Life Style

Psychology behind Money Dysmorphia

psychology-behind-money-dysmorphia

Though you can afford a little champagne, it could be easier than ever to feel like you’re constantly on a beer budget because of the constant barrage of lavish use on social networks. And that’s known as “money dysmorphia.”

Although not wholly new, this terminology has been circulating online to characterize people’s frequently complex association with money. It stems from “body dysmorphic disorder,” a term used to describe a mental disease in which a person gets obsessed with an apparent bodily shortcoming.
An individual with unjustified financial insecurity is said to have money dysmorphia (not a recognized diagnosis). Finance experts believe that this mentality might result in financial blunders like extravagant expenditures or hazardous decisions.

Economic struggles, past financial hardships (like financial trauma), or constant comparing yourself to others—especially on social media where lifestyles can seem out of reach—can make things worse. Major life events, like an unexpected job loss or divorce, can also intensify existing money problems, leading to more stress.

Read More: “If Only I was like her!!”: How to Stop the Comparison Cycle

Signs to Identify Money Dysmorphia

How can you determine whether you have money dysmorphia? Each individual is unique and money dysmorphia can show up in a variety of strange and surprising ways, this list is by no means comprehensive:

  • Continuous financial worry: Regardless of your current financial circumstances, do you find yourself dealing with ongoing financial-related stress or anxiety? It may be a sign of financial stress if you find yourself checking your bank accounts or budgeting applications a lot because you’re worried about going over budget. Being aware of your financial situation is helpful, but too much monitoring can make you feel more stressed and anxious.
  • Comparing with others: People who suffer from money dysmorphia often compare their financial situation to others. Feelings of inferiority, jealousy, or superiority based on perceived financial success or failure might result from this kind of comparison.
  • Effect on relations and well-being: If you feel embarrassed about your financial situation, you may retreat from social interactions and find it difficult to participate in activities that demand cash outlays. Anxiety can be made worse by the loneliness brought on by financial hardship.
  • Obsessive hoarding or spending: Repetitive behaviours like collecting money and goods beyond necessities or splurging excessively on pointless things are signs of money dysmorphia. Rather than logical financial judgments, these behaviours are frequently motivated by underlying emotional motivations.
  • Difficulties in financial goal-setting: People who suffer from money dysmorphia may find it difficult to create and achieve reasonable financial objectives. They could struggle to prioritize their financial demands and feel overburdened by the idea of making plans.

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  • Neglect of Economic matters: Stress connected to money might make people ignore planning their finances or deal with financial issues completely. This behaviour might include ignoring bank statements, ignoring bills, or avoiding financial discussions. Although this avoidance may provide short-term stress relief, over time it may lead to increased worry and worsened issues.
  • Wealth-related negative self-image: Money dysmorphia frequently entails relating one’s value to their financial situation. If people believe they are not wealthy or successful financially, they may feel humiliated or undeserving, which can result in a poor sense of self-worth and unhealthy self-talk. Money dysmorphia is rooted in a sense of apparent inferiority, which is frequently impacted by social pressures, comparisons, or personal concern, whereas financial uncertainty is based on real economic hardship.

What causes Money dysmorphia?

There are many possible causes of money dysmorphia, and each situation is unique. Money dysmorphia, however, can be worsened by discussions about an increase in hustling and comparative culture, previous trauma (whether or not it has to do with money), and likely particular inclinations.

The media’s depiction of wealth, financial status, and early life experiences can all influence the formation of false views and misconceptions about money. Furthermore, persistent economic uncertainty or severe financial occurrences may make money dysmorphia symptoms worse. Perfectionism, depression, anxiety, low self-worth and low self-esteem are some theories about what might lead to money dysmorphia. Furthermore, we have a stronger connection than ever before to information on people’s socioeconomic presentations. We see modern family vehicles on Facebook, lavish banquets on Instagram, and exotic trips on TikTok.

Prevalence in Millennials and Generation Z

Compared to older generations to come, younger generations are more susceptible to money dysmorphia. Indeed, according to a 2024 Credit Karma survey, 41% of millennials and 43% of Gen Z suffer from money dysmorphia. The younger generation spends more time on social media, which contributes to this. Gen Z and millennials are also subject to particular financial strains, such as student loan debt, an unstable labour sector, and exorbitant living expenses.

Techniques to Overcome Money Dysmorphia

  1. Make Wealth a Tool: Again To start consider money a tool, not an intrinsic part of your traits or a gauge of your value. Rethinking your perspective on money enables you to escape the illogical similarities and unreasonable demands that feed money dysmorphia.
  2. Recognize Irrational Thoughts: Although it’s normal to be concerned about money, how we handle those feelings might affect how they affect us in the long run. Daily mindfulness meditation can help you face these thoughts and shift to a more optimistic perspective.
  3. Disprove Negative Beliefs: Become at ease questioning harmful financial assumptions. Be curious about the origins of that conviction and whether it’s true if you find yourself imagining, ‘I’ll never understand money, so there’s no point trying.
  4. Practice Gratitude: Another strategy to get over money dysmorphia is to be grateful for what you already have. Although it might seem ridiculous, studies show that expressing gratitude may significantly improve our mental health. Practice rephrasing your thoughts to recognize and value your financial achievements, no matter how minor, rather than dwelling on your imperfections.

Anybody may suffer financially or feel anxious about money, therefore it doesn’t determine your value as a person. It’s crucial to accept discussions about money since financial stress affects everyone. Seek assistance and guidance from a financial coach or clinician if your financial anxiety persists.

Read More: How much does a Financial Crisis matter?

References +
  • Causes of money dysmorphia – Google Search. (n.d.). https://www.google.com/search?q=causes+of+money+dysmorphia&oq=causes+of+money+dys&gs_lcrp=EgZjaHJvbWUqCQgBECEYChigATIGCAAQRRg5MgkIARAhGAoYoAEyBggCECEYFdIBCDU3NzdqMGo3qAIUsAIB&client=ms-android-oneplus-rvo3&sourceid=chrome-mobile&ie=UTF-8
  • Explained: What is money dysmorphia and why is Gen Z likely to have it. (n.d.). NDTV.com. https://www.google.com/amp/s/www.ndtv.com/feature/explained-what-is-money-dysmorphia-and-why-is-gen-z-likely-to-have-it-6206459/amp/1
  • Gould, W. R. (2024, October 2). How money dysmorphia can hurt your mental health and finances. Verywell Mind. https://www.verywellmind.com/money-dysmorphia-8713617#:~:text=Long%20story%20short%2C%20money%20dysmorphia,spiral%20and%20find%20some%20peace.
  • Yeo, M. (2024, June 19). Money dysmorphia: What is it, the signs and what to do about it – Planner Bee. Planner Bee. https://plannerbee.co/learn-personal-finance/money-dysmorphia-signs/#:~:text=Unhealthy%20financial%20habits:%20Money%20dysmorphia%20often%20coexists,but%20can%20lead%20to%20long%2Dterm%20financial%20consequences.
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