Recessions can be tough times for everyone – many get laid off at work, and even those lucky enough to keep their jobs suffer through decreased investment, increased crime rates and low morale. On average, incomes will fall significantly throughout a recession, particularly for those running businesses which face great decreases in demand.

But it isn’t all doom and gloom – there are, in fact, many ways in which to make money during a recession. Those who know how can take advantage of the economic downturn and make sure they don’t suffer in the long term. To start with, you need to think about current demand in the economy – as people have less income than before, they will be looking to buy cheaper products. Why not provide them? Selling low price goods can help you make plenty of money in the recession. The process is a lot easier than you may think – selling your own unused and unwanted items at local car boot sales could bring you in a decent wad of cash. Many more people will be turning to second hand items in an attempt to reduce spending. You could take this idea further by selling on Internet auction websites such as E-bay, which is an excellent way in which to gain a cheap selling platform on which to retail your items. Those who have tried this method have found it easy and enjoyable. Once you’ve run out of your own items, you could search for low cost suppliers and set up ‘shops’ selling a particular type of product (perhaps one you have found to be selling particularly well from your own experiences). If your ventures are successful, this could even turn into a long term business.

Have you lost your job in the recession? If so, you may have received some redundancy pay. Why not use this to set up your own business? The economic times for doing this may not be ideal, but with a good idea, some motivation and a lot of hard work, you could well create your own new job. Even if you have no experience in business; if you have a fantastic business idea you’ve wanted to realise for a long time, there is nothing stopping you from becoming a success. If possible, gain some advice from those who do have business experience, particularly in the field that you wish to enter. Don’t forget to check whether there are any government support grants available to help with your business start-up; they are often given out in recessions as the government attempts to give the economy a much needed boost.

A surprising way in which money can be made in recession is through investment. Stock prices plummet during times of recession, and those with investments in the stock markets can lose out significantly. However, this downturn presents the opportunity for an upturn to take place in the market. Buy stocks that are low in value, and it is inevitable that once the recession is over they will rise again. Of course, there is a risk attached: the stocks may never become valuable again, as companies are prone to going bust in economic downturns. But usually, this isn’t the case. To be on the safe side, invest in a company you believe to be reasonable secure (not one that has been said to be on the verge of collapse in recent headlines). Most companies have back-up funds that are used in recessions to survive.

Author Bio: Timmie Wheeler is A media consultant at Platinum Plates who supply private number plates to both the trade and general public at discounted prices. They are CNDA & MIRAD members for your security. Do you have a Motoring based website ? unique motoring articles supplied free of charge.

Category: Finances
Keywords: Investment, economy, making money, recession, stock market, auction, financial markets, shares