Money Dysmorphia...huh?
Could you be suffering from this condition?
Here’s what to expect in this newsletter!
📰 Interesting financial news: Stay up to date on what’s happening in the economy.
📈 What’s popping in the stock market: The 411 on trending/interesting stock market news.
📝 This week’s main topic: What this newsletter’s title is about!
🥰 Team CGF’s Amazon favs: Affordable yet helpful Amazon finds.
📰 Interesting financial news
Are you taking advantage of your 401k match? The average 401k match in 2023. (USAToday)
FAFSA is still having major issues and delaying financial aid decisions—how students and families can cope. (CNBC)
📈 What’s popping in the stock market
Levi's stock jumped 20% on April 4th, boosted by Beyoncé song called “Levii’s Jeans” featuring Post Malone.(Ticker Symbol: LEVI)
Cinemark Stock Jumped 6%. Analysts upgrade stock rating. ‘“Movies Are Back!” (Ticker Symbol: CNK)
📝 Main topic: Money Dysmorphia...huh?
Have you heard of Money Dysmorphia? It’s a somewhat new term that describes having a distorted view of your finances.
Money dysmorphia is essentially when someone lacks a clear understanding of their financial situation. For instance, you might be financially stable but feel as if you don’t earn enough.
Could this be you? Keep reading to learn more and discover ways to support yourself!
More on money dysmorphia
Having a strong sense of one’s finances isn’t always common. In fact, a report by Credit Karma shows that 59% of millennials and 48% of Gen Z feel behind in their finances.
Even those who have above-average savings suffer from money insecurity. Why, you may ask? One factor is the obsession with becoming rich.
But that’s not all.
Economic instability has greatly impacted people’s perceptions of money. After the global pandemic, when millions of people lost their jobs, many people never got over the feeling that, at any moment, they could become financially unstable.
Even though the pandemic is over, wars and inflation are still affecting the economy, and the world can sometimes feel very unstable.
Yet despite worldly events, one of the hardest-hitting factors of money dysmorphia is social media and the comparison game that comes with it.
Not surprising, right? While I pride myself on having a curated social media feed filled with inspiring videos, every now and then, I’ll come across a video of someone living a ridiculously lavish lifestyle. You know those videos of people restocking their guest bathrooms with an abundance of lush cosmetics. There are videos of influencers doing endless shopping hauls or some 18-year-old bragging about how they make $100,000 a year.
Even if you try not to play the comparison game, it’s hard not to feel like you're behind.
So whether you have full-blown dysphoria or you’re trying to keep up with the “ digital Jones,” here are some things you can do to be confident with your financial situation. Because chances are you’re doing better than you think.
7 Steps to becoming more confident with your finances
Being financially confident and stable doesn’t equal being rich. While obtaining wealth is a great financial goal, living a more modest lifestyle is perfectly okay; One where you can meet all your needs, take a vacation every now and then, have comfortable savings, and aren’t obsessed with chasing money.
Here are some ways to start feeling good about your money.
1. Be aware of your scarcity mindset
A scarcity mindset is when you see the world as a place where there’s never enough to go around. It’s feeling like you’re always running low on everything, especially money. You might catch yourself thinking, “I never have enough time”, or “I never have enough money.“
A scarcity mindset can also show up as:
constantly stressing about money
unable to be genuinely happy for others
constantly comparing yourself
overcompensating
seeing the world as the glass is half-empty
If you’re nodding your head, saying, yep, that’s me, it’s time to start shifting to an abundant mindset. Start by focusing on your thoughts and shifting your negative thoughts to positive ones.
Consider certain practices like creating a gratitude list, volunteering, and using positive financial affirmations.
2. Limit your social media consumption
We’re all guilty of spending way too much time on social media. However, this bad habit can slowly eat away at your self-confidence.
So instead of unconsciously scrolling through social media, put barriers in place to help you limit your access. For instance, you can try doing a social media detox.
You can also download an app or change the settings on your phone to limit your social media use to a set amount of time per day.
Most importantly, don’t scroll when you’re feeling down. Look for healthier, off-screen ways to boost your mood.
3. Focus on the realistic amount of money that will give you the life you desire
Let’s be honest. You may not be living paycheck to paycheck, but perhaps you’re not living how you want. While having a gigantic wardrobe filled with outfits and purses seems like the dream life on social media, your desires probably look a little different.
Consider what lifestyle you want and what will make you happy. Then, determine how much money you need to make that dream a reality. You may want a life where you can travel more, become a homeowner, or experience fine dining.
When you become realistic about the life you want and the money you need, you’ll quickly see that you don’t need a million dollars to be happy. However, with a realistic number, you can start creating a financial plan to help you achieve your goals.
4. Make a financial plan for yourself
You might be experiencing money dysphoria because of how you’re managing your money. Even with a hefty salary, you can live paycheck to paycheck if you don't manage your money well. This is where a financial plan comes in handy.
A financial plan is a structured approach to reaching your financial goals. It details your current money situation and financial system, including investing, saving for retirement, debt payments, etc.
Making a solid plan also consists of setting financial goals, creating and sticking to a budget, creating an emergency fund, investing your money, spending mindfully and intentionally, and planning for retirement and taxes.
5. Become financially literate
Financial literacy is one of the cornerstones of obtaining money and maintaining the wealth you earn. It involves knowing how credit cards work, how to invest, and the difference between being rich and being wealthy.
6. Seek professional help
Because of the shame often associated with money, particularly women and money, asking for help can seem uncomfortable. However, getting professional help from a financial coach or financial advisor can help you put things into perspective.
7. Remember to enjoy life and not focus all your attention on money
At the end of the day, money is just a tool. Although essential, it’s simply a means to an end. The things that make life meaningful and memorable don’t have a price tag.
Whenever I feel like I’m focusing too much on money, I remember something I heard from author, speaker, and professor Brene Brown. She spoke about people who have lost loved ones, and what they miss most are the ordinary moments, such as the sound of someone’s voice, companionship, spending time together, etc. While new gadgets and toys can temporarily make us feel good, treasured memories bring us joy and make life worth living.
Remember, if you’re experiencing money dysmorphia or financial anxiety, one of the greatest sources of relief is education. Check out some of our completely free courses to build your financial understanding and confidence.
🥰 Team CGF’s Amazon Favs
In this section of the newsletter today, we’re focusing on self-care by highlighting some affordable items you can purchase to better care for yourself.
Note: This list contains affiliate links from Amazon. Clever Girl Finance is an Amazon Associate which means we may earn commissions from qualifying purchases. These commissions help us grow!
NanoSteamer Large 3-in-1 Nano Ionic Facial Steamer with Precise Temp Control
Nothing says luxury, like being able to give yourself a facial at home. This facial steamer is the perfect self-care item on a budget. If you can, use this as a reward for getting through your week. Or use it for a self-care Sunday.
Relaxing Spa Gift Basket Set
A spa day would be great; however, when you don't have the time or the budget to go to one, you can bring the spa to you with this gift basket. While spa kits make great gifts, no one says you can’t gift one to yourself.
HLS Aroma Diffusers for Essential Oils
There’s nothing like walking into the room and smelling your favorite scents. Scents can have a calming effect, whether it be the aroma of peppermint, lavender, or citrus. This oil diffuser is one simple way to make your space feel relaxing and inviting.
MESMOS Daily Mindfulness Affirmation Quotes
Sometimes, we all need little reminders to stay positive. Luckily, you can get this mindfulness calendar, which gives you 365 quotes to help you stay positive and remind you to take care of yourself.
How will you take care of yourself this week?