‘Money Dysmorphia’ is a term coined to describe a skewed view of one’s financial status, that often doesn’t align with reality. Causes can vary from past financial difficulties and societal expectations to childhood trauma related to money.
Sufferers of ‘Money Dysmorphia’ may overestimate or underestimate their money situation leading to reckless spending or crippling frugality. In severe cases, irrational fears about bankruptcy can predominate, irrespective of the actual likelihood of such a situation.
Professional help, whether via a mental health expert or a qualified financial planner, can prove crucial in dealing with this problem. The stigma surrounding ‘Money Dysmorphia’ can be reduced through open discussions and better awareness leading to healthier attitudes towards money and its management.
Recent research indicates that this issue is widespread with nearly a third of Americans exhibiting symptoms. It is somewhat akin to the ‘Keeping up with the Joneses’ syndrome but is more psychologically rooted with sufferers constantly feeling financially inadequate when compared to their peers.
Youths seem to be greatly affected by ‘Money Dysmorphia’.
Comprehending ‘Money Dysmorphia’ and consequences
Studies reveal almost half of Gen Z and millennials suffer from the condition, in stark contrast to the 25% of Gen Xers, and barely 14% of the over-59 population. This disturbing trend amongst the younger generation suggest a distorted perception of wealth and financial standing.
The rise of social media and negative economic headlines are key contributors to ‘Money Dysmorphia. They often lead to distorted perceptions of financial well-being as individuals compare their own fiscal situations with the affluent lifestyles glorified online. To counter such distortions, it is essential to seek reliable information and professional financial advice.
The tangible impacts of ‘Money Dysmorphia’ can lead to extreme behaviours like oversaving or overspending. It is important to recognize and address this issue as it can lead to stress, debt and even severe anxiety or depression for some.
Constant anxiety about money, excessive saving, avoiding financial discussions, extreme fear of financial disaster and unnecessary self-blaming over money decisions are all symptoms of ‘Money Dysmorphia’. People may also obsess about their financial status resulting in either unwarranted frugality or excessive spending.
Understanding the psychological aspects of financial behaviours can help in dealing with this condition and promoting better financial well-being.
