Money Dismorphia
The Star Paper talked about Money dysmorphia today – a non-clinical term describing a distorted perception of one’s financial situation. It can manifest as feeling financially insecure despite having substantial savings, or conversely, believing one has more money than one actually does.
A survey published in the United States by financial company Credit Karma last year revealed that nearly half of young adults report signs of money dysmorphia. Specifically, 43% of Gen Z and 41% of millennials admitted to struggling with financial comparisons.
The term refers to a distorted perception of one’s financial status. The key word is ‘distorted’ here. Being worried about retirement or saving for emergencies – that’s not money dysmorphia. That’s just being financially responsible.
“Money dysmorphia is when you feel like you should already be a millionaire at 18, even though your income is typical for someone just starting out in life. Your perception of financial ‘normal’ becomes skewed.” As a result, one lacked financial mastery to work towards financial freedom.
“A large portion of Gen Z includes those born between 1997 and 2012 generation still lives with their parents and is financially dependent. Many are in tertiary education, juggling part-time or freelance work. Only a small segment might have a stable career. And even then, likely with fewer than five years in the workforce.
He points to patterns among Gen Z, both in the US and Malaysia: career instability, frequent job-hopping and resistance to traditional workplace structures that requires showing up and work and learning the hard way as part of step by step growth.
“Sometimes it’s framed as a desire for better work-life balance or meaningful work, but it also reflects a lack of long-term financial security or commitment. As a result they will feel insecure
He says in Malaysia, cultural expectations add pressure, usually seen through a strong sense of familial obligation such as supporting parents financially, giving allowances, or contributing to household expenses, even at the start of one’s career.
“Combine that with social pressure to ‘look successful’, such as owning a car, buying a house, having the latest phone, or throwing extravagant weddings, even those doing well on paper may feel like they’re falling behind.”
Many still don’t realise and accept the fact is that money can be grown, and simply stashing it away won’t unlock its potential. While saving is good, your money won’t grow that way.
“When you get your first job, the advice is still the same; save and save. It creates a fear of spending a bit more for something worthwhile, like investments.”
“Many people don’t understand the difference between saving and investing. Even if you’re earning more than you think, your perception of financial stability remains skewed. You’ll always be afraid even when you have enough.”
Source: The Star
Imagine
1. You are now able to be able to attain financial mastery.
2. You know what are the steps to financial freedom
3. You know must come first and what is next
4. You know what are your options
Come and attend our financial mastery workshop and equip yourself with the 4 steps to financial freedom.
Visit: www.intune.my/financialfreedom
How InTune Outsourcing Can Support SME Business Owners?
InTune Outsourcing is one of the Malaysia’s Most Advanced and Top Outsourced Accounting, Finance, HR and Payroll services providers.
We have served more than 400 clients todate and InTune offer full-range services from start up to small to medium-sized companies.
InTune takes away the stress and pains from managing Accounting, Finance, Payroll and HR, including Bookkeeping, Payment Services, Accounts Payable, Accounts Receivable, Payroll and more, by providing an expert team of CPAs and other accounting professionals who understand the special accounting needs of growing businesses.