Everyone has their own idea about how to best invest their money during a recession. And with fears of a recession on the rise, now’s the time to think about your strategy and how to successfully and efficiently employ it. 

If you’re wondering where to invest during a recession, here are five ideas to consider:

1. Cash

This is by far one of the safest ways to invest during a recession. You don’t want to put all your money in a high-yield savings account, but it should be a big part of your investment strategy. That’s especially true if you don’t have a well-funded emergency account in place. 

2. Dividend stocks

No matter the economic circumstances, investing in dividend stocks is one of the best ways to generate passive income. Seek out companies with a strong balance sheet and low debt-to-equity ratio. 

Tip: dividend aristocrats have increased their dividend payouts for a minimum of 25 consecutive years. While there’s no guarantee that this will continue in the future, these dividend stocks are among the safest. 

3. Real estate

When a recession hits home values will likely dip. And when that happens, it’s a good time to buy up real estate at competitive prices. This way, when the economy turns around, you’re well positioned to take full advantage. Until then, rent out your property to generate a reliable monthly income stream. 

4. Gold and silver

Precious metals, led by gold and silver, tend to perform well during times of economic uncertainty. However, when demand goes up for these metals during a recession, the price generally follows. 

If you’re going to invest in gold and silver, it’s best to do so sooner rather than later. You want to invest when prices are low, not high. This best positions you for a future return. 

5. Yourself

There’s nothing wrong with betting on yourself. After all, you’re your greatest asset. Why not start a side business? Why not take your education to the next level? When you invest in yourself, you’re in a better position to come out on top in the long run.

Tip: it’s okay to invest in yourself, but don’t take a financial risk that could “sink” if things take a turn for the worse. 

It’s time to take action

What do you think about these investments? Do they make sense for you during a recession? Are you beginning to strongly consider them?