We no longer check to see whether Telegraph. To see our content at its best we recommend upgrading if you wish to continue using IE or using another browser such as Firefox, Safari or Google Chrome. The recession is deeper than first thought, with the British economy contracting at a faster rate than predicted, growth figures showed last week. Many households are struggling to make ends meet and the number of people unemployed continues to swell each month.

But the recession will not be universally felt. Not everyone is a first-time buyer struggling to save up a deposit or get a mortgage.

Many people will have plenty of savings in the bank and will have repaid their mortgage long ago — they may be looking for ways to get a decent return on their money. Savvy investors and experienced business people will be looking to make money out of the carnage — for them the recession brings with it the next opportunities. Some people have already made their move. The FTSE index is up by more than 30pc since its March lows and figures published this week show that ordinary investors are snapping up funds that have endured a difficult few months and have been going on the cheap.

There will be opportunities for those in a position to profit from and during the gloom.

Here are some ideas to get you started. Some are risky, some less so, and many not for the faint-hearted — the usual caveats, such as getting advice and profits not being guaranteed, apply too.

10 ways to make money in a recession - Telegraph

Alistair Darling's calls on Monday for banks to get lending again appear to have fallen on deaf ears, so you could do your bit to boost consumer confidence by becoming a lender yourself and get a return of 10pc by doing so.

Zopa, the "eBay of the banking world'', cuts out the big banks, allowing those with money to lend directly to borrowers. Zopa's borrowers should get cheaper rates, and its lenders, higher returns. Your risk is spread among 50 borrowers, so if one defaults your investment doesn't implode.

Invest in a company that is riding high on the back of "cocooning" — the term used to describe people staying at home and sitting in front of the TV. Domino's Pizza has delivered bumper profits as families opt for a take out rather than going out.

And this week Pace, which makes set-top boxes for BSkyB, said it had tripled its profits.

Its roller-coaster ride may not be over. Jonathan Imlah, an analyst at Altium Securities, said: Prestige cars have never been so affordable, as long as you shop around outside the official dealer network. Similar discounts are available on the Jaguar XF 4.

Make the most of VAT at 15pc.

It looks more than likely that it will go back up to So if you are thinking of buying some big-ticket items, now might be an opportune moment. What's more, there may be a discount or two to be had as well.

The price of furniture really starts to come down when the housing market is on its knees — Laura Ashley, Habitat and Heals are just three stores offering up to 70pc off. Likewise, now is a great time to replace your grimy kitchen for a shiny new one. Magnet and Moben are offering kitchens at half price as part of their summer sales. The credit crunch brought commercial property to its knees and two years on it is still in the doldrums, with rental demand continuing to deteriorate. But at some stage rental property values will start climbing, not to mention the asset values themselves.

Mike Lenhoff of Brewin Dolphin, the stockbroker, said: Oriel, the investment trust analyst, says TR Property Sigma represents an attractive alternative to direct property funds, despite its lower yield of 3. The fund is managed by one of the most accomplished teams in Britain and trades on a wide 26pc discount to net asset value.

The trust's managers are beginning to view some valuations as "compelling". It has been a dismal week for oil companies. A weaker oil price and falling demand have dented profits at BP among others, but oil will play a major role in getting us out of the global recession.

Only a fortnight ago many companies were trading on their cheapest valuations for 14 years. Rallies in oil and gas stocks marked the end of the past five US recessions, based on average returns, according to Ned Davis Research.

An added bonus is that BP and Shell are reliable dividend payers. House prices have shown signs of stabilising of late and if you believe that the steepest of the price falls are behind us you might want to consider snapping up a property bargain by buying a repossessed newbuild.

Commodities have enjoyed a recovery this year as China's expansion plans have been reignited. Copper appears to be the analysts' favoured base metal, despite the price rising by 76pc this year. Morgan Stanley said copper was the bank's "favoured base metal exposure". There are several ways to get exposure to individual metals — one of the most popular is exchange-traded commodities ETCs , which you can buy through most stockbrokers or online share dealers.

Find a stock that has a great yield and a history of paying a dividend. National Grid, for example, is currently trading at p and offering a yield of nearly 7pc. The utility, a traditional safe haven, intends to grow its dividends by at least 8pc this year and payouts are due to rise at the same rate until GlaxoSmithKline yield 5pc is another dividend payer that analysts view as safe.

And it will be one of the few beneficiaries of the swine flu pandemic thanks to its antiviral treatment Relenza, which can relieve swine flu symptoms. OK, interest rates on savings accounts aren't great, but you can get more than 5pc on some accounts.

For instance, Barnsley Building Society is offering 5.

What Caused the Financial Crisis & Recession? | Positive Money

Energy prices are falling, having increased dramatically last year, so take the opportunity to get onto a cheaper tariff. Several companies have been directly benefiting from people needing to get their hands on some extra cash quickly — and with high street banks seemingly reluctant to lend. Last week, Provident Financial, the door-to-door lender came under fire for charging pc on personal loans. But whatever your take is on the level of rates, analysts rate the stock as a buy.

Charles Stanley, the stock broker reckons the business has proved its resilience, is well placed to take advantage of improved lending conditions when they occur, while it offers a decent yield of 7. The key to making a mint is to get in before everyone else — all too often mainstream investors try to get a piece of the action long after the easy gains have been made.

Private equity made savvy investors a tidy sum before the sector's run was halted by the financial crisis. But experts reckon it will have its day in the sun again. It is a risky area, but one or two funds stand a better chance of profiting from a recovery in the sector.

Cazenove said Electra Private Equity investment trust was worth a look. It trades at a discount of around 57pc and, given the quality of the management, the defensive portfolio and the strength of the balance sheet, it continued to represent compelling value, Electra said, and remained one of its favoured stocks in the sector.

Discover the next Banksy. Newbloodart trawls the graduate shows, carefully selecting emerging artists to represent on its website. One such artist, Keren Luchtenstein, has seen her work increase in value by pc since There doesn't have to be a recession for you to get this perk, but it is always worth mentioning — and might be one for those over 50 negotiating a redundancy payment. Get money for nothing by paying into your pension. Make a spread bet. You might reckon that the FTSE is due a correction following its rise since March, or you might believe that house prices will fall further.

Spread betting gives you the chance to profit when prices fall. It is a gamble but you can win big if you get lucky. Just remember the downside — that you can lose fortunes if you make the wrong call. Get a cut-price HD-ready digital plasma TV. Benefit from frugal shopping habits.

But some analysts like the look of Tesco and Morrisons. Both Merrill Lynch and Charles Stanley have published upbeat analysts notes and are buyers of the shares. Even if you are knee-deep in debt, just spend a pound and buy a lottery ticket.

You never know, it could be your lucky day. Find out how to invest in recovery with this free guide. Help protect yourself from Identity Fraud with CreditExpert. The best way to transfer money overseas. Howard Marks, an Oxford University graduate turned drug smuggler, made millions.

Now he eagerly awaits royalty cheques. Paul Daniels wasted too much on Ferraris but has made a fortune on his home - despite the flood. Following George Osborne's announcement of the Budget, The Telegraph looks at the numbers on the UK's economy and financial health. George Osborne should simply abandon changes that will reduce incentives to save and create yet more uncertainty.

A light-hearted quiz about the gaping maw of financial misery that perpetually threatens to devour us all. Accessibility links Skip to article Skip to navigation. Wednesday 21 June Andrew Oxlade Time to panic? No, follow the investment rulebook. Kyle Caldwell My five investment resolutions for Richard Evans Bank security: James Anderson This is why I'm worried for investors in the FTSE Some companies are benefiting from people staying in and watching TV.

The kitchen coup — how cash shifted the balance of power over household chores. The inspector calls — and house prices jump. How the Ofsted effect could add thousands to the value of your house or send it sliding.

George Osborne's speech in charts. Just stop tampering with pensions, Chancellor. How much should you be panicking about your finances? More people in their 70s in higher tax bracket than those in their thirties. HOME Finance Financial Crisis Debt Crisis Live Markets Banks and Finance City Diary. Economics Transport Media and Telecoms Energy Retail News.

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