A recession is looking more and more likely every day. Federal Reserve Chairman Jerome Powell said recently that the Fed will be raising interest rates more frequently than planned due to persistently higher inflation than anticipated.
After he said this, the Dow Jones Industrial Average lost 574 points. This could very well be the tip of the iceberg that lies ahead for an overheated economy with rampant inflation.
How can you prepare for a recession?
When things get tight financially for any individual or family, two areas must be considered: income and expenses.
One way to prepare for a challenging time financially is to cut costs. You do this by looking at your monthly expenses and seeing which items are “need-to-haves” and which are “want-to haves.” To reduce your expenses, some of the want-to-haves must go until your monthly expenses match your income.
Another way to prepare for a recession is to out-earn it and increase your income. For many people, this is challenging, especially if they’re working on a fixed wage and getting a raise isn’t possible. Raises are not easy to come by in a bruised economy.
However, some people are picking up extra income through a “side hustle.”
What is a side hustle?
A side hustle is a way to make money outside your 9 to 5 job. It allows you to earn extra income to help pay for the need-to-haves and have some extra cash for the want-to-haves.
People start side hustles for a variety of reasons, including:
- Supplementing a full-time income
- Increasing financial independence
- Paying off a student loan faster
- Developing a creative outlet
- Optimizing spare time and being more productive
There have even become serial side hustlers who continue to build new side hustles as another becomes successful. While the money is nice, entrepreneurs often find having a side hustle rewarding in and of itself.
How to start a side hustle
Follow these three steps to get your side hustle off the ground:
- Decide why you want to start a side hustle.You may have heard it said that if you know your “why” for doing something, you’ll be better able to stick with it when the going gets tough. What is your why? Write it down and keep it in front of you. It will help you when you face challenges with your side hustle.
- Determine what your skills and resources are.What are you good at? What do you enjoy doing? Do you have the resources to pursue your side hustle?For example, if you want to drive for Uber or Lyft, you would ask yourself if you like to drive, if you’re a good driver, and if your car is a newer model in good working condition.
- Choose and start your side hustle. Once you choose your side hustle, don’t procrastinate getting started. With a recession looming, there’s no time to waste.
12 side hustles for 2023
Stumped on what you want to do for your side hustle? Here are 12 great ideas for you to choose from:
- Participate in paid online surveys
- Get paid to test apps and websites
- Transcribe videos, phone calls, and other recordings
- Become a rideshare driver
- Deliver groceries
- Rent out your home to vacationers
- Deliver food
- Become an affiliate marketer
- Tutor online
- Walk dogs and pet-sit
- Start a blog on Substack
- Start a podcast
The possibilities are endless. If you’re still stuck and want more ideas, do an online search for “best side hustles,” You’ll be amazed at all the lists and ideas you’ll come across.
Having spent over fifteen years helping people plan their lives financially, Bob has a vast amount of personal knowledge concerning personal finance. During his career, Bob mastered many financial products to help people achieve their financial goals, including life insurance, disability insurance, mutual funds, and stocks and bonds. He earned the Chartered Life Underwriter (CLU) designation and held numerous securities licenses. Bob is an internationally published poet and a freelance writer living in North Texas with his wife and Doberman puppy.
