Ways to Maintain Psychological and Financial Well-Being During Economic Recessions

What is Resesyon?

A recession is a situation in which the growth rate of an economy slows down or declines over a period of time. This is often seen in conjunction with economic indicators such as rising unemployment and decreasing consumption and investment. Traditionally, it is a situation in macroeconomics where real gross domestic product grows negatively for two or more consecutive quarters.

2- What is Psychological Well-Being?

Psychological well-being is the good mental and emotional health of a person. This includes features such as having positive thoughts, high self-confidence and self-esteem, and the ability to manage stress.

3- What is Financial Well-being?

Financial well-being is the well-being of a person's finances. This is possible if the person manages to save enough, manage their debts, and invest in their future.

4- How to Maintain Financial and Psychological Well-Being During Recessions?

In order to maintain financial and psychological well-being during recessions, it is important to evaluate internal and external factors first.

Internal factors are those that are under a person's control and can influence. For example, internal factors for a person's financial well-being include the ability to manage their expenses, the ability to save, the potential to achieve career goals, and the ability to manage stress. In addition, internal factors for psychological well-being include one's self-confidence, self-esteem, positive and negative influence of thoughts, motivation and desire to achieve life purpose.

External factors, on the other hand, are factors that are not under a person's control. For example, factors such as economic conditions, working environment, family environment and social environment can be counted as external factors for financial and psychological well-being.

To protect your financial and psychological well-being during recessions, you may consider doing the following:

Make a budget and organize expenses: During recessions, making a regular budget and regulating spending can help you maintain your financial well-being. This helps you determine what expenses are necessary and what expenses you can cut back on.

Stay positive: Recessions can be difficult, but learning to think positively can help you maintain your psychological well-being. It means believing that tough times will pass and thinking positively.

Look for ways to reduce your stress: Stress can negatively affect your psychological well-being. You can do meditation, yoga or other relaxing activities to reduce stress.

Make your payments on time: Making your payments on time can help you maintain your financial well-being. You can set payment reminders and set a specific day to make your payments. Paying upfront reduces interest payments and can help you maintain your financial well-being.

Find a support group: Recessions can be difficult, and finding a support group during these times can help you maintain your psychological well-being. This can be your friends or family members, or you can join online forums or community groups.

Exercise regularly: Regular exercise reduces stress and can help you maintain your psychological well-being.

5-What are the issues that companies should address?

First, companies need to first examine market conditions and customer demands. In this way, they will be able to take strategic decisions that will increase the competitive advantage of companies and gain customer loyalty.

Secondly, it is important for companies to optimize costs by reducing unnecessary expenditures in order to increase operational efficiency. In this way, companies will be able to earn higher profits by using fewer employees and less resources.

Third, there may be a decline in sales during recessions due to reduced demand in the market. Therefore, companies need to reach new customer potentials by opening new markets.

Fourth, it is important for companies to be able to respond to market needs by offering innovative products and services. In this way, companies can maintain their competitive advantage and gain customer loyalty.

Finally, it is important to make the work environment positive in businesses so that companies can maintain the motivation of their employees during recession periods. For example, it may be a good idea to decorate the workplace environment so that employees can have a more enjoyable time at work, to organize activities related to the hobbies of employees or to organize a reward at work, to share the achievements of employees with senior executives and to tell employees how important their work is. In this way, employees will be more productive and more successful.

6-What can employees do?

Be open to learning: In recessions, innovations and new opportunities are less. Therefore, employees can strive to improve their self-learning skills. This can range from learning new technological skills to learning about new business models.

Show dedication to work: During recessions, employees' greater dedication to their jobs may make their employers tend to keep their jobs. This can happen by employees working more time on their jobs or putting more effort into their jobs.

Collaborate: During recessions, employees can collaborate with each other to make their work more efficient. This can happen by having employees help each other and coordinate their work more effectively.

Make your job loveable:  In recession periods, employees can enjoy their jobs and enable them to have higher levels of motivation. This can happen by making employees' jobs more enjoyable.

Create a good working environment: In times of recession, a good workplace environment for employees can lead to higher work efficiency and better collaboration among employees. This can happen through employees supporting and helping each other.

Get private life support: It is important to take time and care for yourself, family and friends. Seek support from friends and family members. They may be willing to cheer you up and help you. You can also get professional support by going to a therapist or counselor. These people can work with you to help you overcome the difficulties you are experiencing during this period.