6 Ways To Build Wealth After Getting Laid Off — That Don’t Include a New Job
Written by
Vance Cariaga
Edited by
Amber Barkley
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Layoffs are a fact of life in the modern economy — even when the economy is growing and unemployment is low, like now. The list of companies that have announced layoffs this year alone reads like a “who’s who” of corporate titans and includes Amazon, Walmart, Microsoft, Alphabet (Google), Tesla, Bristol Myers Squibb, Nike and Disney.
The disconcerting thing for workers is that employers sometimes announce layoffs even when they’re doing well financially. In some cases, businesses announce layoffs to make up for past hiring sprees. In other cases, they simply replace workers with AI or other technologies.
Given the size and frequency of layoffs these days, it’s understandable that some folks who have been given the pink slip have decided to stop looking for jobs altogether. If you fall into that category, here are six ways to build wealth that don’t include getting another full-time job.
Find a Side Hustle Instead
Unless you were given a generous severance package after getting laid off, you might need to bring in some immediate income to help navigate the initial rough patch. That doesn’t mean you have to get another job, however. There are plenty of side hustles available that let you work on your own schedule and be your own boss.
If you have expertise in a particular field, for example, you could serve as a consultant and earn up to $100 an hour or more. If you have a strong background in social media and a large network of online friends and followers, consider becoming an influencer. It’s not uncommon for successful influencers to earn six-figure incomes through sponsored promotions, brand collaborations, merchandise sales and other means.
Rent Out Part of Your House
If you are a homeowner, one of the best ways to earn immediate income following a layoff is to turn your house into a moneymaker. As the Virtual Vocations website noted, sites like Airbnb and Vrbo let you list single rooms in your house to travelers and traveling workers. You can earn an average of about $924 a month renting a room with a bed, bathroom access and cleaning services.
Invest In Dividend Stocks
You don’t have to be a stock market expert to find securities that can provide immediate income. The best way to do this is to build a portfolio of dividend stocks that let you collect regular passive income, which can compound into substantial long-term wealth.
Use your dividend payments to purchase additional shares through a dividend reinvestment plan (DRIP), and keep adding new capital. Modest initial investments can snowball into diversified six- and seven-figure portfolios over time.
Invest In Real Estate
One of the fastest ways to build wealth following a layoff is investing in real estate. You don’t even need a lot of startup capital if you have the skills and connections to procure deals for other investors. Doing that can help you earn some initial money, build up your finances and make it easier to qualify for loans that let you buy, renovate and then sell your own properties.
When housing/real estate markets are hot, as they have been for much of this decade, the returns can outpace just about any other kind of investment.
Buy an Existing Business
Now is a good time to keep on the lookout for businesses to purchase — largely because of the sizable number of baby boomers selling off their businesses to enter retirement. Buying an established business following a layoff means you don’t have to deal with the startup costs and headaches that go into launching your own.
Grants and government programs are available to help with financing, and there are numerous small-business advisory services that can help you vet businesses to ensure they are a solid investment.
Sell Valuable Possessions
Another way to earn immediate income following a layoff is to sell off valuable possessions. If you have jewelry, furniture, collectibles or other items that are in high demand, selling them through online marketplaces or auctions can bring in money, which you can then invest in wealth-building assets or enterprises.
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