The income situation is stable, expenses are manageable, reserves are available and yet the feeling remains that there is never enough. A psychological phenomenon is receiving increasing attention: Money Dysmorphia. It shows how far emotions and financial reality can drift apart.
Perception versus reality
The term “Money Dysmorphia” describes a cognitive distortion in dealing with one’s own financial situation, writes the New York Times. Despite objective stability, for example through regular income, reserves or low debts, a feeling of permanent insecurity arises. There are also opposite cases. An exaggerated lifestyle is maintained despite a lack of financial resources.
Causes between comparisons and imprints
According to survey results from the Credit Karma platform, people from generations Y and Z are particularly hard hit. Over 40 percent of these groups say they feel financially insecure, even though their objective income levels are often stable. The Financial Times points to the growing role of digital media. The daily consumption of social media content leads to a constant comparison with seemingly financially successful life plans. According to Jenius Bank, in addition to the influence of media presentation, the influences of early adulthood also play a role. An inflationary economy, the cost of higher education, or a pandemic create fear and a sense of constant struggle against financial realities, it goes on to say.
Between fear, repression and loss of control
Money Dysmorphia manifests itself in different ways. In some cases, an excessive fear of spending arises even when the financial situation does not cause concern. In other cases, control over one’s own budget is largely given up. Bills are ignored, expenses are no longer checked, debts are pushed aside. As Adelaide Now reports, typical behavioral patterns can be observed: permanent dissatisfaction with one’s own financial situation, constant pondering about money issues or highly impulsive spending behavior that does not correspond to economic reality. Such distortions can have far-reaching consequences, from missed investment opportunities to overconsumption as emotional compensation. Financial decisions are losing their basis in facts and are increasingly driven by internal tensions.
When money becomes a projection surface
At a time when financial self-realization is considered a social ideal, emotions and numbers are increasingly coming into conflict. The idea of always having to be better positioned than the bank account actually requires creates pressure – often silent and difficult to grasp. It becomes clear: the relationship to money is not just a question of mathematics, but also a question of self-perception. Anyone who only sees money as an indicator of success or security easily loses sight of what is actually there.
Editorial team finanzen.net