Money Dysmorphia and its Aftermath

 “The influence of social media is astonishing. It's disheartening to see the false life that some people live.”

Social media is a widely used term for internet sites and applications that we use daily to share the content we create. No single morning starts without scrolling through the feeds of Instagram, WhatsApp, or Facebook. Such is the influence it has on each one of us. Social media has been a great boon, helping many of us explore our creativity, connect with old friends, keep entertained, and learn a lot of new things. Social media, therefore, is a big part of all our lives.

While it is understandable that social media is of great help, the cons also need to be addressed. The more one delves into the depths of social media—seeing updates on the food someone ate, the places they visited, the physical appearance of an influencer, or the lifestyle of an actor or actress—everything one sees leads to self-comparison and self-doubt. The idealization of life as seen on social media creates a sense of inadequacy and anxiety, particularly among the current generation, the millennials and Gen Z.

We are living in a society where our actions are constantly observed. Every place we visit, every meal we have, and every moment we spend with our loved ones is posted on social media to remain active and visible to the world. However, we are also victims of comparisons. Instead of enjoying the quality time spent with our loved ones or appreciating the places we visit, we constantly compare ourselves and our achievements to those of social media influencers.

Today's generation is more free, self-reliant, and independent compared to their parents. They hold their own views on every aspect of their lives, from marriage and education to job, career, and finance. However, they are often more cash-strapped than their parents. By the middle of the month, many find themselves financially strained, not because they aren't earning, but because they are spending beyond their means. The overuse of credit cards to cover expenses, the urge to spend on extravagance, and the constant desire to stay in the limelight or emulate the lifestyles of social media influencers are the primary reasons for this.

Money Dysmorphia, though not an actual diagnosis, has been circulating around the internet for some time. Money Dysmorphia refers to a state of mind where a person feels irrationally insecure about their finances, even when they are financially stable. According to Lindsay Bryan-Podvin, a certified Financial Therapist, “Money Dysmorphia is the distance between a person’s perceived financial status and their actual financial reality.” This distorted view of one’s finances often leads millennials and Gen Z to make ill-informed and dangerous decisions. A recent study reveals that nearly half of Millennials and Gen Z are affected by this condition.

The study sheds light on the extent to which young people are fixated on the lifestyles of the influencers they follow on social media platforms and how they feel compelled to project an image of wealth, often beyond their means. The pressure to uphold this social status is, however, creating serious mental health issues, affecting not only individuals but society as a whole. With the advent of social media, we are more aware than ever of others' spending habits.

The concept of Money Dysmorphia can be classified into 3 categories, namely Earning Obsession, Money Hoarding and Adverse Shopping

1.      The group of people who though are wealthy have the constant urge to earn more as they feel they are poor is called as Earning Obsession.

2.      The loath type who has money but will not spend, is called Money Hoarding.

3.      Adverse Shopping is where despite your financial constraints, you’re compelled to buy expensive and unaffordable items.

While the first and second category may seem harmless, the consequences of the third category are not limited to the individual affected by the disorder. The impacts are far-reaching. Constantly feeling the urge to match the financial status of someone you have no real relationship with, just because you saw it on social media, can lead to the adoption of a violent and criminal mind-set.

One of the most adverse effects of Money Dysmorphia is Money Mules. A Money mule is someone who transfers or moves illegally acquired money on behalf of someone else. Innocent victims are duped by fraudsters into laundering illegal money via their bank accounts, thereby making it complicated to determine the source. Recent studies show that the targets of money mules are mostly youngsters (Millennials or Gen Z) who are more vulnerable, naïve and strapped for cash, compared to their elder generation, due to the extravagant lifestyle they are trying to imitate. The charm of an opulent lifestyle preserved on platforms like Instagram has played a crucial role in shaping the financial aspirations of the younger generation. Being attracted to the financial gains or rewards offered by the fraudsters many are getting boarded into such illegal activities. A chunk of the accounts operating for carrying out money mule activities are found to be opened in the name of college/ school students who are eager to earn money through short-cuts and are interested in living a lifestyle way above their financial stability. Unaware of the implications and repercussions of their involvement they are making themselves the prey of such fraudsters. Of late, cases of heinous crimes such as drug trafficking, smuggling, kidnapping and murder are also seen followed by youngsters who are ready to do all means to ensure the maintenance of their social status indicating the seriousness of the disorder among the public.

Overcoming money dysmorphia is not an easy task, but it is also not insurmountable. By taking proper measures, such as monitoring one's finances, setting realistic goals, and creating a practical financial plan, individuals can overcome this disorder. Recognizing the problem is the first step to managing it. By doing so, individuals can pinpoint what leads to their disordered relationship with money. Fear and misconceptions can be reduced by educating young people about financial matters. Creating a monthly budget can help manage money dysmorphia by providing a clear overview of income and expenses. Most importantly, reducing screen time and controlling social media presence can decrease the urge to overspend, as the fixation on the lifestyle of others on social media is a primary cause of money dysmorphia.

A new concept called "loud budgeting" has been introduced by TikToker, comedian, and writer Mr. Lukas Battle. Although initially presented as a joke in one of his TikTok videos, it has sparked a new financial trend. Loud budgeting encourages individuals to be vocal and proud about achieving their financial goals. It stands for being unapologetic about personal finances, taking a proactive and transparent approach to managing money. In a workplace setting, loud budgeting involves collaborating as a group to develop financial goals and a shared spending plan, seeking and providing input on financial decisions, and openly sharing financial information. It can have a positive impact on the financial transparency of an organisation.

Money Dysmorphia can be overcome through collective efforts. Let us ensure that the future generation is not trapped in debts or become pawns in the hands of fraudsters.