Have you ever felt like your financial reality doesn’t match the way you think about it?
Maybe you’re constantly worried about money, even though your savings are healthy. Or perhaps you’re spending recklessly, ignoring the warning signs of mounting debt.
This disconnect between your actual financial situation and how you view it is known as money dysmorphia, a term that highlights the emotional and psychological struggles many people face when it comes to money.
While not officially recognized as a clinical condition, money dysmorphia reflects real challenges that can take a toll on your mental and physical health. From feelings of guilt and shame to the pressure of societal expectations, this phenomenon can deeply impact the way you make financial decisions and live your life.
In this article, we’ll explore what money dysmorphia is, why it happens, and how you can work to overcome it.
Whether you’re dealing with overspending, hoarding, or constant financial anxiety, there are actionable steps to help you regain control and find peace with your money. Let’s break down this complex issue and learn how to move toward a healthier financial mindset.
What is the definition of money dysmorphia?
In a nutshell, money dysmorphia is when there’s a big gap between someone’s perceived financial situation and their ACTUAL financial situation. These are people who have a distorted view of their financial world.
On the one end of the spectrum, this could be someone who spends and spends and spends, not recognizing that they are actually in a pretty precarious financial position.
On the other hand, this could be someone who constantly worries about not having enough money, and may have a really hard time spending at all, even if they have a healthy nest egg and are in a good place with their money.
Do I have money dysmorphia?
Money/financial dysmorphia is not a psychological disorder that you can be diagnosed with. But if you engage in compulsive financial decisions, it could be something to look into. Such compulsive behaviors include:
- Hoarding
- Overspending
- Extreme debt
- Chronic guilt or shame
What causes money dysmorphia?
Causal factors that lead to money dysmorphia may include:
- Psychological factors, including genetic predispositions
- Social factors, as your mental state is influenced by those close to you
- Cultural factors, as your financial state is judged by prevalent cultural standards
Some financial and data experts cite past experiences. These can include childhood experiences such as poverty or bullying related to finances.
Having experienced financial instability in the past may be a cause of financial dysmorphia in the future.
However, cultural factors are a highly subjective area of focus that is even less well understood. For example, some experts in other fields have pointed out that societal messaging about money and material success can cause many to experience stress.
There is a huge emotional aspect to money: how we see it, how we use it and how we value it. Especially with Millennials and Gen Z, unrealistic expectations for where they SHOULD be or what they SHOULD have plays in to money dysmorphia.
You admire someone on social media who has an insane house, beautiful clothes and a sweet sports car, and you think you should have that as well. Suddenly, you’re concerned that you need to be making a $200,000 salary and you feel behind, even though you may have a decent amount in your savings and investments. This can start to become an obsession if it’s not curbed.
Regardless of the cause(s), money dysphoria can wreak havoc on people’s lives.
How do you overcome money dysmorphia?
Ultimately, psychological support, a proactive and positive approach to finance and challenging your emotional attachments to money can help you fight back.
Psychological support.
As with clinical classifications of dysmorphia, it’s possible that cognitive behavioral therapy can help. But where outside help is out of reach, there are aspects of personal wellness and financial planning that can be achieved alone.
However, reaching out to organizations such as the Financial Counseling Association of America may provide you with free financial counseling.
Educate yourself.
Educating yourself about personal finance and making realistic, small goals can also help. Learning about budget ratios, for example – you can work on understanding how to confidently save enough money every month to meet your long-term goals, but also keep a percentage you decide you’re comfortable with spending how you like.
Challenging your emotional attachments.
Everyone has a story about WHY they feel the way they do about money.
There are likely tells, or negative thoughts that pop up when you think about it. Maybe you grew up without financial security and were constantly worried about not having enough, so now every time you want to buy yourself something you don’t ‘need,’ you may feel guilty, or have a little voice in your head saying, ‘you’re being wasteful, that could have bought a cart full of food.’
While it’s good to be mindful of where your money goes – this line of thinking can really twist you up. The next time you find yourself hearing those negative comments – challenge them.
- Where do they come from?
- Why do you still feel that way?
- What is enough?
- Is there a point where you would feel comfortable?
Financial Values: Shaping Your Life Around Your Dreams – Part 1
Conclusions: What to do About Money Dysmorphia
Money dysmorphia may not be a recognized psychological condition.
But it candidly describes an issue that many people are reporting. Unrealistic expectations, social media, past trauma or financial insecurity – these factors can all play into having a distorted view on how your money really lines up in your life.
Reaching out for help, educating yourself on personal finance and challenging your emotional attachments to money can all help you overcome these strong feelings around money.
Lastly, remember to be kind to yourself as you work through this process. Money is intrinsically tied to deeply personal beliefs and values, and it’s shockingly still not something we are properly educated about as we grow up. Luckily, there are a lot of resources, and even others who are going through the same thing who can help.
Photo By: Kaboompics.com
