Recessions Effect on Mental Health Economic downturns are often discussed in numbers, i.e. GDP declines, unemployment rates rise, inflation eats into purchasing power. Yet beneath these statistics lies a quieter, more personal crisis: the mental well-being of ordinary people. When economies contract, anxiety expands. The uncertainty surrounding income, job stability, and personal security weighs heavily on individuals, families, and communities. This psychological dimension of economic decline is often underestimated, but it has profound and lasting effects. The topic has been studied extensively and I suggest reviewing the 2016 metanalysis by Frasqhuilo et al as a complementary read to this article. Financial Stress as a Psychological Burden Money is rarely just about money. It represents autonomy, safety, and a sense of control over one’s life. During an economic downturn, these pillars weaken. Research shows that financial insecurity correlates strongly with symptoms of depression ...

Therapy When You Have No Money Life can be tough, and we all face challenges that can leave us feeling overwhelmed, anxious, or even depressed. In an ideal world, we'd have the means to seek professional therapy to help us navigate these rough waters.  However, when finances are tight, and the prospect of affording therapy seems like a distant dream, what can you do?  This the though reality of an increasing amount of individuals, especially with the worsened financial climate. This InvestorsPsychology attempts to provide some alternatives for therapy on a budget. Photo by Towfiqu barbhuiya at Pexels.com Seeking Support on a Tight Budget One of the most important steps in bolstering and protecting your mental health is making sure to talk to someone about your problems.  Speaking to others not only eases the emotional burden of your struggles, but also forces you to reflect and gain valuable perspective, which is a vital component in recovery from poor mental health. Be...

  Psychiatrist vs psychologist: A simplified infographic by Investors Psychology Psychiatrist vs Psychologist: Education, Work, Salary and More In this article you'll gain valuable insights into the distinctions between a psychiatrist vs psychologist as we delve into their education, work tasks, work hours, and salary considerations. Whether you're exploring mental health professions or seeking assistance, understanding the differences is essential, as many often get confused what the differences is between psychiatrists and psychologists.  Article Key Points Psychiatrists are medical doctors (M.D.) who complete around 11-13 years of education, including a bachelor's degree, medical school, and a psychiatry residency program. Clinical psychologists pursue doctoral degrees in psychology, requiring 8-12 years of study. Psychiatrists diagnose, treat, and manage mental illnesses, prescribing medications, providing psychotherapy, collaborating with professionals, and conducting ...

Image by Freepik The Psychology of Money Summary The Psychology of Money is a phenomenal book that was written by Morgan Housel and published in 2020.  Morgan Housel  is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal.   In The Psychology of Money Housel is trying to teach the reader how to better approach money and finances in life, as well as understanding the psychology behind it.  Hence, the Psychology of Money summary and the 10 main lessons that we at Investors Psychology thought were the most important. We highly recommend reading the full book if you have the time. The 10 Takeaway Points 1. Reality is not theory, theory is not reality Housel makes the point that humans are not emotionless robots . Learning something new from a book or article is not the same at being able to apply that same new knowledge in real life. Actually weathering through a bear market is much easier said that done, even though...

Market Cycle Psychology Market cycle psychology is an interesting phenomenon. The price trend in different markets tend to follow certain patterns (whether it's stocks, commodities, housing, or cryptocurrencies). This holds especially true in a so-called market bubble . Market cycle psychology is not an exact science but can roughly be explained by the nature of human psychology in relation to fear and euphoria, as well as collective thinking .  Fear and euphoria play an important role in investors psychology in general.  Fear of regret , for example, is a well-known concept that refers to the human mind anticipating regret and subsequently avoiding it. The infamous FOMO, also known as fear of missing out , is strongly dictated by fear of regret. Strengths and Shortfalls of Market Cycle Psychology Understanding the concept of market cycle psychology can be beneficial on a macro scale when determining in what strategic direction you want to take your investments. Knowing in wh...

Fear of Regret In this article we cover the investor emotion known as 'Fear of Regret' . Fear of regret can lead investors into making poor investment decisions . Have you ever made an investment, only for the price (of a stock, bond, crypto, etc.) to drop and then you suddenly catch yourself unwilling to sell lower than your initial buy-in price? If that's the case then you might have suffered from Fear of Regret. Keep reading to learn more about it and how to avoid it during your future investments. Recommended Read: How To Stop Thinking About Money What is Fear of Regret? Fear of Regret is based on the ' Regret Theory ', which refers to the human psychology of anticipating regret if they were to make the wrong choice or take the wrong decision. Hence the psychological effect can impact your behavior and result in irrational decisions while investing. People hate admitting their mistakes and sadly this is one of the main drivers of Fear of Regret.  'Fear of R...