Financial anxiety is not a new concept—many people struggle with how to spend their money, save for retirement, and manage their finances. One term that encompasses all of this is ‘money dysmorphia.’
So, what is money dysmorphia?
Don’t Miss:
“Money dysmorphia is when you have a warped or distorted view of your finances,” Danielle Desir, a personal finance expert and host of “The Thought Card” podcast, told HuffPost. “You see your financial situation much differently from your reality. Money dysmorphia can be caused by a variety of reasons, including past money trauma, societal pressures, economic crisis, or could be deeply rooted in childhood upbringing.”
A recent Credit Karma study shows that 29% of Americans experience money dysmorphia, and the problem is much greater for younger generations. About 43% of Gen Z and 41% of Millennials experience money dysmorphia, compared to 25% of Gen X and 14% of Boomers.
Elizabeth Ayoola, a personal finance writer at NerdWallet, told HuffPost that those with money dysmorphia often view their finances subjectively rather than objectively. This skewed perception can manifest in several ways:
-
Saving excessively: Some people may save excessively because they feel they are falling behind their peers.
-
Overspending: This becomes a problem for people who feel they are more financially secure than they are.
-
Strong emotional reactions: Experiencing anxiety, sadness, frustration, or unworthiness when confronted with friends’ financial milestones can be a sign of money dysmorphia, especially when it leads to unnecessary spending.
-
Lifestyle choices: People may live lifestyles they can’t afford, or conversely, may be financially secure but deny themselves enjoyment because they think they don’t have enough.
-
Obsessive behaviors: Constantly checking bank balances, avoiding discussing finances, comparing oneself to others, and feeling guilty about necessary purchases are common among people with money dysmorphia.
Trending: Miami is expected to take New York’s place as the U.S. Financial Capital. Here’s how you can invest in the city before that happens.
Social media has not helped the issue. When people share the parts of their lives that appear more extravagant, it evokes a sense of needing to “keep up with the Joneses.” Seeing the seemingly perfect lives of others can skew one’s perception of their finances.
Another reason for many struggling with money dysmorphia is this obsession with being rich. Credit Karma says that 27% of Americans are obsessed with the idea of being rich, and of those with money dysmorphia, 54% are obsessed with wanting to be rich.
Courtney Alev, a consumer financial advocate at Credit Karma, says there are a few ways individuals can overcome money dysmorphia:
“If your goal is to build up your savings,” she says, “start by doing an audit of your finances to see where in your budget you can make room for savings. From there, you can schedule automatic payments from each paycheck to help hold you accountable and incrementally increase your savings.”
Addressing money dysmorphia requires a blend of self-awareness, education, and sometimes even professional guidance. Recognizing these signs in yourself is the first step toward reclaiming a healthier relationship with finances. Whether saving excessively, overspending, or constantly comparing your financial situation to others, seeking support from a financial advisor can provide invaluable perspective and practical strategies tailored to your individual needs.
Read Next:
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article You May Be Suffering From ‘Money Dysmorphia’ — Almost One-Third Of Americans Are And Here’s Why originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
