If it seems like no matter how much money you make, you feel financially insecure, or no matter how stretched you are, you still spend impulsively, then you may be experiencing money dysmorphia. René Basson, Head of Brand at Satrix, says, “This is an internet term, not a clinical one, but it describes a very real feeling of a rocky, warped relationship with one’s finances. Social media exacerbates feelings of inadequacy, making many people wonder why they can’t keep up. To grow in confidence about your financial journey, consider meeting with an adviser to establish an investment routine that suits you best.”
Basson says money dysmorphia ‘shows up’ in two ways. A social media scroll can make you feel as if ‘everyone’ is holidaying in exotic destinations, making you wonder why you’re falling behind – when in reality, you’re fine financially. Or perhaps you’re deep in debt but you keep chasing dopamine hits from purchases that stretch your finances further.”
Basson adds, “A survey by Credit Karma found 43% of Gen Z and 41% of millennials have experienced some form of money dysmorphia. These generations – notably known for digital savviness – seem particularly prone to financial insecurities. This can lead to irrational decision-making, which impacts future outcomes. The antidote? Having a solid plan in place and pursuing empowering patterns of behaviour like investing.”
Morphing money:
Anyone, at any stage of their financial journey, can feel dysmorphia. In South Africa, where inequality is acute, many people grow up in homes with a tight budget. This feeling of financial precarity may continue to restrict enjoyment of money, no matter how financially successful an individual is. This is often termed the ‘phantom limb of poverty’ or ‘post-brokeness stress disorder’.
Conversely, perhaps you have growing debts, but you just can’t stop spending. Basson adds, “It doesn’t help to keep scrolling and seeing what we perceive as others living their best, most luxurious lives. Add to this, the thousands of clickbait articles on people who ‘made millions by 30’ or ‘retired by 25’ and it’s no wonder people feel pressing anxiety and less confident in their choices when it comes to money.”
It’s also worth noting that harmful stereotypes hurt too. Women, from early on, often internalise ideas like ‘women are bad at money management and tend to overspend’, or ‘women don’t invest or take risks’. This happens even though Fidelity studies, for example, have found that women tend to be better savers and investors than men. Basson adds, “No wonder women can feel acute dysmorphia when it’s ingrained through the language society uses.”
Some stress around money is completely normal, especially given the current climate of high inflation and interest rate cycles. However, Basson says that if you find yourself in patterns of thinking that harm your financial wellness and confidence, it’s time to make a change.
Shifting money dysmorphia:
What’s Your Real Situation? Start by assessing your real financial picture. Possibly, you’ll need a financial adviser to help you see your situation holistically. Once you know the nitty-gritty, you can come up with a realistic financial roadmap.
What Are Your Goals? Goal-based investing is a powerful mechanism to incentivise action. Think about what you want to achieve in the next few years. Set up investments towards these goals, taking their time frames into account. This will help you claim back control.
What’s Your Pattern? Find yourself always worrying about your finances and future. Or do you keep impulse spending when you’re stressed? Gently note your patterns and consider working with a coach or counsellor to start integrating cognitive strategies to promote healthier, more productive cycles of thought and behaviour.
Values-Based Money Mindsets: Think about what’s important to you. Are your values aligning with your spending, saving, and investing behaviours? Introspection around what matters to you can be a powerful incentive to switch to healthier habits.
Assemble a team: Think about what your pain points are and get the right professionals in place to help you move forward. Dealing with debt? Consider a credit coach. Need a plan? Talk to a trusted intermediary.
Keep investing: Benefitting from compounding investing returns is hugely empowering. If you can keep contributing to a diverse investment portfolio and watch this grow, it’s very vindicating, and it can help build confidence in your financial future. Just start the journey, whether you have a lot or a little.
Basson concludes, “You deserve to live your best and most fulfilled financial life now and in the future. That means feeling in control and empowered to make the right decisions to move towards your goals. Starting your investing journey can help put you mentally back on track and in the driver’s seat of your finances – and life. It’s brave to seek help if you need it. Get the right people onside to prioritise your mental and financial wellness.”
PERSONAL FINANCE