Financial Dysmorphia: Feeling like you’re Broke Even If You’re Not

Have you ever looked at your bank account, seen a stable balance, yet still felt like you’re barely making ends meet?
This feeling is known as financial dysmorphia, a psychological phenomenon where individuals perceive themselves as financially struggling, even when they are in a stable or above-average financial position.
Financial dysmorphia is becoming increasingly common, especially among millennials and Gen Z, who face constant comparisons on social media and rising economic pressures.
But why does this happen, and how can you overcome it?

• You always feel like you don’t have enough money – Even with a decent income, you feel broke.
• You compare yourself to wealthier peers – Social media makes it seem like everyone else is doing better.
• You avoid checking your bank statements – The fear of not having enough money keeps you from facing reality.
• You hesitate to spend on essentials or experiences – Even when you can afford it, guilt stops you.
• You underplay your financial success – You dismiss your achievements, feeling like it’s never enough.

1. Lifestyle Inflation: As income increases, so do expenses. The more you earn, the more you spend on better housing, dining, and travel. This creates the illusion that you’re still struggling, even if your financial position has improved.
2. Comparison of Social Media: Browse Instagram or LinkedIn is easy to feel that you are falling back. Luxury holidays or promotion can distort your perception of financial stability by looking at others.
3. Economic Anxiety and Uncertainty: Increased inflation, student loans and unexpected job markets feel delicate in financial security, even if you are currently recovering.
4. Scarcity Mindset: Some people grow up with financial conflicts, and even after improving their position, they still feel financially insecure. This psychological impression can make it difficult to feel financially “safe”.

1. Track Your Financial Progress: Keep a budget and review your financial growth over time. Seeing your savings and investments increase can help shift your mindset.
2. Set Realistic Financial Goals: Instead of comparing yourself to social media, focus on personal financial milestones, like saving for a home, investing, or paying off debt.
3. Practice Gratitude for What You Have: Shift your focus from what you lack to what you’ve achieved. Celebrate financial wins, no matter how small.
4. Limit Social Media Exposure: Curate your social media feed to follow financial educators rather than influencers flaunting luxury lifestyles.
5. Seek Financial Education or Therapy: Understanding money psychology can help you break free from false perceptions. Financial advisors or therapists can guide you towards a healthier relationship with money.
   “The goal isn’t more money. The goal is living life on your terms.” – Chris Brogan

Financial dysmorphia is real, but it doesn’t have to control your mindset. By tracking your financial reality, setting personal goals, and avoiding toxic comparisons, you can regain confidence in your financial journey.
Remember: You are doing better than you think!