Most economists believe that the United States will fall into recession in 2023.
Side hustles could help bolster your finances ahead of a likely downturn.
The entrepreneurs spoke to Insider about their vending machine, laundromat, and Poshmark side business.
A slowdown is on the horizon, with economists agreeing that the US will enter a recession in 2023. Which means it’s time to get serious about money.
Having an emergency fund and setting up a side hustle are among the best ways to prepare for a downturn, personal finance experts tell Insider.
Here are five tried-and-true secondary tips that could help you strengthen your finances.
Vending machines have become a popular side hustle given their appeal as a passive source of income. The business has a fairly high cost of entry, but once operational, the vending machines require a minimal time commitment other than refilling.
Jamie Ibanez, 22, told Insider he was able to earn $135,000 in revenue last year operating 40 vending machines in Dallas, Texas. He made an additional $100,000 by operating a YouTube channel linked to his vending machine business.
Marcus Gram launched his vending machine business in 2018 with $10,000 in savings. His 18 machines, spread across four states, brought him more than $300,000 in revenue last year.
Affiliate marketing involves businesses paying websites for revenue generated from marketing from affiliate websites. These websites need writers to create marketing content, and writers receive a share of referral revenue.
Christine Luna, who is a full-time caretaker of her four children, began writing blog posts for kids’ toy gift guides in 2020, offering her services for $30 per post. She was able to bank $14,000 a year for a job that only took 10 hours a week.
“Is this the most exciting writing you’ve ever done? Probably not,” Luna said. “And that’s why so many websites will pay freelancers to write them.”
Rent your car
If you own a car, you know how expensive it can be. Indeed, personal finance experts say cutting car costs is key to stabilizing your spending and should be one of the first things you tackle before an impending downturn, downsizing your vehicle and, if possible, reducing your fleet to just one.
You can also rent your cars when you know you don’t need them, using platforms like Turo.
Daniel Veiga used Turo to rent his aftermarket 2022 GMC Yukon SUV for $140 a day. It generated $2,192 in its first few weeks on the site, so Veiga put the rest of its cars there — and bought more to keep up with demand.
Selling old clothes on sites like Depop, Thredup, and Poshmark can provide easy income from unwanted items. For some, it’s become a six-figure stampede involving the sale of exclusive items.
Ashley Peek, who works full-time in health insurance, was able to keep her job while working 25 hours a week at her resale business Poshmark. She got more serious about the business when she started buying mid-range luxury goods in 2019.
Bringing in $133,000 last year, she now earns more from her hustle than her nine-to-five.
“I’ve been lucky in my reselling efforts, but my consistency in publishing is the main reason why I’ve been so lucky to develop ReCloth Collection,” Peek said. “I’m very active on Instagram, adding to my story every day and my feed at least once a week.”
Mona Mejia, a 44-year-old mother of four, was able to bring in $735,000 last year selling clothes through social media live streams and brand partnerships.
Own a laundromat
Like vending machines, laundromats have a high cost of entry but can ultimately provide a solid stream of passive income.
Carlos Ochoa spent $65,000 to buy laundry facilities and another $30,000 to renovate the space. He now earns $24,000 a month from the laundromat, self-service machines, and wash and fold services, each earning $12,000.
A laundromat can be more easily managed passively if it’s made up mostly of self-service machines, Ochoa said. But, he added, it can be extremely painful to take off.
“If you don’t have at least that much money to invest and you still have enough to live on until it pays off, it’s not a smart move,” he said. “And as I explained, it’s not just about collecting quarters. Especially if there’s a wash and fold component, it’s only partly passive income.”
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