles—usually remains steady even during bear markets, making it an asset class of its own. Platforms like Upwork and Freelancer are your gateway to a world where your writing skills can make money and lots of it.

They enable you to build strong balance sheets without breaking a sweat. It’s a game of leveraging your talents to create a steady income stream. It’s the best way to make money in a recession.

Strategies for Freelance Writing:

• Diversify Niches: The average recession sees a decline in certain industries but growth in others. Writing in various niches can protect you.
• Long-term Contracts: Lock in a steady income by seeking long-term writing gigs.
• SEO Know-how: SEO content often pays more. Knowing the basics can give you an edge.

Recommended tools:

• Grammarly: This writing tool helps you produce polished content, increasing your chances of landing high-paying gigs.
• Invoicely: Manage your freelance cash flow better with easy invoicing.
• Scrivener: This writing software helps you organize your projects and export them in multiple formats.

2. Digital Courses

Another way to make money in a recession is by creating digital courses. It’s an exceptional way to gain financial independence, especially when economic growth is sluggish.

Many investors are willing to invest in educational products, making this a profitable venture. Use platforms like Teachable or Udemy to package your expertise into a course.

This business model allows you to create an emergency fund from the comfort of your home, ensuring you’re financially stable during uncertain times.

Strategies for Digital Courses:

• High-quality Content: The better the course, the higher the price you can command.
• Limited-Time Offers: Create urgency by offering the course at a discount for a limited period.
• Affiliate Partnerships: Partner with well-vetted financial advisors or companies for cross-promotion.

Recommended tools:

• Camtasia: High-quality video editing software to create engaging course content.
• Mailchimp: For effective email marketing to promote your course.
• Kajabi: An all-in-one platform for hosting your digital course, offering better customization than many competitors.

3. E-commerce Dropshipping

E-commerce dropshipping can be your ticket to building wealth, even when economic activity is low. It’s one of the Superior Strategies to make money in a recession.

Unlike traditional retail models, dropshipping is less capital-intensive, allowing you to start investing with less money. The beauty is that you only purchase a product after making a sale.

This model often remains profitable because consumer staples are always in demand, recession or not.

Strategies for Ecommerce Dropshipping:

• Focus on Consumer Staples: In times of economic downturn, the consumer staples sector remains strong.
• Quality over Quantity: Partner with suppliers who have strong balance sheets to ensure product quality.
• Tighten Up Operations: Use software tools to monitor your cash flow and balance sheets meticulously.

Recommended tools:

• Shopify: The most user-friendly e-commerce platform to get your store up and running.
• Oberlo: A plug-in for sourcing products directly into your Shopify store.
• QuickBooks: For keeping track of sales, expenses, and overall financial health.

4. Stock Photography

Stock photography is often overlooked, but it’s a viable means of making money during recessions.

Your photos can serve various industries, from media outlets to companies needing marketing collateral. This creates a diversified income stream resistant to economic downturns.

Sites like Shutterstock enable you to sell high, while the investment in good photography equipment and editing software can be fairly low.

Strategies for Stock Photography:

• Diverse Portfolio: Aim to capture a broad range of subjects to attract a larger customer base.
• Quality Control: High-quality photos get higher prices and are more likely to be featured on platforms.
• Seasonal Updates: Keep your portfolio fresh by adding new images related to current events or seasons.

Recommended tools:

• Adobe Lightroom: Top-notch photo editing software for enhancing your images.
• Canon EOS 5D Mark IV: A reliable DSLR camera for professional-quality shots.
• PhotoShelter: An online platform that helps you manage and sell your photography.

5. Virtual Consulting

In the face of rising unemployment and economic downturns, virtual consulting offers a golden ticket to maintaining, and even increasing your income. It’s an Exceptional Method to make money in a recession.

You have expertise, whether in business, wellness, or technology—why not cash in? This venture can prove lucrative and you don’t need much investment upfront.

Virtual consulting allows you to diversify your asset classes, thereby contributing to a stronger balance sheet. It’s an all-in venture that puts you in the driving seat of your financial future.

Strategies for Virtual Consulting:

• Niche Specialization: Focus on areas where your advice is invaluable, particularly sectors resilient to economic downturns like consumer staples.
• Time-based Packages: Offer multiple consulting packages to appeal to different budgets and needs.
• Recurring Retainer: Lock clients into long-term relationships to ensure a steady income.

Recommended tools:

• Zoom Pro: The platform of choice for reliable, high-quality virtual consulting.
• Calendly: Appointment scheduling software to manage your consultations efficiently.
• FreshBooks: For hassle-free invoicing and payment collection.

6. Remote Customer Service

Even during bear markets, companies need customer service representatives. The job is often recession-proof because consumer staples sectors rarely see a significant decline in economic activity. An Excellent Strategy to make money in a recession.

Going remote lets you tap into the global job market, meaning you can make as much money as you’re willing to work for.

This approach helps you build a cushion, so you have an emergency fund if the recession hits hard.

Strategies for Remote Customer Service:

• Multi-Language Support: Offer customer service in multiple languages to attract a broader range of clients.
• Upsell and Cross-sell: Use your position to recommend additional products or services.
• Skill Upgrading: Take short courses to enhance your customer service abilities and market value.

Recommended tools:

• Headset (Logitech H390): Clear audio is essential in this line of work.
• Help Scout: Customer service software that enables you to manage multiple accounts.
• Ergonomic Chair (Steelcase Gesture): You’ll be sitting a lot; best make it comfortable and spine-friendly.

7. Affiliate Marketing

Affiliate marketing provides an effective way to generate passive income, especially useful during economic downturns.

Promoting products through your blog or website could end up making you more money than you think.

It’s one of the most effective means to make money in a recession as most companies love affiliate marketers who can tap into a consumer base they can’t reach. It’s a bull market strategy that pays dividends over time.

Strategies for Affiliate Marketing:

• Quality Over Quantity: Promote only products that you’ve vetted and believe in.
• SEO Optimization: Use keyword-rich content to drive organic traffic to your blog or website.
• Multiple Affiliate Networks: Don’t put all your eggs in one basket; diversify your affiliate programs.

Recommended tools:

• SEMrush: For optimizing your site’s SEO and staying ahead of your competition.
• Pretty Links Pro: For managing and tracking all your affiliate links in one place.
• ThirstyAffiliates: A WordPress plugin for effortlessly inserting affiliate links into your posts.

8. Podcasting

Podcasting is another avenue for generating income, and it’s not overly sensitive to market crashes.

A well-produced podcast can attract sponsorships, paid subscriptions, and even merchandise sales. It’s an asset class in itself, requiring an initial investment in good recording equipment and editing software.

A premier approach to making money in a recession, you create a long-term investment that, with consistency and quality, can assure you a steady income.

Strategies for Podcasting:

• Guest Appearances: Invite experts or well-known personalities in your podcast genre to attract a larger audience.
• Thematic Series: Create a series of episodes on trending topics to draw consistent listenership.
• Monetization Models: Experiment with different methods like ads, sponsorships, and listener donations.

Recommended tools:

• Shure SM7B Microphone: For professional-level sound quality.
• Adobe Audition: Comprehensive podcast editing software.
• Libsyn: Podcast hosting and distribution platform that also offers monetization options.

9. Digital Art and Design

If you’re creative at heart, don’t let economic downturns quash your spirit. One of the finest approaches to making money in a recession is Digital art and design, it is an asset class that often withstands market volatility.

Many companies still require logos, web designs, and custom artwork even during a recession.

Plus, the beauty of digital art is that you can sell it multiple times, enhancing your cash flow. It’s an all-in investment that can seriously buy your financial situation when times are tough.

Strategies for Digital Art and Design:

• Diversify Offerings: Don’t stick to one form of art; offer website designs, social media templates, and more.
• Subscription Model: Offer a monthly package where clients get X amount of designs or updates.
• Global Market: Use platforms that allow you to sell to an international audience to make as much money as possible.

Recommended tools:

• Adobe Creative Cloud: Get all the design tools you’ll need in one suite.
• Wacom Intuos Pro: An advanced drawing tablet for professionals.
• Shopify: If you decide to sell directly, Shopify offers great e-commerce options.

10. Virtual Assistance

In times of economic uncertainty, many businesses look to outsource tasks to maintain strong balance sheets. This is where virtual assistance shines.

You can offer services ranging from email management to scheduling and everything in between.

Being a virtual assistant allows you to make money without the commitment of working for one company, giving you a more recession-proof income.

Strategies for Virtual Assistance services:

• Niche Specialization: Focus on businesses in the consumer staples sector, as they are more stable during economic downturns.
• Retainer Contracts: Offer packages where businesses pay upfront for a set number of hours per month.
• Automate Tasks: Use software tools to automate routine tasks, maximizing your time for more clients.

Recommended tools:

• Asana: Task management software to keep everything organized.
• Mailchimp: For efficient email management and marketing.
• LastPass: Keep all your client’s passwords secure and easily accessible.

11. Sell Handmade Goods

Even during recessions, there’s a market for unique, high-quality items. Platforms like Etsy can be your best friend for reaching customers without the need for a physical store.

It’s another avenue for building wealth without putting all your eggs in one investment basket.

Strategies for Selling Handmade Goods:

• Limited Editions: Create limited edition items to generate urgency and exclusivity.
• Social Proof: Leverage reviews and testimonials to build trust.
• Cost Management: Keep a vigilant eye on production costs to maximize profits.

Recommended tools:

• QuickBooks: For tracking expenses, invoices, and profits.
• Canon EOS M50: For high-quality product photography.
• ShipStation: Efficiently manage all your shipping needs.

12. Social Media Management

During a recession, companies are keen to get as much value as they can from their budgets, often turning to social media to boost economic activity.

It’s a great time to offer your expertise in social media management, especially if you have a proven track record.

Unlike some asset classes that lose money during economic downturns, this area can actually flourish.

Strategies for Social Media Management:

• Performance Metrics: Utilize analytics to demonstrate the ROI of your services.
• Multi-Platform Expertise: Offer packages that span multiple social media platforms for better client retention.
• Content Calendar: Develop and maintain a rigorous posting schedule to keep the brand in the public eye.

Recommended tools:

• Hootsuite: For scheduling posts and tracking social media engagement.
• Canva Pro: For creating engaging visual content.
• Google Analytics: To provide comprehensive performance reports to your clients.

13. YouTube Channel

Are you an expert or passionate about something? Turn that into a YouTube channel to earn money through ad revenue and sponsorships.

Unlike many asset classes affected by bear markets, digital content can prove to be a sturdy bull market in an economic downturn.

The internet never sleeps, and you could be making money 24/7, which is a big plus for your financial future. Think of your channel as an all-in investment with room for a steady income and financial independence.

Strategies for your YouTube Channel:

• Evergreen Content: Create videos that have long-term relevance, as opposed to trending topics that fade quickly.
• Collaborate: Partner with companies in consumer staples or other recession-proof sectors.
• Monetization Methods: Apart from ad revenue, look into sponsorships and merchandise sales.

Recommended tools:

• Canon EOS M50: For high-quality video recording.
• Blue Yeti Microphone: For excellent audio capture.
• Final Cut Pro: For professional video editing.

14. Flipping Domain Names

In times of economic downturns, many investors are looking for unique opportunities outside of traditional investment accounts like stocks and real estate.

Flipping domain names can be an interesting venture. In essence, you’re buying domains at lower prices to sell high later.

It’s a specialized form of asset trading, less affected by the average recession and market crashes.

Strategies for Flipping Domain Names:

• Research: Use tools and economic research to find out what kind of domains are in demand.
• Buy Low: Use dollar cost averaging to purchase domains when they’re affordable.
• Market Timing: Sell when demand is high or when a particular industry is experiencing economic growth.

Recommended tools:

• Namecheap: Reliable service to purchase domains.
• Sedo: A secondary market to sell your domain names.
• Google Trends: To monitor the popularity of keywords in domain names.

15. Translate Documents

If you’re bilingual, this could be your recession-proof ticket. Companies often need translations to expand their global reach, even in economic downturns.

Translation services can be a way to maintain a strong balance sheet as you bring in as much money as possible without risking a lot.

Strategies for Translating Documents:

• Specialize: Focus on translating for financial markets or sectors that are less impacted by recessions.
• Efficiency Tools: Use software to speed up the process without compromising quality.
• Networking: Offer your services to vetted financial advisors who need translated documents for international clients.

Recommended tools:

• MemoQ: A highly recommended translation tool.
• Microsoft Word: Essential for text formatting and compatibility.
• Upwork: A platform to find clients who require translation services.

16. Rent Out Digital Assets

Digital assets like software licenses or even a unique social media handle can generate rental income.

Unlike physical rental property, these don’t get affected by fluctuating home prices. Consider this an alternative form of investment property that contributes to your net worth and personal income.

Strategies for Renting Out Digital Assets:

• Asset Portfolio: Have a mix of different types of digital assets for rent.
• Contractual Agreements: Make sure to have legally sound rental agreements.
• Demand Analysis: Keep an eye on financial news to understand what assets are in demand.

Recommended tools:

• DocuSign: For secure and legally binding e-signatures.
• Shopify: To list digital assets you’re renting out.
• Google Analytics: To track engagement and usage of your rented assets.

17. Online Tutoring

In the face of economic downturns, education remains a priority. Online tutoring can be your ticket to financial stability and building wealth.

Sites like VIPKid allow you to teach English or other subjects, providing you with a stable cash flow. As people are tightening their living expenses, online tutoring is often cheaper for students and allows them to make money.

This is an excellent way to not only boost your financial situation but also make a real difference in the lives of others.

Strategies for Online Tutoring:

• Subject Specialization: Focus on high-demand subjects that are recession-proof, like math or coding.
• Flexible Schedule: Workaround peak times for different time zones to maximize your earnings.
• Consult a Financial Advisor: To make the most of your income, consult vetted financial advisors on long-term investment strategies.

Recommended tools:

• Zoom Pro: For stable, high-quality virtual teaching sessions.
• Logitech HD Webcam: For clear video communication.
• Wacom Tablet: For interactive teaching, especially for subjects requiring diagrams and sketches.

18. Remote Real Estate Investment

Traditional real estate might be susceptible to market crashes, but remote real estate investment through platforms like Fundrise can offer you a diversified asset class that’s relatively resilient.

It’s a way of having your cake and eating it too; you invest in the real estate market but don’t manage the properties. It adds another layer of passive income to your financial future.

Strategies for Remote REITs:

• Diversification: Invest in multiple types of properties across various geographic locations.
• Recession-Proof Locations: Concentrate on areas where home prices are less volatile during recessions.
• Yield Strategy: Focus on properties that promise increasing dividends rather than just asset appreciation.

Recommended tools:

• Fundrise: An online platform for remote real estate investing.
• Real Estate ETFs: For additional diversification in real estate.
• YNAB (You Need A Budget): For tracking your investments and financial health.

19. SEO Services

During economic downturns, companies are all in on maximizing their online presence. This is where your expertise in SEO can come in handy.

Businesses want to appear at the top of search engine results, which is a kind of bull market within the bear market of an average recession.

Offering SEO services can not only make you more money but also make you an invaluable asset to any business.

Strategies for SEO Services:

• Content Strategy: Specialize in creating SEO content for sectors that are less affected by recessions, such as consumer staples.
• Reporting: Use analytics to provide clients with insights into their SEO performance.
• Financial Planning: Put a part of your earnings into an emergency fund to be financially stable.

Recommended tools:

• SEMrush: For comprehensive SEO analytics and reporting.
• Yoast SEO: A plugin for WordPress users to optimize website content.
• QuickBooks: For managing your business finances.

20. Peer-to-Peer Lending

Peer-to-peer lending platforms like Prosper and LendingClub offer a unique opportunity. You can lend money and earn interest, making it a fascinating addition to your investment accounts.

It’s a way to capitalize on others’ needs for credit without relying on traditional financial markets. A solid understanding of risk tolerance and interest rates can make this a rewarding experience.

Strategies for Peer-to-peer Lending:

• Risk Assessment: Evaluate the risk profiles of potential borrowers to mitigate the chance of losing money.
• Interest Rates: Use economic research to set competitive yet profitable interest rates.
• Asset Allocation: Diversify your lending to minimize risks associated with any single borrower or economic sector.

Recommended tools:

• Prosper: A peer-to-peer lending platform known for its risk assessment tools.
• LendingClub: Another platform with different types of loans to diversify your portfolio.
• Mint: To keep track of all your financial activities, including your peer-to-peer loans.

21. Curate Subscription Boxes

Creating subscription boxes can be an excellent way to build a steady income stream during economic downturns. Whether you specialize in gourmet food, books, or self-care items, curating high-quality, desirable products can keep the cash flow healthy.

Focusing on consumer staples ensures that your business remains recession-proof. By curating subscription boxes, you’re not only catering to a niche but also providing a service that delivers comfort and quality directly to people’s doors.

Strategies for Curating Subscription Boxes:

• Niche Focus: Double down on niches that are in demand during recessions, like self-care or essential food items.
• Strong Balance Sheets: Keep a tight rein on financials; this is not the time for splurging but for building a financially stable business.
• Consult Financial Advisors: Ensure that you’re investing your income wisely, be it in index funds, real estate, or other asset classes.

Recommended tools:

• Shopify: To set up an online store quickly and efficiently.
• Mailchimp: For managing subscriptions and email marketing.
• QuickBooks: For keeping track of your finances and cash flow.

22. Ghostwriting

During recessions, many investors and companies look for quality content to bolster their market position.

Ghostwriting can provide you with a steady income, especially if you specialize in high-demand subjects like financial markets, investing, or personal finance.

Because you’re behind the scenes, you’re less susceptible to the market’s fluctuations, making it easier for you to focus on building wealth without being too affected by economic downturns.

Strategies for Ghostwriting:

• Target Markets: Focus on sectors or companies with strong balance sheets and an eye for long-term investments, rather than those looking to make as much money as quickly as possible.
• Diversify: Don’t put all your eggs in one basket or, in this case, write only for one company. Diversification is key in bear markets.
• Emergency Fund: Like any freelancer, you should have an emergency fund. Save a portion of your income in a high-yield savings account to be better prepared for economic downturns.

Recommended tools:

• Grammarly: For proofreading and enhancing the quality of your writing.
• Dropbox: For securely sharing and storing large documents and files.
• FreshBooks: For easy invoicing and managing your personal income.

How To Make Money In A Recession: Summary

Navigating an economic downturn isn’t just about weathering the storm; it’s about capitalizing on unique opportunities for financial growth. By diversifying asset classes—from real estate to individual stocks and consumer staples—you can hedge against market risks and build a more robust financial future.

The key takeaway here is that a comprehensive strategy for building wealth incorporates multiple streams of income, including passive income and investment accounts. Strong balance sheets are essential, both for companies you invest in and for your personal finances.

Financial independence isn’t a far-off dream, even in the face of economic downturns. With the right planning, risk tolerance, and advice from vetted financial advisors, you can go all in to secure your financial situation.

In these uncertain times, being financially stable and having a well-thought-out emergency fund can make all the difference. The strategies we’ve discussed are more than just ways to make money; they’re pathways to long-term investments and financial freedom.

For those who are hungry for more tips on achieving financial independence and entrepreneurship, don’t miss out on our rich archive of articles and money-making ideas on the blog, such as,

• How to Make $100 a Day (and work from anywhere in the world)
• How to Use Chat GPT to Make Money: 10 Fun & Profitable Ways
• 16 Profitable Things to Make and Sell Online Today
• 10 Easy Side Hustles to Make Money Today

We’re here to empower you with the knowledge and tools you need to succeed, no matter what the economic landscape looks like.

Let’s invest in your financial future together.

How To Make Money In A Recession: FAQs

How can I make a lot of money in a recession?

Making a lot of money in a recession is not only possible but can be more attainable if you’re strategic. Diversifying asset classes is critical; this includes investing in individual stocks, real estate, and consumer staples. Building wealth through multiple income streams can fortify your financial situation and ensure a steady income.

What does a recession do to money?

A recession often results in declining economic activity, reduced consumer spending, and rising unemployment. Interest rates may fall, making it less lucrative to keep money in savings accounts. However, a downturn may create investment opportunities, especially in bear markets, for those with strong balance sheets and an emergency fund.

Can you make money investing during a recession?

Absolutely, many investors find recessions to be opportune times for investing in undervalued asset classes. With the right financial advisors and risk tolerance, you can take advantage of bear markets, buy low, and sell high later. Dollar-cost averaging into index funds or dividend stocks can be a smart strategy.

What gets cheaper in a recession?

During a recession, you’ll often find that home prices and interest rates go down. Consumer staples and some investment properties may also become more affordable. This makes it a potentially good time to invest if you have the financial independence and stability to do so.

Is it a good time to start a small business during a recession?

Starting a small business during a recession can be risky but also rewarding. Companies with strong balance sheets and a steady cash flow can often weather economic downturns and come out stronger. Make sure to conduct thorough economic research and consult vetted financial advisors before you go all in.

How do I protect my investments in a recession?

To recession-proof your investments, diversification is key. Avoid putting all your eggs in one basket, or one company, to minimize risk. Precious metals, real estate, and bonds are often considered safer long-term investments. Also, keep an eye on financial news to stay updated.

Can I benefit from a falling stock market?

Yes, a falling or “bear” stock market often presents opportunities to buy stocks at a lower cost. This is especially true for investors practicing dollar cost averaging or those looking to invest in dividend stocks with a history of increasing dividends.

Should I withdraw money from my retirement accounts?

While it might be tempting to withdraw money from retirement accounts like 401(k)s during an economic downturn, doing so could harm your financial future. It’s crucial to consult a financial advisor and weigh the long-term ramifications.

How can I cut living expenses during a recession?

Streamlining your living expenses can free up cash for investing or building an emergency fund. Cut back on non-essential spending and consider downgrading services you don’t need. Being financially stable can provide a buffer during times of economic hardship.

What should I do with my savings accounts during a recession?

Savings accounts may offer lower interest rates during a recession. Depending on your risk tolerance, you may want to consider other avenues for your money. Some people invest in mutual funds or exchange-traded funds (ETFs) to potentially earn more money.

How can I increase my net worth in a recession?

Increasing your net worth during a recession is possible by making smart investments and generating passive income. Real estate can be a particularly lucrative investment, especially with lower home prices. Balance your portfolio with a mix of asset classes to safeguard and grow your net worth.

How do I find reliable financial news during a recession?

Reliable financial news is critical for making informed decisions. Stick to reputable sources like Wall Street publications and websites like Yahoo Finance. These platforms provide up-to-date information and insights from experts in economic research.