The recession puts pressure on our income, so many entrepreneurs and even employed individuals are looking for new ways to generate additional income. Fortunately, there are many things you can do to generate passive income without affecting your current work-life balance. Below, we’ll introduce you to some of the most popular ways to generate passive income during a recession.
Learn to Trade
Forex trading in Canada is becoming more popular than ever. Many individuals turn to online trading to make fast profits. While this can be a risky business, you can start with capital you are comfortable losing, or you can even start with a demo account and trade with virtual currency first.
Either way, many people nowadays implement successful trading strategies or, if you simply want to generate passive income, you can opt for copy trading instead. In other words, you sign up with a broker that allows copy trading, and you can copy a successful master trader’s entire portfolio and all of their future transactions will be executed in your account, too.
Invest for the Long Term
On the opposite side of the spectrum, you can build a long-term portfolio that will keep feeding you passive income even long after the recession. Although due diligence is required, many long-term investors seek blue-chip, dividend-paying companies. These tend to be more stable in value than smaller companies and you will earn dividends from your investments, along with the possibility of capital gains.
Purchase Real Estate/Self-Storage Facilities
During a recession, many people struggle with funds, so it’s quite common to downsize or sell their homes. Fortunately, such facilities are likely to retain their profitability after the recession, too, depending on your location and how many such facilities are available.
While purchasing a self-storage facility may require high capital, you can also invest in them to generate passive income. One example is building a portfolio that contains real estate investment trusts (REITs). These trusts are large companies that own and operate such facilities, so you will earn a portion of their income.
Rent Your Property or Goods
If you already own real estate, fields, buildings, and other physical goods, including vehicles, you can rent them to people in your area. During a recession, people try to save money by doing chores that would otherwise be done by professionals. Examples of such tools that you could buy and rent include gardening machinery and equipment and sporting goods (such as tents, for instance).
Save Your Money
During a recession, interest rates are increasing considerably. Hence, you can take advantage of this opportunity by putting your spare cash into an interest-bearing account. There are many options you may want to consider, ranging from the traditional bank savings account to more innovative ways of earning money, such as purchasing cryptocurrency and providing loans in crypto. More examples of interest-bearing financial instruments include short-term bonds, money market mutual funds, and other money market instruments.
All in all, there are multiple opportunities to generate additional income during a recession. As long as you have a set budget, you can start exploring your options and choose the one that provides you with the best passive income streams.