“Money Dysmorphia” is something a lot of young adults struggle with nowadays! Find out what it is and why it happens!
Have you ever felt guilty after buying a coffee, even though you can comfortably afford it? Or maybe you constantly worry about running out of money, despite having a stable income and savings? If so, you might be experiencing a relatively new phenomenon called “money dysmorphia”.
In our image-obsessed culture, we’re surrounded by social media feeds overflowing with luxurious vacations, designer wardrobes, and extravagant lifestyles. But what happens when this constant comparison breeds a distorted view of your own financial reality? This is what we are going to talk about!
What is “Money Dysmorphia”?
“Money dysmorphia” is a term used to describe a distorted perception of your financial reality, often blowing it out of proportion. It describes a fixation on feeling poor or financially insecure, even when you have a objectively healthy financial situation. And according to a recent report by Credit Karma, about 29% of Americans experience it, often from comparing their financial situation to others’.
“Money dysmorphia is kind of like today’s version of keeping up with the Joneses,” said Courtney Alev, consumer financial advocate at Credit Karma.
They also said that “money dysmorphia” is more prevalent among youger generations, 43% of Gen Z and 41% of millennials struggle with it. This highlights a growing concern, once they face an increasingly challenging economic landscape with rising student loan debt and a competitive housing market.
Why does “Money Dysmorphia” happen?
There are several factors that can contribute to it:
- Social Comparison: the constant unrealistic portrayals of wealth on social media can make it easy to feel like you’re falling short. And according to Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville – Florida, this is one of the main sources of the problem.
- Upward Mobility: the pressure to constantly achieve a higher financial status can lead to feelings of inadequacy, even if you’re making progress.
- Financial Anxiety: debt, job insecurity, or unexpected expenses can trigger anxiety and a distorted view of your financial stability.
- Lack of Financial Literacy: not having a good understanding of personal finance can make it difficult to manage your money effectively and create a realistic budget.
Am I struggling with “Money Dysmorphia”?
Here are some signs that you might be experiencing it:
- You constantly worry about running out of money, even if you have a stable income;
- You feel guilty spending money on anything but necessities, even small pleasures;
- You hide your financial situation from friends and family out of shame;
- You compare your financial situation to others and feel inadequate;
- You fixate on financial setbacks and have difficulty moving forward.
How can I overcome it?
- Acknowledge the negative thoughts and social comparisons that are fueling your anxiety. Are they based on reality or unrealistic expectations?
- Monitor your income and expenses to gain a clear picture of your financial situation. This can help you identify areas where you can cut back and develop a realistic budget.
- Don’t compare yourself to others. Set achievable financial goals that align with your values and income level. Celebrating small wins can boost your confidence and motivation.
- If money dysmorphia is causing significant distress, consider talking to a therapist or financial advisor who can help you develop healthy coping mechanisms and financial management skills.
Additional Resources
- The National Foundation for Credit Counseling offers free resources and counseling to help you manage your debt and improve your financial health.
- The Financial Therapy Association can connect you with a therapist who specializes in helping people with money issues.