When the UK economy contracted by 0.3% in April 2022, well-founded fears of an upcoming recession grew markedly among households, businesses and investors alike.
These fears have certainly begun to impact the markets, particularly with experts now predicted that rampant inflation will peak above 18% in January in line with continually rising energy bills.
While this is creating a stagnant economic climate that makes it hard to consider expanding your business or taking on an additional side hustle, now is also the ideal time to seek out ways of boosting your earnings. However, here are some recession-proof ideas to help you on your way.
Why Start a Side Hustle During Challenging Times?
With inflation having already reached double figures and now way beyond the 2% target set by the Bank of England (BoE), Brits are already struggling manfully without the arrival of a technical recession.
For example, continued inflation rises through 2022 have weighed heavily on real wages in the UK. In fact, real wages declined by 3% after accounting for inflation during the last quarter, while the cost of food and energy bills continue to soar.
This is squeezing household finances and disposable income levels markedly, creating a scenario where people are looking to increase their earning potential and develop additional streams of income in order to make ends meet.
This alleviates stress and makes it easier to cover rising costs, while creating more financial security during challenging and volatile times.
What are the Best Recession-Proof Side Hustles?
The question that remains, of course, is what are the best recession-proof side hustles in the current economic climate? Here are a few to keep in mind:
- #1. Freelancing: If you have refined and marketable skills (particularly those that are in demand in the gig or digital economy), you may want to consider selling these as a freelancer in the open market. This should be done alongside your regular job, creating an additional stream of income and creating flexibility in terms of how much you earn from one month to another. This requires organisation and strong work-ethic, while it’s also important not to compromise your ability to undertake your day job.
- #2. Investing and Trading: While the economy falters during or in the build-up to a recession, the financial markets have the potential to prosper. In fact, you can make use of speculative investments like spread betting to profit from economic volatility and depreciation, by selling targeted assets short and cashing in as they lose value. You can also invest in value stocks or those that have been left undervalued by an economic decline, in the hope that they return to their true market value over time. A multi-asset broker such as Hackstons can offer a wide range of investment opportunities across different asset classes, giving you the flexibility to take advantage of market trends and profit from economic uncertainty.
- #3. Sell Online or Drop Ship Items: Selling unwanted items online is an easy and unskilled side hustle in the modern age, and one that will benefit from increased demand as people look to save money. You can also sell bespoke items to customers online, although this will require some level of skill and initial investment. Drop shipping is also a viable option online, as you buy in-demand goods at wholesale prices and resell these at the RRP (banking the difference between these two prices as profit).
