Making money during a depression is a challenge, without a doubt, but before we get into ways to make money, perhaps it would be a good idea to consider what things would be in a declining demand, and what things would be on an increasing demand. We should consider what things people need and can't do without, and what things people want and will not do without.
Maybe making money in a depression would be only a second thought for those who already have money; but, how about protecting your money and preserving the value and the buying power of that money.
We will not get into too much of a market/economics model, or talk in terms of high finance; we want to understand just some simple concepts first, that’s all.
In 1935, gold was $35USD per ounce, and would buy a good, three-piece men’s suit. Consider this: you’ve got the gold from 1935, and held onto it until today (Jan2009 Gold Price); you also took the $35USD and held it until today. With the $35.00, if you were lucky, today, maybe, you could buy a pocket on that suit. On the other hand, you could sell the gold for about $850 to $900, and you could still buy a good three-piece suit today. Now, Gold? That Is Wealth Preservation! And the USD? That is called loss of buying power, or better known as inflation.
If you put your money in the bank today at, say, 1% interest and inflation is running at 10%, or more per year, then you are losing 9% of its buying power; you are paying a high price for protection, or safe keeping of your money. And if you haven't heard of the bank closures and corruption in that industry, then you have been under a log for a few years.
Ask yourself if the prices of things you buy regularly, are going up, staying the same, or going down? If it has been going down, it was made in China at discounted labor cost, and that is the only reason prices are not out of control.
Okay, with that little bit of new information, consider now how one can be making money in a depression...
When thinking of making money, perhaps something you might consider, are what kinds of things people need and want, and how you can buy them at wholesale and sell them at a profit?
Even if you are only thinking of getting a job and don’t want to be in business for yourself, consider this anyway, because, ultimately, if you get a job, you’ll be working for a company, or business, that does this very thing.
So, if you have money over and above what you need to live on (even if it is only $50 or $100), the questions you should ask yourself, are “How can I preserve it, and, if I am going to put that money at risk, what is going to be my return on investment or ROI.”
I feel the best investment of your money, even small amounts, is to put it into your own business, and for a couple main reasons. One, you still have control over it, and you can always do something to ever improve the odds of a fair and healthy return on your investment. Two, you don’t run the risk of losing it by investing it with someone you don’t know.
An example of this, is what we see today in hedge funds, where investors are not allowed redemptions, so they can’t even get their money back.
Making money in a depression will be possible, and can be very profitable is you keep it simple and logical, and seek advice from others who have more experience in your chosen field of endeavors.
In the book How To Survive A Depression MANUAL there is one full chapter dedicated to this question, and another on wealth protection and wealth preservation methods.
This Great Depression.com site is all about helping you to survive and prosper during a depression, and to enjoy a better life.
We are a group of researchers, business people, and concerned human beings desiring to create a place of hope in these ever-increasing, seemingly hopeless, times.
It is our mission to discover, develop, and report the ideas that can make life better for us and our families, and for others. Being rich with money is only one form of wealth.
Charles is 51 years old, has held position as VP of Sales for two International companies and has built several businesses himself. He is a huge believer in Personal development...and has the library to prove it!