What Is Money Dysmorphia?

Money dysmorphia is what happens when your brain plays financial tricks on you. It’s when you either convince yourself you’re broke when you’re actually doing fine, or you think you’re living large when, in reality, you’re drowning in debt. And thanks to social media, this warped financial perception is becoming the new normal.

Once upon a time, people compared themselves to their neighbours. Now, we’re stacking ourselves up against influencers with rented supercars, people photoshopping their success, and entrepreneurs making six figures a month (if you believe their LinkedIn posts). Money dysmorphia isn’t just about financial stress, it’s about how we see ourselves in relation to others, and the insane standards we hold ourselves to because of it.

The Two Sides of Money Dysmorphia

Money dysmorphia has two extremes: perceived poverty and perceived wealth. Both are completely detached from reality and make people act in ways that hurt them in the long run.

Perceived Poverty: Feeling Broke When You’re Not

Ever met someone who earns decent money, has savings, but is constantly in ‘I’m skint’ mode? That’s perceived poverty. No matter how much they make, it never feels like enough. And let’s be honest, social media makes this worse. When your feed is full of influencers casually dropping “I just made £100k in my sleep” posts, your comfortable but normal income suddenly feels like a joke.

Why Does This Happen?

1. Social Media Distortion – You’re seeing the highlight reels of people who are (allegedly) killing it financially. Your steady progress feels slow in comparison.

2. Aspirational Marketing on Steroids – Brands don’t just sell products anymore; they sell entire lifestyles that make you feel behind.

3. Rising Living Costs – It’s not just perception - things are getting more expensive, and salaries aren’t keeping up.

4. Generational Pressure – You’re ‘supposed’ to own a home, have investments, and retire early, because that’s what successful people do… right?

This side of money dysmorphia leads to people constantly stressing over money, even when they’re financially stable. They avoid spending, feel guilty for enjoying their earnings, and never feel like they’re ‘doing enough.’

Perceived Wealth: The Fake Rich Phenomenon

Then you’ve got the other side, the people who believe they’re richer than they are, living as if they’re rolling in cash when they’re actually funding their lifestyle with credit and denial. They’ve got designer clothes, drive a flashy car, and talk about investments, but their bank balance tells a different story.

What’s Driving This?

1. The Illusion of Success – Influencer culture has convinced people that looking rich is more important than actually being rich.

2. Easy Credit – Why wait until you can afford something when you can just finance it?

3. “Think Rich” Nonsense – The toxic ‘manifestation’ culture that tells people if they act wealthy, the money will follow. (Spoiler: It won’t.)

4. Entrepreneurial Hustle Culture – Everyone’s convinced they’re one course away from becoming a millionaire.

These are the people maxing out credit cards for business class flights to “network” in Dubai, all while secretly panicking over their next payment.

The Real Damage of Money Dysmorphia

Neither of these extremes is healthy. If you constantly feel broke when you’re not, you’ll never enjoy your financial progress. If you think you’re rich when you’re not, you’ll end up in serious financial trouble. Businesses suffer too - some entrepreneurs feel like failures because they aren’t scaling fast enough, while others spend recklessly to maintain a façade of success.

How to Break Free from Money Dysmorphia

1. Redefine What Success Actually Means – If you’re financially stable, can cover your bills, and live comfortably, you’re already doing better than most.

2. Get a Reality Check – Regularly look at your actual financials instead of relying on ‘vibes.’ Numbers don’t lie.

3. Unfollow the Fake Gurus – If certain accounts make you feel inadequate, ditch them. Most of them are selling you a dream they haven’t achieved themselves.

4. Spend Based on Your Reality, Not Social Media’s – Do you actually need that thing, or do you just want to flex on Instagram?

5. Get Professional Advice – If money stress is taking over your life, a financial planner or therapist can help put things in perspective.

Money dysmorphia is warping people’s perception of financial reality. Whether you feel like you’re broke when you’re not or act rich when you’re struggling, it’s time to step back, reassess, and stop letting social media dictate your self-worth. Real financial success isn’t about looking the part - it’s about actually having stability, control, and freedom over your money.