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Do you suffer from money dysmorphia?
A study has revealed that the younger generation is the most likely to have money dysmorphia with comparison to others being the main culprit.
Money dysphoria is something that most might not have heard of before, but its something that a lot of people actually suffer from – and something that can actually negatively impact both your finances and your mental health.
What money dysmorphia really is
When you hear the word dysmorphia your mind likely rushes to the body kind. Money dysphoria takes on the same premise of having a warped sense of the reality of your finances. It can work both ways – having stable finances but feeling like you don’t, or having unstable finances yet acting completely the other way.
Financial expert Jeff McDermott defined money dysphoria to News 4 Jax as when you look in the mirror and you see somebody different from the person that is really there. You may be doing well and have trouble feeling financially secure or you may be less secure than where you really are, and doing things that dont line up with where you currently are on your financial journey. �
Those who find themselves with money dysphoria may find themselves lumped with feelings of anxiety and uncomfortableness after buying an item or booking a trip, for example, that they have budgeted for and can afford. Instead, they get that pang of unease and panic that they shouldnt have done it, even though they truly can. It also often leads to people making inadequate plans for the future of their money, believing that they dont have enough to do so.
In an article for The Guardian, writer Mona Chalabi wrote frankly about her own money dysphoria, sharing: I feel like I do not have money, even though I do. I know objectively that I can go out to lunch, order a $17 burger, and have plenty of money left over. But still, Ill sit at the table stewing with anxiety over what I might need that money for someday. �
Young people are more likely to have money dysphoria
A new study by Intuit Credit Karma found that young Americans are the most likely generation to say they experience money dysmorphia. Nearly half of Gen Z surveyed and 59% of millennials said they feel behind financially.
Almost one in four of those who reported experiencing money dysmorphia also reported having over $30,000 in savings – showing how unmatched those feelings of insecurity are with the reality.
Why so many suffer from money dysmorphia
Its hard to pinpoint the exact reason, but experts believe it could be a classic case of comparison.
A lot of people are examining their finances and comparing themselves to their peers, people on social media, and even celebrities, which is bringing up feelings of inadequacy, Courtney Alev, consumer financial advocate at Credit Karma, said in a release.
Money dysmorphia is also being multiplied by a cultural obsession with money and getting rich among Gen Z, which could be causing financial insecurity. According to the Intuit Credit Karma Study, almost 44% of Gen Z and 46% of Millenials say theyre obsessed with the idea of being rich.
Its an idea also shared by Ali Katz, founder of the Family Wealthy Planning Institute, who told CNBC: Were so wealthy, were so rich comparatively, but then of course were comparing ourselves to Jess Bezos and Elon Musk. Katz explained that in the wider picture of the whole world, most Americans experiencing money dysphoria are wealthy.
