Whether it’s luxury vacations, designer brands, fancy cars, beauty aesthetics, or extravagant events, it’s easy to believe many people are wealthy.
According to WTXL, money dysmorphia occurs when someone has distorted or insecure views of their financial situation, no matter what it truly is, leading them to make bad financial decisions.
A recent Qualtrics and Intuit Credit Karma study found that 29% of Americans experience money dysmorphia. “Gen Z and millennials are obsessed with being rich,” according to Credit Karma.
“Money dysmorphia is today’s version of keeping up with the Joneses.” Courtney Alev, a consumer financial advocate at Credit Karma, said. “Many people are examining their finances and comparing themselves to their peers, people on social media, and even celebrities, which brings up feelings of inadequacy.”
Money dysmorphia isn’t new, but it has transformed.
During the Great Depression, the scarcity mindset rooted in fear was common. Now, according to Bloomberg, there is more of a cognitive dissonance from comparing where they are in their finances to where they should be.
The urge to compare comes easily today with TikTok, Instagram, and Linked In showing every shopping trip, lavish vacation, and the life of their dreams.
Ted Jenkins, the owner of Scripps Media, said, “What you’re viewing is likely not an honest picture of someone’s finances or reality, but it’s still pushing some to change their habits and ideals to match what they see.”
Scott Lieberman told Fortune Magazine, “Social media and celebrity culture can intensify money dysmorphia because we’re seeing images of people living sensational lives while spending money.”
Jenkins added, “No matter what, a person with money dysmorphia feels like they don’t have enough money.”
Some are stable with thousands of dollars in savings, but they always desire more savings, a bigger house, or a nicer car.
According to Intuit, almost half of Gen Z, 48%, and over half of Millennials, 59%, feel behind financially. The obsession and feeling of underperformance cause them to lose sight of their actual finances.
Bloomberg reported, “The only way to get out of money dysmorphia is to audit your finances, assess your goals, and make a realistic plan to work toward them. Also, minimize time comparing yourself to people most likely in a lot of debt.”
Life is more than material possessions. Enjoy life, become resourceful according to a budget, and concentrate on creating memories.