by Brady Rutgarr

Created on: October 23, 2009   Last Updated: April 27, 2010

Making money in a recession is about stepping out of the despair and panic of the market and capitalizing on investment and service-offering opportunities: it's about putting in a little extra effort to secure gains while other people worry if they will be selected for the next round of corporate layoffs. Be wary in your quest for riches, however. When people lose their jobs and the job market is bleak, get-rich-quick schemes begin to look more enticing. These things hardly ever pan out, and when they do it's generally just for the people on top. Save yourself some time, effort, and money and avoid the temptation. Real opportunities don't require you to pester your friends and family nor will they require you to put strains on those relationships. Instead, try to focus on what people are really spending their money on. Just take a look at some of the suggestions below:

* Uncover the Flow of Money - One key to increasing your income during a recession is to follow the flow of money. People are still spending, though perhaps their spending habits have changed. They may have stopped going out to the movies as often or taken to eating in more than they eat out, but that doesn't mean there isn't money to be made. During recessions, many people tend make smaller purchases. This doesn't always save them money, but it opens up a whole new venue for income generation. Keep your eye on re-purposed crafts, cheap indy-style t-shirts, and garage sale bargains. Seriously, the options are only as limited as your imagination.

* Look for a Second Job - Of course, a second job doesn't sound like a very good way of increasing your income during a recession, but in some areas it's tough for people to find one job, let alone two. If you are able and willing, a second job in your field of expertise could help increase your job security. If you perform well and get along with your management, you may find yourself in a much better position if your primary job gets cut. Do not underestimate the benefits of securing secondary employment, even if your second job is limited to consulting or temp work. It never hurts to have more professional contacts to ad to your networking repertoire, especially in times of economic slowdown and job cuts. This may prove even harder than it sounds with job markets as saturated as they are. If that's the case, you may need to consider taking on employment that wouldn't normally meet your standards. Or, if you fancy yourself as a writer, you could always write articles for sites like Helium, Triond, and HubPages. Don't be fooled, it's no easy stroll to riches, but like everything else, you get out what you put in.

* Make Smart Investments - A recession is a good time to buy stocks of traditionally strong companies. The best companies will find ways to continue to increase profits even during a Bear market, but those strong companies will still be impacted by irrational market corrections. Keep your eyes open and make educated stock purchases during investor panics. You can turn around and sell the stocks for mild profit as the market recovers, or you can hold onto them for long-term gains. Keep in mind that some items still sell very well, even in hard economic times. Take the newest lines of compact laptops and even the iPad as an example. Utility companies are also generally secure as people still have to pay their bills.

As you can see, there are many ways to increase your income during a recession. So keep your wits about you and always have both eyes open for the next opportunity. If all else fails, a little elbow grease and some extra hours at a second job can be your salvation.

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