Money dysmorphia – What is it and how to cope with it?
Money dysmorphia, akin to body dysmorphia, describes a condition where individuals perceive financial insecurity despite their actual stability. This phenomenon particularly impacts younger earners:
According to a recent American financial survey, 43% of Gen Z and 41% of millennials report experiencing money dysmorphia. Many affected individuals feel a sense of being financially ‘behind,’ even if they are financially secure or have substantial savings.
So, what causes these feelings?
Both Gen Z and millennials have faced unique challenges, such as a pandemic and economic downturn, which have hindered their career advancement compared to older generations. Coupled with significant student loan debt and rising living costs, many traditional life milestones like owning a home or starting a family are often postponed or out of reach.
Interestingly, more than half of those experiencing money dysmorphia in the survey aren’t just seeking financial stability, but aspire to wealth. The survey suggests that constant exposure to social media, where influencers and celebrities showcase extravagant lifestyles, fosters unrealistic comparisons. This can lead to poor financial decisions, such as overspending to keep up.
It’s important to note that brands often provide free products or experiences to influencers and celebrities due to their large followings, creating a misleading impression of their actual financial status.
Causes of money dysmorphia
Money dysmorphia primarily arises from the intense desire to keep up with others, a form of anxiety exacerbated by constant self-comparison. Dokun describes it as triggered by comparing oneself to others, a phenomenon exacerbated by reality TV and social media.
Reality TV and social media offer a close-up view of opulent lifestyles, making them appear normal and attainable. This portrayal sets an unrealistic standard of living that many people cannot realistically achieve, causing anxiety and feelings of financial inadequacy.
The media often depicts a lifestyle as ‘normal’ that is far beyond the financial means of most individuals. This disconnect can create significant anxiety and lead individuals to believe they are falling short financially.
On social media, it’s common to see influencers showcasing million-dollar homes, luxurious vacations, and dining at Michelin-starred restaurants. They often present a polished image with perfectly styled hair and manicured nails. This stark contrast to everyday reality, where many struggle to afford basic necessities, can deepen feelings of inadequacy.
Comparison isn’t the sole trigger of money dysmorphia; traumatic experiences related to money can also contribute.
Individuals who grew up in poverty, for instance, may feel compelled to demonstrate their newfound wealth as adults. They might use their money to purchase expensive clothing, cars, or luxury items to compensate for the financial insecurity they experienced in childhood. Alternatively, they may develop a fear of financial loss and hoard money to prevent experiencing deprivation again.
How to cope with money dysmorphia
Developing a positive relationship with money is achievable. Here are strategies to overcome money dysmorphia and maintain financial well-being.
Experts suggest educating yourself about finances and creating a monthly budget. Equally important is reducing time spent on social media, where impulse buying and comparison-induced dissatisfaction are common pitfalls.
Understanding the root causes of your financial challenges is crucial for moving forward. Seeking guidance from a financial advisor specializing in financial therapy is recommended. Discussing your financial concerns can uncover hidden issues and provide strategies for managing them.
Reflecting on your financial history can prevent it from impacting your future negatively. Opening up about money-related anxieties enables you to address issues such as overspending or the urge to flaunt wealth. Finding healthy ways to manage these emotions is essential for maintaining financial stability.
Money dysmorphia – What is it and how to cope with it conclusion
Money dysmorphia, while not clinically diagnosed, is a phenomenon that affects many individuals’ perceptions of their financial situation. It can lead to feelings of inadequacy, stress, and even poor financial decisions. By acknowledging your financial history and consulting with a professional, you can begin to unravel the distorted beliefs that contribute to this condition.
Understanding your financial past involves examining how your upbringing, experiences, and societal influences have shaped your relationship with money. It’s about recognizing patterns of behavior and attitudes towards finances that may no longer serve you well.
Overcoming money dysmorphia requires self-awareness, education, and a commitment to personal growth. It’s a journey toward financial well-being that can lead to greater peace of mind and a more secure financial future.
