"I didn’t dream about my wedding day or meeting my Prince Charming as a little girl. Instead, I fantasized about high-end fashion, nice cars, and a life of luxury. Thankfully, my desire for financial independence has always kept me in check. My savings account covers more than three months’ worth of expenses, I pay my bills in full and on time, and I have minimal debt. All of this should be comforting. Yet, inflation, coupled with mass layoffs in my industry, has left me anxious about money. And consistent exposure to other people’s gorgeous homes and extravagant vacations on social media has only intensified it, making me wonder what I must be doing wrong that I don’t have the same luxuries.
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Somewhere along the way, social media became my financial measuring stick, and this is a problem plaguing countless others, too. Apparently, this financial anxiety has become so commonplace that the internet’s given life to the term “money dysmorphia.” Of course, it’s always nice to know you’re not alone in your financial fears. Yet, I think we can all agree that feeling financially stable and confident is the better alternative. So, determined to get back to this point, I sought to learn more about money dysmorphia, how it affects us, and what to do about it. Ahead, everything you need to know if you’re feeling it, too.
Courtney Alev
Courtney Alev is an Associate Director of Product Management at Credit Karma, in addition to serving as Credit Karma’s Consumer Financial Advocate. In her role, Courtney is responsible for building Credit Karma’s next generation of product features focused on helping members know, grow, and protect their wealth.
What is money dysmorphia?
Similar to how people with body dysmorphia have a distorted view of their appearance, individuals with money dysmorphia have a distorted view of their finances. Typically, this manifests in one of two ways. First, it creates financial insecurity in someone with a good income, savings, and little to no debt, leading them to hoard their money when they don’t have to. Or, it sparks an inferiority complex in someone who gets stressed out over money or makes less than the people around them. In this case, they throw caution to the wind and subsequently overspend. No matter how you spin it, money dysmorphia clouds our judgment. Subsequently, making smart money moves becomes practically impossible.
According to a Consumer Financial Advocate at Credit Karma, Courtney Alev, the concept of money dysmorphia emerged as more people began questioning how well they were doing financially after seeing what others portrayed online. The phenomenon doesn’t discriminate, either. Anyone can experience money dysmorphia regardless of how financially stable they are; however, it’s most prevalent among younger generations, with 43 percent of Gen Z and 41 percent of millennials reportedly experiencing it.
Why do people experience money dysmorphia?
Ultimately, comparison is the root source of money dysmorphia. Given this, it’s unsurprising that social media often sparks this experience. “When people post content on social media that implies a certain financial standing, others often compare it to their own situation and feel financially inadequate,” Alev said. After all, if you scroll through snapshots of luxury getaways, girls’ nights, and coffee dates long enough, you’ll inevitably question how well you’re doing. To pour salt in the wound, this feeling of inadequacy can then be intensified if you have expensive student loans or debt, are unemployed or earning less than people you know, or obsessively worry you’ll never be able to live the life you want.
“Nearly 40 percent of Gen Z have admitted to going into debt to keep up appearances on social media.”
This comparison is subtle rather than overt, though. The truth is, we’re constantly assessing how we measure up to others based on the clothes they wear, the car they drive, and the content they share. In fact, a recent Minds On Money report from Ally revealed that nearly 40 percent of Gen Z have admitted to going into debt to keep up appearances on social media. I might be a millennial, but this is something I’ve felt acutely, too. I’ve refrained from taking full-body pictures in my home because my baseboards are outdated, and I stopped showing off my kitchen because it’s tiny and in desperate need of a refresh. The cold, hard truth is that every move we make communicates something about our financial standing. In a world where an enviable social media profile is the ultimate status symbol, it’s only natural to want to portray yourself positively.
What to do if you’re experiencing money dysmorphia
If you’re struggling with money dysmorphia, it’s important to recognize you’re not alone. Money affects everyone differently, and experiencing highs and lows in your relationship with money is totally normal. However, if you’re struggling with comparison or a potentially distorted view of your finances, there are steps you can take to remedy this situation so you can find the financial freedom you deserve.
“If you scroll through snapshots of luxury getaways, girls’ nights, and coffee dates long enough, you’ll inevitably question how well you’re doing.”
First, Alev recommends getting a clear understanding of your finances without the influence of external factors. To do this, schedule a time to essentially audit all your bills against your income and bank accounts; this is really the only way to realistically determine what your financial situation looks like. From here, Alev suggests setting clear financial goals for yourself and a plan for achieving them. This way, whenever you start comparing your financial situation to someone else’s, you can revert back to your plan and remember that you’re choosing to make smart money moves for yourself.
With that said, reevaluating your relationship to social media or limiting your social media use altogether can be beneficial. I know how easy it is to fall into the comparison trap, no matter how confident I am in myself and my money situation. But by taking a step back and remembering that it’s impossible to accurately evaluate how wealthy someone is from their social media profile, I’ve felt a lot less stressed. What’s displayed there never tells a full story, and the last thing you want is to get so caught up in someone else’s that you refuse to write your own—financial or otherwise.
Arianna Reardon, Contributing Writer
Arianna is a freelance writer and journalist, and the self-proclaimed hot and dirty martini queen. At The Everygirl, Arianna uses her authenticity and relatability to empower, inspire, and motivate women everywhere. Whether she’s writing about sex and relationships, career and finance, beauty and fashion, wellness, or home and living, Arianna’s passion shines through in all her work.