Money dysmorphia is a term that describes a negative and unrealistic view of one's financial situation. This phenomenon affects many young people today, particularly Millennials (born between 1981-1996) and Gen Z (born between 1997-2012). Despite being in a better financial position than they realise, many still feel constant anxiety and worry about money. Let’s explore what money dysmorphia is, why it affects young generations, and how it impacts daily life.
Understanding Money Dysmorphia
Money dysmorphia is much like body dysmorphia, where individuals see their body in a distorted way. In this case, people believe they are financially unstable even if they are doing well. This leads to unnecessary stress, feeling unsafe about their financial future, and excessive worrying about saving or spending. Many young people, despite having stable incomes, feel they are far behind financially, creating a feeling of never being “enough” with their money.
Why Does it Affect Younger Generations?
Young people today face different financial challenges compared to previous generations. In India, like many parts of the world, there is a growing gap between income and the rising cost of living. Many from the lower and middle class, especially young adults, feel pressure to meet unrealistic financial goals. This pressure is heightened by:
Table of contents [Show] Big Life Decisions | Younger generations are saving for significant milestones like marriage, buying a house, or changing careers. These transitions make them introspect about their finances, which can lead to worry. |
Comparing Themselves to Others | With the rise of social media, many people constantly see others posting about luxury holidays, new cars, and expensive items. However, social media only shows part of the picture. For instance, someone who appears to live lavishly may be in debt or using family wealth, but this isn’t visible online. |
Unrealistic Financial Expectations
Many financial lessons passed down from older generations no longer fit the current economic climate. For instance, pension plans were common for older generations, while today, people are expected to save for retirement on their own. Inflation and a higher cost of living further complicate saving. Because of these changes, many young people may feel they are not saving enough, even when they are doing the best they can in today’s economy.
Breaking Free from Money Dysmorphia
To avoid falling into the trap of money dysmorphia, it is essential to develop a balanced view of money. This includes:
Setting Realistic Goals | Financial goals should be clear and manageable. Saving for the future is important, but so is understanding that it’s okay not to have everything sorted right away. |
Avoiding Comparisons | Everyone’s financial journey is different. Comparing yourself to others on social media can fuel unnecessary anxiety. |
Adopting a Healthy Financial Approach | Rather than focusing on financial perfection, it is important to make a reasonable plan, spend wisely, and save for the future without overburdening yourself. |
Money dysmorphia can cause unnecessary worry and stress about finances. By understanding it and taking small steps toward better financial planning, individuals can gain control over their finances and reduce anxiety.
