Increased instability, job losses, and record inflation have pushed society to the edge, and we’re now facing the very real possibility of having to cope with a recession (or possibly a depression). 

That certainly isn’t good news, as recessions and economic downturns are scary times, but it isn’t necessarily entirely doom and gloom either. As long as you take steps to protect yourself and your family from taking too much financial damage, you should be okay. That’s why we’ve put together this list of tips for managing your finances during an economic downturn.

Protect Your Future

While making it through your present-day obstacles is your main concern, it’s crucial to ensure you’re not putting your future self at risk so that current-you can be a little more comfortable.

So, if you have a self-managed super fund, now is the time to enlist the assistance of one of the best SMSF specialist accountants in town. Those with commercial funds should also re-evaluate their strategy and check whether their current fund is performing at an acceptable level.

Make (and Stick to) a Recession Budget

Your usual budget won’t cut it during an economic downturn. Instead, you need a specific recession budget. This type of budget includes increasing the buffer you have in your emergency fund and cutting costs, the latter of which we’ll look at more deeply in the following sections.

Diversify Your Income

You’ll also want to build additional income streams, so you’re not reliant on your primary paycheck. That could include a side hustle, selling things you no longer need, or doing odd jobs advertised on local platforms and noticeboards. 

Pay Yourself First

Even in a recession, saving should still be a priority. If you struggle to have funds left to save at the end of your pay cycle, try using the pay-yourself-first method. This strategy is particularly helpful if your emergency fund isn’t looking too healthy at the moment. However, paying yourself first can also help you reach financial goals you may not have otherwise been able to achieve. So it’s worth practising, no matter what your current situation is.

Look at Ways to Cut Costs

In addition to shopping around for groceries and seeing if your utility providers can give you a better deal, it’s also a good idea to look at ways to reduce your cost of living without sacrificing your lifestyle. While some sacrifices may become essential if times get rough, increasing the buffer between your expenses and income is always a good idea. Indeed, it is a vital step in preparing for a recession.

Invest if You Can

Finally, although spending extra money seems counter-intuitive when the world is going to hell in a handbasket, investing now can be highly beneficial to Future You if it’s within your means. That’s because stocks essentially “go on sale” during economic downturns, meaning you’ll be able to get a slice of the pie at a significantly reduced cost. 

Remember that your strategy needs to be long-term to provide the most benefit, so you need to avoid panicking over the state of your investment fund when times are tight. Also, follow the golden rule of only investing amounts you can’t afford to live without.

Recessions aren’t fun, but they don’t have to be the end of the world. Take steps to protect the financial security of yourself and your family, and you should be able to ride it out. Good luck, and don’t be afraid to ask for help if you need it. 

As a workplace leader, it is paramount that you prioritise the development of a good work culture. Some of the many benefits of promoting and cultivating positive workplace culture include improved employee engagement, increased retention and higher rates of productivity amongst many others. Having a strong corporate culture is an achievable goal for any and every business. However, this doesn’t always just happen naturally. In some instances, toxic behaviours can quickly become rampant in the workplace and it is vital that managers and business owners get on top of unpleasant situations sooner rather than later. 

To help you better identify the types of culture and behaviour that should not exist in the workplace, we have prepared a list of 7 workplace culture crushers that you should avoid at all costs. If it is your personal goal to foster a positive environment at the workplace, you definitely need to read on to find out more. 

1. Overworking Your Employees 

Are your employees constantly working overtime, day after day and month after month? Stress from being overworked can lead to a myriad of health problems such as insomnia, depression, anxiety and in more serious cases, heart disease. Aside from the mental toll overworking can have on an employee, sitting at a desk for hours on end can affect posture, stress levels and overall general health. It will come as no surprise that poor health can result in more sick days, high turnover, and rising health-insurance costs which can have a huge adverse effect on your bottom line.

The Solution: Avoid overloading employees with work they can’t manage during their normal working hours. You can also promote a more active lifestyle by encouraging staff to take daily walks or even consider investing in a few stand-up desks from https://standdesk.com.au. 

2. Clique Culture

Clique culture doesn’t simply end when you graduate from high school. In fact, 43% of workers who were surveyed say their offices are populated by cliques—which are tightly knit groups of co-workers who socialise in and outside the office, and often exclude others. Of course, there is nothing wrong with having friendly employees who socialise with each other, but when “clique culture” comes into play, it may result in other employees feeling left out and demoralised. In essence, clique culture is the direct opposite of an inclusive culture as it creates an environment where people do not feel free or comfortable being their authentic selves.

The Solution: Eliminating clique culture starts at the very top of the organisation. It is important that upper management model the behaviours and the atmosphere that is expected of staff. Your organisation should also have a list of values that dictates how you treat each other both within and outside the workplace. 

3. Office Gossip

We’ve all been guilty of spreading gossip at some point in our lives. Unfortunately, when this bad habit is brought into the workplace, employees end up turning against each other, resulting in a divided workforce. The harsh truth is that gossip and rumours have the ability to destroy a person’s self-confidence and affect their self-esteem. If you’re noticing that the rumour mill is churning more often than not in your workplace, it is vital that you address the situation head on.

The Solution: Identify individuals who seem to be involved with gossip most frequently and speak to them on a one-on-one basis. Emphasise the importance of fostering a positive work culture and be sure to also formally address the entire company to communicate that such behaviour will not be tolerated.

4. Unfriendly Competition

A little healthy competition is always a great thing in the workplace, but when healthy competition inches its way into unhealthy territory, you open your workforce to a myriad of detrimental issues and problems. Having competition as the focal point of your culture can breed animosity between employees and generally sabotages or prevents ‘rival’ success.

The Solution: Avoid placing too much value on performance. Pitting individuals against each other will only frustrate employees and undermine their value as individuals. Instead, stress on the importance of teamwork and create a platform for individuals to congratulate fellow colleagues for a job well done. 

5. Lack Of Employee Recognition

At the end of the day, we are all human beings who strive to be accepted and recognised for our efforts. If your organisation seems to be lacking on the employee recognition front, you may end up with an unmotivated workforce that doesn’t perform to the best of their ability. Recognition 

helps employees feel like their company values them and creates a sense of security in their value to the company. 

The Solution: Carve out some time in your monthly meeting to recognise and appreciate other employees and implement regular employee spotlights. A simple pat on the back or “you’ve done a great job!” can also do a lot more for morale than you might think. You could even go the extra mile by rewarding your staff with monthly company lunches or get-togethers to show how much you appreciate their efforts. 

6. No DEI Policy

A diversity, equity and inclusion (DEI) policy is an absolute must have in any modern organisation. DEI policies encourage representation diverse groups of people, including people of different races, abilities and disabilities, genders, religions, cultures, ages and sexual orientation. Failing to have a DEI in place can come across as management simply not giving a damn, which isn’t a good look at all. 

The Solution: If you don’t already have a DEI policy in place, it is time to implement one ASAP. You can do this by working with your HR team to draft and enact a policy that is designed to keep all employees feeling safe at work. 

7. Poor Management Styles 

Lastly, it can often be the poor management of a company that starts things on a downward trajectory. Warning signs of poor management styles can  include high employee turnover rates, low morale and unhappy team members. In fact, bad management has caused hundreds of organisations to permanently close their doors. The last thing you want is for your business to suffer due to poor management skills. 

The Solution: Ensure that your management staff is properly trained and are generally competent, honest and reliable. Every manager should be equipped with the skills to communicate clearly with employees and have a clear understanding of their responsibilities and role in the company. 

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A strong and positive company culture is vital for your company’s longevity and business success. We hope that this list of negative workplace cultures to look out for aids you in building an exciting culture that will entice job seekers and retain employees for years to come.