Financial Therapy for Money Dysmorphia in California
Money Dysmorphia refers to an irrational fear about your financial situation.
What causes money dysmorphia in California?
Money dysmorphia is a new term being used among the financial community to describe individuals, mostly younger generations, who have a distorted perception of their financial status. It is not a diagnosis in the DSM-V. Many younger people have faced significant economic challenges, including the 2008 financial crisis, the COVID-19 pandemic, rising student debt, and high living costs. These events have created a heightened sense of financial anxiety and insecurity, contributing to money dysmorphia.
Money dysmorphia can be influenced by a variety of psychological, social, and cultural factors.
What is money dysmorphia in California?
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You may experience feeling highly stressed or anxious about money which can lead to an exaggerated sense of financial insecurity.
For example, you may save excessively yet still worry about your financial security or overspend while ignoring the reality of your financial distress.
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Individuals with low self-esteem may undervalue their financial worth and misjudge their financial health.
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Perfectionists may feel they are never doing well enough financially, regardless of their actual situation.
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Negative financial experiences in the past can skew one's perception of their current financial status.
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Constantly comparing oneself to others, especially on social media, can distort one's perception of their financial status.
The omnipresence of social media exacerbates feelings of inadequacy. Seeing peers and influencers showcase seemingly affluent lifestyles can distort one’s perception of their own financial reality. This constant comparison can lead individuals to feel they are financially behind, regardless of their actual financial status (21Ninety) (The Good Trade).
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Societal and cultural norms about wealth and success can pressure individuals to feel financially inadequate.
There are strong societal pressures to achieve financial success and stability. Cultural narratives that equate financial success with personal worth can lead individuals to have unrealistic expectations about wealth and happiness. This pressure is compounded by the visibility of wealth in the media and among peers (21Ninety).
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Lack of understanding of personal finance can lead to misjudgments about one's financial situation.
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Uncontrolled spending or poor financial habits can contribute to feelings of financial inadequacy.
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Imagining the worst-case financial scenario can lead to unnecessary financial worry.
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Seeing financial success or failure in absolute terms without recognizing the nuances.
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Economic downturns or instability can heighten financial insecurities.
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Media portrayal of wealth and success can create unrealistic expectations and contribute to distorted financial perceptions.m description
What is therapy for money dysmorphia in California?
Here are examples of clients who would benefit from financial therapy for money dysmorphia.
Carlos, San Francisco
Carlos is a 29 y/o employed male in a relationship who lives in San Francisco, a High Cost of Living area, and earns a high salary. He has been saving over the last 5 years for a down payment as Carlos seeks the American dream of buying a house to build wealth. However, due to rising house prices, unstable insurance access, and mortgage rates, he feels stressed, anxious, and financially inadequate.
Amrita, Los Angeles
Amrita is a 45 y/o solo mother with a small business who is part of California’s gig economy in Los Angeles. Her financial situation is unpredictable and she has no benefits. Her business allows for flexibility so she can be present with her child but she has constant financial fears and is not saving for the future. Additionally, she lives in an area with a lot of tech jobs. She is constantly comparing herself, feeling as if a “has not”.
Mandeep, San Diego
Mandeep is a 55 y/o successful female in San Diego who would love to consider retiring to something more purposeful but is being “told” by social media influencers, who portray lavish lifestyles and unrealistic living standards, that her nest egg is not enough to live a satisfactory life.
Koru Financial Therapy in California can help you overcome financial dysmorphia
Koru Financial Therapy can help clients build a healthier relationship with money, grounded in reality and informed by both financial knowledge and psychological insight. This comprehensive support can significantly alleviate the distorted perceptions and anxieties characteristic of money dysmorphia. Explore the Blog: Overcoming Money Dysmorphia in California.
Here are several ways financial therapy can help:
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Koru Financial Therapy supports you to understand the emotional triggers contributing to money dysmorphia, such as anxiety, low self-esteem, and perfectionism.
Koru Financial Therapy provides an expert safe and shameless space for you to process these emotions.
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Koru Financial Therapy helps you accept your financial anxiety and worries instead of trying to avoid or suppress them.
By recognizing these feelings as normal responses to financial stress, you can reduce the emotional impact of money dysmorphia.
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Koru Financial Therapy incorporates mindfulness techniques to help you become more aware of your financial thoughts and feelings without judgment.
This awareness allows for a clearer understanding of how these thoughts influence your financial behaviors and decisions.
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Koru Financial therapy incorporates Acceptance and Commitment Therapy (ACT) techniques to help you recognize that your thoughts about money (e.g., "I will never be financially secure") are not necessarily true or reflective of reality.
This cognitive defusion reduces the power of negative thoughts and helps clients see their financial situation more objectively.
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Koru Financial Therapy assists you to explore and clarify your core values related to money and life in general.
Understanding what truly matters to them (e.g., security, freedom, generosity) can guide your financial decisions and actions.
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Once your values are identified, Koru Financial Therapy helps you set financial goals that are in alignment with these values.
This ensures that financial decisions are meaningful and fulfilling, reducing the dissonance that contributes to money dysmorphia.
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Koru Financial Therapy helps clients work on rewriting their financial narrative in a way that emphasizes growth and resilience rather than failure and inadequacy.
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Koru Financial Therapy helps clients learn to focus on their current financial situation without getting lost in past regrets or future worries. This present-moment focus helps in making clear and practical financial decisions.
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Koru Financial Therapy helps you confront and deal with financial issues they might have been avoiding, such as checking bank statements, spending, paying taxes, or creating a budget.
Other therapy services at Koru Financial Therapy
ADHD and Money Financial Therapy
Learn the impact of ADHD on money management. Koru Financial Therapy in California provides a supportive and neuro-affirmative space to discuss money concerns.
Individual Financial Therapy
Learn how individual financial counseling in California with Koru Financial Therapy helps individuals gain confidence and control over their money.
Group Financial Therapy
Learn how Group Financial Therapy supports individuals using connection, support, coping skills, and expert guidance to reshape their relationship with money.
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