10 Ways to Make Extra Money During a Recession

We tend to view recessions as being synonymous with financial struggle. But even amid difficult times like these, there are still ways to grow your wealth. Your lifestyle will determine which strategies will work best for you, but here are 10 ideas to get your creative juices flowing.

Some require you to think outside the box and try something new, while others shouldn't involve many changes to your existing routines.

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Use the recession as an opportunity to declutter and sell some of the old things you no longer need. Use social media to market to those in your area for free or list your items on an online marketplace if you want to reach a wider audience. Keep shipping costs in mind if you plan to sell to customers further away.

Selling old items could also produce some fringe benefits for those who have a lot of stuff. You may be able to get rid of an old storage unit or free up some extra space in your home.

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If your employer allows it, you could always put in some extra time at your job to earn some more money. This really only makes sense if you're paid hourly or you freelance. Salaried workers don't stand to gain any more money by working longer.

Of course, this will cost you some of your free time, so it may not be the ideal solution for you. Weigh how much you'd earn from the overtime versus how much you could make using some of the other strategies on this list.

Recessions typically mean fewer available jobs, but there may still be some good opportunities out there in your field if you look for them. Not everyone is willing to make that kind of a radical life change, but it could be worth it for some if the new job comes with better pay.

Salary isn't the only factor to pay attention to when changing jobs, though. Look at vacation time, benefits, and retirement plan access in order to determine whether the move makes sense for you right now.

Side hustles are a nice alternative when you can't work overtime or find a better job elsewhere. There's virtually no limit to the types of work you can do, and technology makes it easier than ever to get started. You could drive for a ridesharing company, sell handmade goods online, or get paid to walk people's dogs. There are plenty of side hustles you can do from home, so you don't need to let pandemic concerns stand in your way.

Make sure you keep track of how much you earn from your side hustle and set aside a portion for taxes. You should also keep receipts for any purchases you make for your side hustle as you can write these off on your taxes.

ALSO READ: How to Become a Millionaire With Your $175/Week Side Hustle

If you're looking for a money-making venture that's a bit more hands-off, consider renting out some of your belongings. If you have a spare room or a spare property, that's a great place to start. You could rent to long-term tenants or to travelers visiting the area.

It's also possible to rent out your car, your parking space, your RV, your boat, and more. If you have something you don't mind sharing with others, do some research online to see how you could rent it out for some extra cash when you're not using it.

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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

All right, so paying down your debt isn't technically a way to make more money, but it can help you keep more of the money you're already making. Focus on your debts with the highest interest rates first, like credit card debt or payday loans. Make sure you're making the minimum payment on all your debts, then put any extra cash you have every month toward your balance with the highest interest rate first. When that's paid off, move onto the balance with the next-highest interest rate.

You can also try a balance transfer card for credit card debt. This temporarily halts the growth of your balance, so all of your payments go toward paying down the principal. A personal loan is another option. These have higher interest rates than many other loans because there's no collateral, but you won't have to worry about your balance growing over time.

Mortgage rates are low right now, so it's a great time to refinance if you'd like to save a little money. You could opt for a shorter loan term if you'd like to keep your monthly payment the same and pay the full balance off earlier.

But if you're trying to reduce your monthly costs, it might make more sense to consider a loan with a longer term. You'll have your debt for longer, but your monthly payments will be less, so you'll have more money to spend on other things.

ALSO READ: 3 Top Stocks to Recession-Proof Your Portfolio

High-yield savings accounts can help you earn more interest on the savings you already have. Annual percentage yields (APYs) aren't what they were before the pandemic, but you can still earn a lot more with one of these than the 0.06% national average APY on savings accounts.

A high-yield savings account is a great place to stash your emergency fund and any savings you plan to use in the next few years. There isn't any risk of loss, as long as you don't keep more than $250,000 in your account. Plus, you'll earn a little extra on your funds every month that can help you reach your financial goals more quickly.

A certificate of deposit (CD) is an alternative to a high-yield savings account if you don't plan to spend your savings within the next few years. They can sometimes offer higher APYs than savings accounts, especially if you choose a CD with a long term. But you're agreeing to lock up your money for a set amount of time and you could face penalties if you try to withdraw your money early.

There are CDs with terms only lasting a few months and CDs with terms of five years or more. Each bank has its own selection of terms with its own set of rates, so compare options from a few different banks before deciding which is right for you.

Investing when the market is extremely volatile can seem scary, but if you're in it for the long term, these short-term ups and downs shouldn't worry you too much. As long as you're choosing strong, established companies, you'll likely see your investments increase in value over time. If you're not sure how to get started, an index fund is a great option for beginners.

Don't invest your emergency fund or money you think you'll need in the near future. You don't want to have to sell at a loss if you need your money at a certain time. Only use funds you don't think you'll need within five to seven years.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

We've gone through 10 possible ways for you to make some extra cash during the recession, but this is far from a comprehensive list. Do some brainstorming on your own to see if you can come up with any more ideas. Then, sit down and think about which of these suggestions makes the most sense for your lifestyle right now.

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