Recessions, like the one currently engulfing the global economy, can be tough on people of all income levels. For bargain hunters, a weak economy means looking extra hard for good deals, discounts, and special offers. But, contrary to popular belief, recessionary periods do open up a few unusual opportunities for saving money. College degrees tend to be more affordable because many schools lower their tuition to attract more students.
Plus, several investment-grade assets attract large pools of capital when markets otherwise go sour. For those who value physical fitness, health club membership rates tend to drop significantly when inflation and unemployment take hold. The same is true for real estate and luxury goods because consumers and investors pull out of those markets, thus reducing overall demand and prices. If you’re looking for good deals in late 2022 and early 2023, consider the following prospects.
College Education
Most are surprised to learn that the cost of higher education usually comes down in bad economic times. One of the many reasons is that universities and colleges are businesses, and they want to earn a profit. When inflation is high and adults are out of work, the only way for schools to bring in new students is to cut tuition. That’s great news for the huge numbers of young and middle-aged people who are trying to figure out how to pay for a four-year degree. Luckily, it’s simple to apply for a student loan that can cover the costs of college or just a part of it. If you’ve been planning on getting a degree, now could be the ideal time to get a loan and start studying.
Investment-Grade Assets
There are no guarantees when it comes to investing in any asset class. However, when prices are rising and it’s hard to find decent jobs, investment-grade assets can offer excellent returns. The category includes things like real estate, fine art, wine, precious metals, and more. Because so many consumers have less cash available in tough times, sellers do everything they can to bring capital into their portfolios through sales of metals, real estate, etc.
Fitness Memberships
A depressed economic climate is terrible for the fitness industry. That’s because most consumers view club memberships as a luxury they can do without. When working people are financially strapped, they will find ways to save money on insurance since that is a necessity but two of the first things they give up are cable subscriptions and gym memberships. For that reason, annual fitness club fees sink very low and can be great bargains for health-conscious adults who want a safe, fun place to get their daily dose of exercise.
Luxury Goods
When wages are stagnant, jobs dry up, and inflation wreaks havoc on spending habits, consumers reduce their consumption of luxury goods. Sellers, in an act of desperation aimed at bringing sales back up, tend to reduce prices significantly on non-essential things like health club memberships, jewelry, high-end clothing, travel services, pricey accessories, and more. In fact, recessions are one of the only times that sellers of luxury items offer deep discounts. So, if you have the money to take advantage of these unique bargains, now could be your best chance.
