This article is not about the best advice for how to start a business and make money in a poor economy. This is about the common-sense financial tips for entrepreneurs and small business owners that will help you come out on top during a tough and poor economy. No empty promises, no pie-in-the-sky stuff. Just sensible steps you can take immediately to turn things around and take care of your business.
How to make money in a poor economy? Making money is an art, an art not everyone can master pair that with the fact that after the pandemic hit the world, the economy continued to get worse and worse, and making money has gotten even harder.
Throughout 2022, global inflation levels are expected to rise by another 6.5 percent which means that even people that are doing okay will need to figure out their finances soon enough. But the problem is it can seem impossible to make money when the economy is so bad that it feels like it is leeching money away from you.
well, that is not really the case because in this article we will be taking a closer look at 15 ways anyone can make money even in a poor economy.
Make Money In A Poor Economy: Cut Your Expenses To The Bone.
It's time to cut your expenses to the bone.
The best thing you can do is reduce, reduce, reduce. Cut back all your expenses as much as possible. Think of it as a game: How much can I cut back? The more you cut, the better off you will be in the long run.
Here are some suggestions for ways that you can cut back on expenses:
1. Cut out non-essential purchases: If there's something that is not a necessity, then don't buy it! This includes things like expensive coffee drinks, going out for dinner, buying new clothes when the old ones still fit fine... the list goes on and on!
You should also look into getting rid of cable TV, which can cost up to $100 per month. If you're not watching much television anyway, this may not matter much to you. But if you're spending $100 per month on cable TV only because there's nothing else to do, then why are you paying for it?
2. Make sure your bills are paid off on time every month: This includes credit card debt and other loans where interest may be accumulating if payments aren't made on time every month (or even worse—if they're only made when the minimum payment is due).
If you have any credit card debt, pay that off immediately. It would be better to stick it out and pay $500 in interest than to spend $500 on groceries or clothes that won't be needed for a while.
3. Switch from premium cable channels or satellite TV programming to basic cable: get rid of any subscriptions that aren't necessary — especially ones that charge automatically from your checking account. Many people don't realize how many automatic subscriptions they have until they go through their bank statements carefully!
Make Money In A Poor Economy: Work Hard--No Matter What The Economy Is Doing.
No matter what is going on in the economy, there are opportunities for the hard-working entrepreneur.
The recession has impacted everyone, but it's important to remember that it hasn't affected everyone equally. The wealthy and powerful have been able to find ways to protect themselves from the worst effects of the economic downturn — they've been able to protect their assets and keep their jobs.
The rest of us, however, have had to adjust our expectations and make sacrifices. We've had to tighten our belts and do without some things we used to take for granted.
But there are still opportunities out there for those who are willing to put in the time and effort required to make a business successful — even during tough economic times like these.
Live at home if you are single to save money on rent and shared living expenses.
The decision to move out of your parents' home, or the decision to stay there, is a personal one. But as you weigh the options, it's important to consider how moving out will affect your finances.
If you're single, staying in your parents' home can save you money on rent and shared living expenses for an apartment or house. If you have a roommate, this could be especially advantageous.
If you have children and live with your parents, it may be more difficult to save money by staying at home because childcare costs are likely to rise. However, if you live close enough to work (or work from home), staying at home can help keep childcare costs down.
It's important to consider all aspects of moving out before making a final decision.
If you're married or in a committed relationship
If you're married or in a long-term relationship, it's usually better for both partners to live together rather than separately. You'll be able to pool your resources and split costs, which can make life a lot easier. If one partner has a good job but the other doesn't, it may also make sense for them to move close to where the partner works so they can commute together every day (or vice versa).
Make Money In A Poor Economy: Avoid Debt At All Costs.
Debt is a problem. It's a problem for people who have it, for people who don't have it, and for the economy as a whole.
The most important thing you can do to avoid debt is to not get into it in the first place. If you're already in debt, then your options are more limited: You either need to pay it off or find ways to avoid paying more interest on top of it.
If you're trying to get out of debt, then try these tips:
Make a budget. Figure out how much money you bring in each month and how much you spend every month. Then figure out where you can cut back on spending and where you can increase income — perhaps by starting a side hustle or doing some freelance work on the weekends.
Try not to take out any new loans until your debt is paid off completely — and don't take out any credit cards unless they're absolutely necessary (like if there's an emergency).
Invest your extra funds in assets that provide returns or buy stocks and mutual funds that pay dividends.
If you've got some extra cash sitting around, you don't want to just throw it in a savings account. You need to invest it wisely so that it works hard for you and earns interest while you're sleeping (or working).
Investing your extra funds wisely by buying assets that provide a return or buying stocks and mutual funds that pay dividends can help you build wealth over time.
Here are some ways to invest:
Invest in real estate. If you're looking for long-term growth, real estate is a good option — but only if you're willing to put in the time and effort required to become an expert on the market and manage properties well. If you're interested in real estate as an investment opportunity, consider hiring a professional who will handle most of the work while providing guidance along the way.
Invest in stocks or mutual funds. Stocks and mutual funds are some of the most popular investments because they offer the potential for growth over time with relatively low risk compared to other options (for example, owning individual companies). Although these investments may fluctuate greatly in value from year to year, their returns tend to be consistent over long periods of time.
Keep an emergency fund equal to three months of expenses in a safe place, such as a savings account or money market fund.
An emergency fund is a pool of money set aside for unexpected costs. It's important to have a dedicated emergency fund because unexpected expenses can put you in a financial bind and cause you to borrow from other sources, such as credit cards or high-interest loans.
"Having an emergency fund can help you avoid taking on high-interest debt, such as credit cards or payday loans," says Talbott. "It's also critical in case of job loss or other financial emergencies."
The size of your emergency fund should be enough to cover three to six months' worth of living expenses. The exact amount depends on several factors, including your current income and debt obligations, but the general rule is that the fund should be large enough so that you don't have to touch it for any reason other than an emergency.
After you've built up some savings, keep an emergency fund equal to three months' worth of expenses in an easily accessible account — such as a savings account or money market fund — so that it's available if you need it.
Different Ways To Make Money In A Poor Economy
Make Money In A Poor Economy #1: Become A Billboard
That might sound kind of silly, but we mean really becoming a walking billboard. Even though lots of companies use digital marketing these days, there are still plenty of them that use more traditional, direct modes of marketing heavily.
In addition, some are using cars as moving billboards. You can reach out to companies in your area that use wrapped cars for advertising and sign up that way you can go on using your car as you would otherwise but you'll be able to make a little money on the side.
Make Money In A Poor Economy #2: Start An Etsy Store
Not everyone in the world is crafty but those who do possess this skill can monetize it very easily. Platforms like Etsy allow you to take your little arts and crafts hobby and turn it into an actual money-making opportunity.
You can create your pieces whatever they may be, create an Etsy store and list them there. You could even do vintage items if you're not so crafty if there's someone out there looking for something that you're selling, they'll place an order and you can sell your product without ever having to get there and find a client.
This can be done over Instagram and by joining relevant Facebook groups too but those methods will require a lot more time and effort.
Customers on Etsy are already looking to buy you just have to list something that they're looking for and you're set.
Make Money In A Poor Economy #3: Freelance Your Day Job Skills
Arts and crafts might not be everyone's forte but most of us do hold a day job right now. Not all day jobs are super fancy, you might be a locksmith, a professional organizer, a hairdresser even a home care provider, whatever it may be it's something you do for a living so you've got to be kind of good at it.
Well, one thing about day jobs is you can only make a set amount of money in your set hours but since you're gaining experience along the way, it's usually still worth it that experience can be used to take up extra gigs on a freelance basis.
You would be doing the exact same thing you do in your day job but you'll make instant money on the side. This is great for people whose companies don't offer overtime. You can also post your skills on Craigslist, a local freelancing website, or even put up signs to advertise what you're offering on a community billboard.
Either way, you'll be able to make some extra money doing the same thing you already do every day so even if your salary doesn't rise at your day job, you'll still make a little extra money.
Make Money In A Poor Economy #4: Take Advantage Of The Situation
Now, this might sound a little bit crass but it's just simple economics. The world works on the concept of supply and demand. Whenever something in the world shifts, new demands open up and that creates room for more suppliers to come in and fill the gap.
Take the rain for example in countries like Malaysia, it can rain at any point in the day at random there are umbrella sellers always waiting around for the rain to strike, and when it does they pop up with their grab-and-go umbrellas so people that didn't come prepared can shield themselves from the weather.
There's instant demand and instant supply so take a look at the world around you in your immediate vicinity and ask yourself what do people need right now then fill that demand, whether that's face masks, umbrellas, lemonade on a hot summer day, whatever the situation maybe there's always going to be something that you can do to take advantage of it.
Make Money In A Poor Economy #5: Pick Up Another Job
The world has already gone through a few recessions by now and one piece of advice that always comes around is the classic "pick up another job advice". Now back in the day, this meant you actually had to get out there and get another physically taxing job and while that would pay you, it also required lots of extra physical effort which wouldn't be sustainable in the long run.
However, with the onset of the internet, you can pick up an extra job anywhere in the world and get it done from home. If you're good at a particular subject, you could tutor someone online for an hour a day, if you're good at social media, you could become a social media manager.
Remote jobs allow you to make money in a poor economy without having to put in lots of physical effort or relocate.
Make Money In A Poor Economy #6: Set Up An Airbnb
If you've got an extra room in your house why not use it to make money in a bad economy. As bad as things get sometimes there are always people that travel around some for leisure some for necessity and what every traveler need is a place to stay.
In the old days, you would have had to spend thousands if not millions of dollars to set up a guest house that would maybe someday bring in a profit, today that vacant room can be an instant money-making machine.
Sign up on Airbnb or list your home for rent anywhere online and make money every time someone passing through takes you up on your offer.
Make Money In A Poor Economy #7: Become An Amazon Reseller or Drop Shipper
Amazon is not just a place where you can buy anything you want, it's also a place where you can sell just about anything and that means you can even list something for sale on Amazon and use it to sell and this doesn't mean you have to buy tons of inventory to sell something.
You could even try out dropshipping. With dropshipping, you list items on your store that you don't even have yet so there's no physical inventory to keep, your customers place an order on your Amazon store and you place an order with your manufacturer who then ships the item directly to your customers.
The way you make money here is by marking up the price on the product ever so slightly since you won't be paying for the shipping or the costs to maintain inventory your entire markup is the profit.
Make Money In A Poor Economy #8: Make Money Off Used Goods
The car market might not be doing so well all the time but the used car market is almost always booming. No matter where you live, you probably have at least one great car showroom that sells used cars nearby and that is the perfect ground for you to make some money.
All you have to do is save up enough to buy one used car. Go for something that's got a little bit of room to be fixed up, then fix it up and sell it at a higher price. The restored version is bound to make a lot more money than you paid for it.
This concept can be used in pretty much any industry, shoes, bags, phones, pretty much anything at all. Just buy as cheap as you can and sell it for a profit and you'll be making money regardless of how the economy is doing.
Make Money In A Poor Economy #9: Set Up An Online Garage Sale
A lot of us are hoarders in one way or another even if we don't want to admit it from collecting way too many pokemon cards to never letting go of a pair of shoes that obviously don't fit, there's something we are all holding onto.
If a regular garage sale isn't your style you can hold one online and get rid of things just collecting dust in your house and transform that dust into money. This can be done through apps like Poshmark or simply by posting your things on your social media accounts and seeing if anyone would be willing to pay for them, that way you can clean out your closets and make some money too.
Make Money In A Poor Economy #10: Deliveries
No matter what's going on in the world people have got to eat, that's a non-negotiable it's going to be prevalent everywhere all the time. You might be thinking how can that benefit me? well, it is easy in order for the food to actually make it to the people that need it someone needs to get it there and you can easily be that someone.
With platforms like Uber, you can easily sign up to be an uber eats driver, hand people their meals, and make money in the process, and the great thing about this is you don't really need to quit your day job or put in long strenuous hours. Just pick up a few hours here and there and you'll still make some decent cash.
Make Money In A Poor Economy #11: Write Online
These days, it feels like we're living in two different worlds. One is the physical world and the other is the online world. While we might be able to get by just fine in the physical world on our own, the world online is endless, and if you have a knack for writing you can find your own place in the massive world too.
Since most of the internet needs people to convey their message through words you can sign up on any writing platform and get hired to write online, and one of the best parts about this is you can work for anyone from any part of the world and earn money.
You can do it from home or you could take the nomadic freelancing route and do it from anywhere. If you're good at writing, this is an opportunity you should not pass up.
Make Money In A Poor Economy #12: Become a virtual assistant
There are lots of people in the world who are so busy that don't even have time to plan out their day, on the other hand, some people are a little too good at organizing things and if you're the latter you can easily become someone's virtual assistant.
These jobs exist online and you don't even need to be in the same country as your employer. All you have to do is make sure their meetings are lined up, emails are sent, and errands are organized. They will walk you through everything they need to get done and you can do it all online.
It is a quick and easy way to make money no matter where you are or how the economy is doing.
Make Money In A Poor Economy #13: Online Mock Juror
Jury duty might seem like a chore but it pays pretty well to be an online mock juror.
Legal teams like to use mock juries to get a feel of how strong their case really is.
The job here is fairly easy. Just sign up and go over the case documents and help out in the ways they need. You will be paid for your time and the work is just to form an opinion about everything that you've heard.
Make Money In A Poor Economy #14: Use Your Listening Skills
Not everyone is a good listener but those that are can use their listening skills to their advantage. There are several companies out there that need people to transcribe their audio and video files into words, and these files could be anything from lectures or seminars to simple youtube videos. All you have to do is listen, type and watch money land in your bank account.
Make Money In A Poor Economy #15: Teach What You Know If You Are Good At Something.
one of the best ways to make money is by teaching others how to be good at that something too.
Makeup classes, cooking classes, art classes, the opportunities are endless as long as there's something that you're great at. It can be something you can teach to someone else whether that's in person or online, that way you'll be helping them to learn something new and make money regardless of how the economy is doing.
Final Takeaway: Make Money In A Poor Economy
Sometimes our best chance is to learn from those who know what they're doing. The world economy is building a giant crack in the road, and another recession might be on the horizon. But if you do it right, you can turn this economy into one of your greatest assets. All it takes is a little foresight and solid knowledge of how to use the rules to your advantage. Whether you're looking for your first job, a promotion, or are trying to get your business off the ground there are some things you can do to make money in a poor economy.
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