Seeing people’s opulence on social media can lead to money dismorphia, warns expert

Is scrolling through social media and seeing people’s vacation posts or luxurious lifestyles making you feel financially insecure?

However, in reality you’re just fine. You could be suffering from money dysmorphia. 

“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,” says Satrix head of brand, René Basson.

“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.

“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.

“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 such as investing.”

Basson says money stress is completely normal, especially given the rising cost of living. “If you find yourself in patterns of thinking that harm your financial wellness and confidence, it’s time to make a change.”

Here’s how you can shift 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 timeframes into account. This’ll 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 really important to you. Are your values aligning with your spending, saving and investing behaviours? Introspection about 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 forwards. Dealing with debt? Consider a credit coach. Need a plan? Talk to a trusted intermediary.
• Keep investing: Benefiting 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.

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