It Is Possible to Improve Incomes During a Recession?

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The UK economy is poised to face a deeper-than-expected recession in 2020, mainly due to the COVID-19 pandemic that had rattled financial markets and economies. According to the European Commission, the British economy will shrink by 9.75% this year, followed by a 6.1% rebound in 2021, the sharpest economic contraction since WWII.

Considering these depressed conditions, unemployment is expected to remain elevated as some of the jobs will be lost permanently. It is crucial for people to find an alternative or complementary income streams, in order to be able to maintain the same standard of living. 

Starting or getting involved in a digital business

Now that social distancing measures are now mandatory across the world, most people had moved into the online world. Starting a digital business or finding a work-from-home opportunity could be one of the best choices when faced with improving income during a recession. There are plenty of people who proved it is possible to succeed in the online, meaning anybody can do it with the right preparation.

As a digital entrepreneur that took part in several projects related to global financial markets, Ofir Eyal Bar believes that now is the right time for people to learn new skills that will enable them to learn how to work in the digital world. "Past pandemics had thoughts us that life can get back to normal only after one or two years", Ofir Eyal Bar is pointing to past events, "which means the labor force needs to relocate fast, as some sectors like tourism, travel, and physical commerce will face hardships, or might even be erased completely".

Investing in real estate

"People that had been conservative with their finances in the recent past, now have enough liquidity to invest in fields like real estate and thus generate additional income", as Ofir Bar, which is heavily involved in this sector stating. One of the biggest successes of Ofir Eyal Bar in the last years was his bet on logistic warehouses in Western Europe Back in 2008. he has made several investments in Germany and The Netherlands over the past few years, some involving his own investor's group as well as international real-estate funds.

Based on his recommendations, success in real estate investing comes from analyzing and focusing investments on small areas where there's still potential for growth, he also points to the importance of recognizing the right opportunity in times of recession.

"Although the global real estate market might be at the end of a bullish cycle and a correction lower could follow in the next years, each country has particular areas where there's a lot of upside potential, even during an economic downturn", this according to Ofir Bar.

Technology had facilitated real estate investments from the comfort of one's home, without the need to travel all over the world. People can invest in REITs or buy properties through reliable real estate investing platforms. There's also an abundance of free information available online for those wanting to get insights into the world of real estate. This opportunity means getting involved in a market that had proven to generate consistent returns over several decades and has the potential to do so, as long as property prices can continue to go higher.

Mindset and expectations

For someone just starting to improve its income via online sources, it is important to note this is a process that could take at least a few months until results will start to show up. The mix of information required to succeed cannot be accumulated overnight and having patience until things work out is one of the main differentiating factors between those who succeed and don't. The main focus should be on developing a rules-based methodology and then following it diligently along the way, even though results don't show from the start.

As for investing the most basic rule is to follow your instincts, and to be able to look beyond the overall upsetting mindset of the daily news. As Ofir Bar believes, the combination of adapting into the digital world and trying to seize a niche within it, alongside conservative investments in real estate, might be the key for an individual to come up with the upper hand during these hard times.