By The altered perception of one’s finances has various consequences, such as depression, debt and anxiety, among others. If you want to know more about its effects and learn about its symptoms, keep reading!
Money dysmorphia is a manifestation of an incongruity between reality and the mental economic representation of financial resources. It is somewhat similar to body dysmorphic disorder , in which there is an excessive appreciation of defects in the body, even though these are minimal and imperceptible to others.
In both cases, the coincidence is that reality is not in tune with the image that the mind creates. But in this article we will go deeper, in particular, into the problem in the monetary field, we will know its symptoms and we will learn how to deal with it.
What is money dysmorphia?
Money dysmorphia, also known as monetary dysmorphia, is a perceptual disorder in which a person believes that they have more financial resources than they actually do. This leads them to spend excessively, because they believe that they have more than enough.
Today, this problem has been exacerbated by the increased production of goods and services advertised on digital platforms. The market has taken over technology and instant communication to promote its brands and encourage consumption.
Many influencers create advertising campaigns to encourage people to buy products. In this context, people are persuaded by Internet celebrities, fashion and consumer trends on social media, which makes them spend and lose more money than they actually have.
The desire to fit in and be part of mainstream lifestyles has thus created a fertile ground for perceptual alteration at the economic level. At the same time, new ailments and concerns have begun to emerge that feed this type of dysmorphia.
What are the symptoms of money dysmorphia?
As it is not a recognised mental disorder , it is not possible to define a series of signs or symptoms supported by health sciences, psychiatry or psychology. However, it is possible to identify some common characteristics or traits in those who suffer from this problem:
- Obsessive ideas about being rich
- Inability to save money
- Stress and financial insecurity
- Altered perception about money
- Poor financial decision making
- Unnecessary spending on consumer goods
- Constantly comparing yourself to others
- Expenses that exceed the person’s budget
- Altered perception of economic limits
- Frustration due to lack of money to meet other needs
Consequences of money dysmorphia
When one does not act based on what one has, but on what one thinks one has, the economic results are not very encouraging. In addition, interpersonal tensions and psychological discomfort can occur. Let us look at some of the consequences.
Indebtedness
Owing money to others is one of the most prominent negative effects of money dysmorphia . Because the person believes they have more than they have actually saved, they spend based on that idea and generate more expenses than income. This can lead to borrowing money from others or banks to cover their debts.
Economic losses
The individual squanders more than he has and suffers economic losses by acquiring goods that are too expensive. The ease of accessing money through credit cards makes the individual continue buying unnecessary things. In this way, his debt increases.
Excessive accumulation
Buying most of the products you want or that are recommended by influencers can lead to an accumulation of unnecessary and useless things in the house. This excess of luxuries can cause conflicts with family or with those you live with.
Anxiety
Someone with this problem worries about their current financial situation, which is riddled with debt and financial difficulties. As a result, they become anxious about a financial catastrophe. Even though this prediction makes them more worried, they cannot help but give in to the money dysmorphia.
Depression
Financial dysmorphia can make an individual feel dissatisfied with his or her own life, which negatively impacts his or her overall well-being. In addition, financial difficulties, lack of financial success, and guilt over overspending may make a person feel inadequate, sad, and hopeless. All of these complaints lead to depressive states.
Money dysmorphia in millennials and generation Z
This dysmorphia seems to be more prevalent among millennials and generation Z. Probably because they are two population groups that grew up amid the latest technological advances.
Being digital natives, they are more exposed to market influences that are promoted every day through social media. Because of this, these people are more vulnerable to imitating consumer trends followed and recommended by famous influencers.
According to data from a survey conducted by Qualtrics on behalf of Intuit Credit Karma , “[…]43% of Gen Z and 41% of millennials said they experience money dysmorphia, compared to 25% of Gen X and just 14% of respondents age 59 or older.”
These findings partially support the notion that Generation Z and millennials are the most affected by distortions and the obsession with accumulating wealth.
Although these results cannot be generalized due to methodological limitations, they do draw attention to the impact that social and economic changes have on people’s lifestyle and health.
How to overcome money dysmorphia?
Since it is not an official disorder, no evidence-based treatment plans have been developed. Therefore, below we will offer general recommendations for dealing with this problem.
1. Accept the problem
The first step is to acknowledge that you have dysmorphia and commit to change. As long as you resist accepting your problem, it will persist. Acceptance involves embracing the experience without judgment or criticism, and then changing dysfunctional patterns.
2. Regulate your emotions
You may not be able to cope with the situation because you do not have enough emotional agility to regulate those impulses that motivate you to spend more than you have. Identify and name your emotions, feel them without trying to change them, do relaxation and breathing exercises to calm your mind. Focus on your goals and redirect the emotional impulse towards what you value.
3. Limit the use of social networks
Digital platforms are spaces where offers and advertisements proliferate, which can tempt you to follow the impulses of your dysmorphia. For this reason, we suggest you limit the time you spend on social media. Make a plan of moderate use according to your comfort; for example, set aside half an hour a day to browse your favorite platforms.
4. Meet your financial goals
Set financial goals that are easy to achieve, that are in line with your values and help you improve your relationship with money . A clear direction and commitment to it will give you greater strength to not lean towards your dysmorphia.
5. Seek financial advice
Financial guidance provides techniques to learn how to manage and distribute your monetary resources. By having tools to know what to do with your finances, you will improve the way you invest and avoid expenses that only generate debt.
6. Ask for psychological help
A psychotherapist will offer you strategies to regulate your emotions and impulses. Through his or her guidance, you will also learn about your patterns of action and how to change them in favor of your values, your mental health, and your financial stability.
Face and overcome the money dysmorphic problem
This dysmorphia may cause significant distress in the life of the person who suffers from it. It is known to have emotional, relational and economic consequences that deteriorate the quality of life.
In this article, you have also learned that it is a condition that affects, above all, millennials and those of generation Z. Fortunately, it can be addressed and overcome through psychological support and guidance from financial experts.