Are you recession proof? This pandemic has really urged me to evaluate whether or not I’m prepared for a recession. The “pause” in our economy has highlighted the people who will almost always have job security, as well as the jobs that have less stability in tumultuous times. I, for one, have one of those “less stable” jobs.
I am a Realtor and this pandemic has put a lot of my client’s moves on hold, and I am left with no income. Coming off this weekend’s news about Chase raising it’s lending requirements to a 700 credit score and 20% down payment, I imagine many lenders will follow suit (most lenders typically offer a 620 credit score and 3.5% down payment option, so the increase in Chase’s requirements is monumental). The real estate industry is being disrupted now and since I’m completely dependent on the buyer’s ability to buy, and the seller’s need to sell, I need to start becoming more prepared for a recession.
Luckily, I’ve spent the last few years budgeting and preparing my emergency fund and will be able to survive a few months of no income. But, it has made me realize how I need to follow my own advice on becoming recession proof.
Having multiple income streams is invaluable right now, and further down this article I list a few recession proof side hustles that are worth checking out. Whether our country will go into a prolonged recession or bounce back is impossible to know, but it is better to always be prepared for a recession. Join me in becoming recession proof in 6 achievable steps, and download the Recession Proof Survival Kit so you can be fully prepared!
Related Content:
- 21 Side Hustles That Pay Well
- What You Should Do With Your Next Paycheck
- 10 Steps To Be More Financially Secure
Buckle down on your budget
How much savings do you have? How many months of bills will that cover? If you do not have enough to cover 3 months worth of bills, consider getting a side hustle or part time job (I go over these later on in the article). Audit your current budget and focus on the essentials- food, shelter, car insurance, health insurance, etc. Try to limit frivolous spending as much as possible. What does your new budget look like? It should be much leaner with a huge focus on saving for your emergency fund.
Now that you have narrowed down your essential expenses, analyze them to find where you can save. Go back and shop around your car insurance, are other companies offering a cheaper plan? Do the same with your phone plan, internet plan, and other recurring expenses. Go to their competitors and ask for a cheaper rate and use that to negotiate with your current companies. What else can you do to make your essential expenses cheaper?
If your job was directly affected by COVID-19, call your mortgage lender/property manager, car loan provider, and credit card bankers to find out if they have any programs to help those affected by the pandemic. Make sure they explain every detail of their programs to you, any hidden fees, when the payments will be due, if your credit score will be harmed, etc. When you’re speaking to them, be sure to mention how you were affected by COVID-19. Some of their rules require the actual mention of the coronavirus pandemic.
recession proof side hustles
Increase the number of income streams you have by finding a recession proof side gig! Brainstorm what skills you have, and offer your services on Fiverr, TaskRabbit, or Upwork!
- Search Craigslist Gigs for quick ways to make money- I see postings on Craigslist for helping with yard work for one day, helping with a move, bartending an event etc. These gigs require a smaller commitment and are a good way to earn some extra cash.
- Participate in focus groups and psych studies- Here are two great resources for that: focusgroup.com and focusgroups.org. You can also find these on Craigslist. I once participated in a sleep study and made almost $200 for 2 hours of my time!
- Dumpster dive for free furniture and sell it online (usually it’s placed right outside of the dumpster, don’t worry)- I have done this numerous times and it requires minimum effort! The best places are apartment complexes since it usually stays out by the dumpsters for a while.
Fitnancials also has a great list of 13 recession proof side hustles that might work for you! Some of my favorites from that list are:
- Teach online- I have a number of friends who have taught for VIPKID! You can earn a great hourly rate and it is very flexible. The application process isn’t the easiest so I would recommend getting started on this ASAP.
- Become a Translator- if you’re bilingual, this is a great option for you!
There are many side hustles out there that will help you reach your financial goals and add another income stream.
recession proof full time jobs
Is your full time job in jeopardy? Take a few minutes to look into back up jobs you can apply to in the future. This will help ease some of the stress for you. One way to do this is to run a quick Google search on what jobs your state deems “essential”. The jobs that are currently operating under this pandemic are relatively recession proof. See if you can work part-time or full-time at one of these:
- Health professionals & staff – nurses, doctors, surgeons,lab techs, staff, IT departments, janitors, etc. Anyone in the healthcare field right now is slammed.
- Assisted Living Facility Caregivers & staff
- Law Enforcement & staff
- Pharmacists & staff
- Grocery store workers- people will always need groceries. Check to see if your local grocery stores are hiring.
- Hardware store workers
- Post Office
- Amazon Delivery
- Amazon Warehouse
- UberEats
- Instacart
- Garbage workers
- Gas station staff
- Water treatment center staff
- Wastewater treatment center staff
- Plumbers
- Electricians
- HVAC providers
- Legal services
- Accounting services
- Military
This is not a complete list, but it will hopefully give you an idea! If none of those interest you, you can also check out this list of 24 work from home jobs! Here are a few great ones from that list:
- Proofread – if you have a knack for catching grammar mistakes, this could be a great option for you!
- Transcribe videos– you can transcribe videos or phone calls for people. I’ve even heard of jobs where you type closed captioning for movies! Imagine being paid to watch movies all day!
- Data entry jobs
recession proof passive income streams
Making money while you sleep is the dream! There are two common ways you can earn recession proof passive income. One is by investing your money in stocks, real estate, or a business. Another, is to invest your time, skills, or something you already own into creating a product, service, or other content. What skills do you have that you can monetize? Can you create a YouTube channel on how to maintain your car? Or maybe you can sell your presets on Lightroom? You can even sell printables on Etsy!
Here is a list of 18 recession proof passive income ideas that might interest you, some of my favorites are below:
- Rent your car with Getaround – if your car is just sitting in your driveway, consider renting it, especially if you have a truck!
- Sell an online course or ebook – this will take you a few hours of work but with proper promotion, it can be a great way to make passive income.
- Rent out a room in your house – you can either do this through Airbnb, VRBO, or a regular rental.
Save more money
The more money you have saved, the more financially stable you will feel. If you are looking for some more unconventional ways to save money, here are some options that I myself have done in the past:
- Save money on skin care– it’s no secret that skin care is expensive, you can swap out some of your facemasks with these easy DIY face masks!
- Only use cash- it’s easier to budget and save money when you’re not swiping your credit card.
- Curb your online shopping habit– it’s easy to lose track of money when all you have to do is click “check out.”
- Don’t buy trash bags– by switching to the free bags from your grocery shopping, you are saving money and helping the environment.
I encourage you to go through this list of 60 extreme money saving tips! The toilet paper tip is certainly useful these days! I still can’t find toilet paper in the stores!
Here is a sneak peak into the extreme money saving tips list:
- Don’t use the AC or heat– use cold or hot water bottles for each respectively.
- Move in with your family- if you’re able to, this can save you a lot of money. Housing is usually people’s highest expense.
- Find free food- I still do this! Whether it’s in your office break rooms, open houses, or events around town, there are numerous places you can find free food. (It’s not so easy now with places being closed, but bookmark this for the future!) Also, a lot of restaurants or coffee shops are forced to throw out their food at the end of the day, so if you befriend the barista’s or cooks, they might share some with you!
- Stop using paper towels – this will have a positive affect on your bank account and the environment. I have done this for years, first out of necessity and now because I see the environmental benefits. A washcloth can wipe up anything a paper towel can.
- Sell your furniture, kitchenware, and clothes in a garage sale – you can also do this on Facebook Marketplace, Poshmark, Letgo, etc.
- Rent out your home and sleep on people’s couches instead – this reminds me of Couchsurfing! It is completely free and you can hop around to different hosts if you need to. I used it in Europe when I was traveling during my study abroad semester!
Journal
The mental effects of a recession can be difficult to get through. The anxiety and stress you might feel about the future might feel overwhelming to you right now, but journaling can help you compartmentalize the thoughts and work through it. I’m a huge proponent of journaling and as you get to know me, you will start noticing it pop up more and more throughout my articles. Journaling forces you to confront your emotions and deal with them. The only way to move past difficult times is to get through them. The faster you confront your issues, the sooner you will arrive where you want to be.
Journaling can be a difficult habit to make, so I recommend getting a journal that provides prompts for you so you can have guidance on what to write about and eventually, you will be capable of moving onto writing about what you’re grateful for or what you enjoyed that day.
One of my favorite gifts ever was a 5 year Happiness Journal from my friend a few years ago. Every night before bed, I take a few minutes to reflect on my day and write in it. It’s been really amazing seeing what I wrote in the prior years and my growth year-to-year is impressive. Besides this journal, I also write every single morning in a separate journal about my worries, thoughts, dreams, etc.