What is “financial dysmorphia”, the phenomenon you get to believe you are poorer than you are in reality
More and more people with high incomes feel “Poor”although they gain amounts that place them in the top of the best paid – a phenomenon known as financial dysmorphic.
More and more people have the impression that they have a more precarious financial situation than the real photo archive
Nine out of ten employees earning over 100,000 pounds (approx. 117,000 euros) annually is not considered “rich” – although this threshold places them directly in the top 4% of the UK. In fact, the 1,000 interviewed employees said they should win, on average, 724,000 pounds (approx. 847,000 euros) a year to feel really rich, according to The Independent.
Age also influences the perception of financial safety: young people think they need more money to feel “wealthy”. Those between 18 and 24 years old said they would have 343,000 pounds per year, compared to 324,000 for those between 25-34 years and only 135,000 for those between 35-46.
A poll conducted by New Statesman in 2024 showed that 60% of the British earning 80,000 and 100,000 pounds think they have an income “Environment”. Those with high incomes tend to see themselves as “normal” on the revenue scale and even “Worse than others” from their social circle.
Expert explanation
According to specialists, an important factor is childhood financial safety. If someone grew up in a family where money was always a problem, it is more likely to live with fear that it can lose everything.
“The values that form our attitude towards money are set since we are small”says Dr. Christine Hargrove, financial therapist, confirms that financial instability in childhood “It can have long -term effects.” “Our mind is set to protect us. Even if we live safely, emotions do not always understand that things have changed.”
There is also the tendency to spend more as we earn more. Things that were before considered a luxury become sudden “Needs”influenced by what they consider “normal” Our social circle. This is why a huge revenue couple can say that “it takes it hard” if the taxes increase to the second property or if the taxes for the private school are increased – which has become “Essential” instead of a moft.
“The research in this regard is fascinating,” says Hargrove. “People underestimate two major categories of expenses: rare (but big) and small (but frequent)”. In the first category, give the example of a luxury car: “How many do you take into account the high repair costs when buying an expensive car? Most do not realize that they do not compare with an ordinary car.” To the second, small expenses are ignored: “The monthly subscriptions, the applications, the small daily payments gather quickly.”
Phenomenon amplified by social networks
Comparison with what is considered “normal” is no longer limited to friends or colleagues. Now we compare ourselves with hundreds of thousands of people on the Internet. “Financial dysmorphia is the modern version of the syndrome” not to be more than the neighbors “”says Courtney Alev, Financial Lawyer on Credit Karma.
“Social networks amplify this distortion between perception and reality.”
One study showed that almost 25% of Americans felt less financially satisfied with social media. Bombarded with pictures of a luxurious and aspirational lifestyle, we cannot avoid comparisons – and the feeling that we lead a life “Modest” in comparison.
It is worth noting that the perception of “luxury” has changed radically. For the Baby Boomers generation, things like coffee, the room subscription or new clothes were considered extravagance. However, they expected to be able to buy a house for up to 35 years-an increasingly difficult to reach the new generations, The Independent notes.
In November last year, the average price of a house in the UK was 290,000 pounds – ie 10 times the average salary for those between 22 and 29 years. 35 years ago, a house costs about 5 times the average salary.
