Women's Tabloid

Money Dysmorphia: The hidden struggle behind our finances

Money dysmorphia is a hidden struggle many face in today’s comparison-driven world, leading to anxiety and poor financial choices. Discover how to identify the signs and take control of your finances for a healthier, more secure future.

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By Krishnendu P
By Krishnendu P

In today’s world, it seems like everyone’s lifestyle is on full display. Flashy cars, luxury handbags, exotic island getaways—the never-ending stream of wealth-filled images on social media can leave anyone feeling like they’re falling behind. The problem is, even if you’re in a good financial position, these comparisons can make you feel as though you’re stuck on a “beer budget,” despite doing much better than you may think. 

In fact, Gen Z, who are most exposed to these pressures, have an average savings of just $2,410.57—significantly lower than the $23,000 held by Millennials or $156,000 by Baby Boomers. Similarly, the estimated average annual earnings for Gen Z are just $22,924.68, or about $1,910.39 per month. 

Though not an official medical diagnosis, money dysmorphia refers to a state of irrational financial insecurity, where individuals feel anxious or inadequate about their financial situation—even when they’re actually in a stable position. Financial experts believe this distorted view can lead to poor money decisions like overspending or risky investments.

With the rise of financial influencers on social media, endless discussions about inflation, and the omnipresent “comparison culture,” money dysmorphia is especially common among younger generations like Gen Z and Millennials. Constant exposure to curated versions of wealth can make anyone feel like they’re missing out—even when they’re already financially secure.

Signs you might be experiencing money dysmorphia

How can you tell if you’re dealing with money dysmorphia? While it manifests differently for everyone, here are some common signs to look out for:

Constant worry about money

Even when your finances are secure, the worry never seems to go away. This constant anxiety about not having enough money can be overwhelming, even if your financial situation is actually stable.

Obsessing over small expenses

While it’s natural to be cautious about large expenses, money dysmorphia can cause you to fixate on tiny purchases. This can lead to indecision or anxiety over even minor financial decisions.

Avoiding spending altogether

Ironically, some people with money dysmorphia avoid spending money entirely. They fear the consequences of spending too much, even when it’s necessary or reasonable to do so.

Comparing yourself to others

In the age of social media, it’s easy to compare your financial situation to others. This can lead to feelings of inadequacy, as it may seem like everyone else is doing better—even if that’s far from the truth.

Avoiding conversations about money

If talking about money fills you with anxiety, you might be struggling with money dysmorphia. This fear can make discussions about financial goals, setbacks, or even simple budgeting feel overwhelming.

Guilt after spending

Feeling guilty after spending money—especially on essentials—is another sign. This guilt can cloud judgment and result in emotional decisions rather than rational financial ones.

Compulsion to earn more

Even after reaching financial independence, some individuals feel compelled to earn more. This often stems from the belief that more money is needed to feel “good enough.”

Buying expensive items to feel adequate

When money dysmorphia sets in, it can lead to impulsive purchases like luxury handbags or flashy cars. These items are bought not because they’re needed, but to feel better about one’s financial standing or to impress others.

How to overcome money dysmorphia

If any of these signs sound familiar, don’t worry—there are ways to address the issue. The first step is understanding where your financial insecurities stem from. Money dysmorphia is often tied to deep-seated beliefs about money, which may have been shaped by past experiences or societal pressures. Here are some strategies to help you regain control over your financial mindset:

Acknowledge your financial past

Recognizing the root of your financial anxieties is essential. Speaking with a professional, such as a financial therapist, can help bring underlying issues to the surface and give you clarity on your situation.

Build financial literacy

A lack of financial literacy can fuel money dysmorphia. Educating yourself on the basics of budgeting, saving, and investing can build confidence in your financial decisions and protect you from misleading or unrealistic financial advice.

Create a monthly budget

A practical tool for overcoming money dysmorphia is creating a monthly budget. This will give you a clear picture of your income and expenses, helping you make informed choices. Over time, sticking to a budget will help you regain control and reduce the distortion in how you view your financial situation.

Identify your financial triggers

Pay attention to the moments when you feel anxious about money. Does checking your bank balance trigger stress? Do you regret purchases right after making them? Recognizing these triggers can help you manage your emotional response and shift your mindset.

Understand your beliefs about money

Ask yourself questions like:

  • Have I ever gone without money in the past?
  • Have I made poor financial decisions before?
  • Do I trust myself when it comes to managing money? Understanding these beliefs can help you uncover the roots of your financial insecurity and reshape your relationship with money.

Money dysmorphia may not be an officially recognized medical condition, but it’s very real for many people in today’s comparison-driven world. The constant pressure to measure up to curated portrayals of wealth can lead to a distorted view of one’s own financial reality. By recognizing the signs and addressing the root causes, you can take steps to build healthier financial habits and regain a balanced perspective on money. Remember, everyone’s financial journey is different, and true financial peace comes from within.

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