Overcoming Money Dysmorphia: A Guide to Financial Wellness
Money dysmorphia is a common issue faced by many individuals today. It refers to the negative and unrealistic perception of one’s financial wellness or position. Even if you are doing well for your age, you might constantly worry about your finances if you have money dysmorphia.
One significant factor contributing to money dysmorphia is the unhealthy comparison with others, especially on social media platforms like Instagram. People often showcase only the glamorous aspects of their lives, leading to a distorted view of reality and causing psychological damage in the long run.
Reading too many personal finance sites, like this one, can also contribute to money dysmorphia. Striving for financial freedom and following extreme financial strategies, such as maxing out your 401(k) or saving a large percentage of your income, may make you feel inadequate if you’re not currently meeting those goals.
However, it’s essential to understand that real life is messy, and setbacks are a part of the journey to financial wellness. By sharing the challenges and failures in my own financial journey, I hope to normalize the ups and downs of managing money.
Growing Money Dysmorphia and What to Do About It
A recent survey by Business Insider revealed that saving money is a significant source of stress for many adults, especially younger generations like Gen Z and millennials. The rising costs of housing and education contribute to financial burdens and impact decisions like starting a family.
To combat money dysmorphia and manage financial stress effectively, it’s important to track your finances diligently. Tools like Empower can help you gain a clear understanding of your cash flow, investments, and net worth. Knowing where you stand financially can alleviate anxiety and provide a sense of control.
Turning ambiguous financial goals into clear, achievable targets is another effective strategy to overcome money dysmorphia. By setting specific goals with realistic timelines and modeling different financial scenarios, you can create a roadmap for financial success.
Younger Generations Feel More Money Dysmorphia Than Older Generations
Recent surveys have shown that younger generations, particularly Gen Z and millennials, experience higher levels of money dysmorphia compared to older age groups. The pressure to achieve financial success at a young age, coupled with constant comparisons on social media, can exacerbate financial anxiety.
It’s crucial to recognize the unique challenges faced by each generation and avoid comparing yourself to unrealistic standards. Understanding that financial obligations and priorities have evolved over time can help alleviate the pressure to meet outdated expectations.
How to Overcome Money Dysmorphia
Here are five practical strategies to combat and overcome money dysmorphia:
1) Know Your Finances Inside and Out
Tracking your finances meticulously can provide clarity and peace of mind. Tools like Empower can help you stay organized and informed about your financial situation, reducing the risk of distorted perceptions.
2) Turn Ambiguous Goals into Clear Financial Goals
Setting specific financial goals with realistic timelines can help alleviate uncertainty and anxiety. By modeling different scenarios, you can create a roadmap for achieving financial success.
3) Stop the Self-Comparisons
Avoid comparing yourself to others on social media, as it can lead to feelings of inadequacy and financial stress. Reduce social media consumption and focus on your own financial journey.
4) Understand That Financial Obligations Have Changed
Recognize that financial obligations and priorities have evolved over time, and it’s okay not to meet traditional milestones at a certain age. Focus on your individual financial goals and progress.
5) Compare Properly if You Must
If you must compare yourself to others, ensure that the comparison is fair and relevant. Comparing yourself to someone with similar circumstances can provide a more realistic benchmark for financial success.
Conclusion
Overcoming money dysmorphia is a journey that requires self-awareness, perspective, and proactive financial management. By adopting healthy financial habits, setting clear goals, and avoiding unrealistic comparisons, you can achieve financial wellness and peace of mind.
If you’re struggling with money dysmorphia, remember that you’re not alone. Seeking support from financial professionals or joining a community of like-minded individuals can provide valuable insight and encouragement on your financial journey.