When the economy begins to struggle, people start looking for ways to make some extra money. Side gigs can seem like the perfect choice because you can choose your hours, they’re easy to start, and the payments can be immediate.
Unfortunately, not all side gigs are designed to succeed during an economic slowdown. With lower demand and increased competition, some can actually become more of a hassle than they’re worth.
If you’re thinking about starting a side gig to make some extra money amid a turbulent economy, here are a few that you might want to avoid.
Rideshare Driving
Becoming a rideshare driver is a simple and straightforward process. Fill out the application online, submit your information for a background check and you can be driving within a day or two.
However, when an economic slowdown happens, more people sign up to drive with companies like Uber and Lyft. More drivers mean fewer rides are available, resulting in lower income per driver.
It’s also important to consider the downsides of driving for rideshare companies because these can become more significant during an economic slowdown. The more you drive your car, the more gas you’ll use, and your vehicle will require more frequent maintenance. This can affect your earnings.
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Food Delivery
Many of the same issues that rideshare drivers face will also be a problem for food delivery drivers. You’ll be competing with more drivers for restaurant orders, and car maintenance can cut into your overall earnings.
However, with food delivery, you’ll also see a decrease in business for DoorDash, Uber Eats and Grubhub. When the economy weakens and people start losing jobs, they tend to cook more at home. This results in fewer food deliveries overall. Additionally, when there are orders, the tips you receive may not be as generous.
Pet or Home Services
Another side gig to avoid is anything related to pets or home services, such as dog sitting, cleaning homes, lawn care, and babysitting. In a slower economy, these are the types of things people look to cut back on first to save money.
Instead of hiring someone to clean their home, they start doing it themselves. Instead of hiring someone to help install a TV on the wall, they handle the task themselves. Additionally, dog sitters have less work because fewer people are traveling, thereby reducing the need for pet sitters.
Flipping or Reselling Goods
When the economy is good, flipping or reselling items can be a profitable side gig. However, when the economy slows, people are less likely to spend money on non-essentials like collectables, vintage clothing or home decor. With less demand, you may find yourself stuck with excess inventory and be forced to lower your prices just to move items.
Another risk that flippers face is the oversaturation of marketplaces like eBay, Mercari and Facebook Marketplace with people looking to make extra money. The additional supply is likely to drive prices lower.
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This article originally appeared on GOBankingRates.com: 4 Side Gigs That Don’t Make Sense in This Tough Economy
