Are you always worried about money, even though you have a healthy amount of savings? Do you struggle to spend and constantly compare your financial situation to others? Or maybe you love to spend money, even though you have nothing in the bank. You live a lifestyle you can’t afford, buying luxury items and going on expensive trips because you feel financially secure. All of these examples are symptoms of money dysmorphia.
Money dysmorphia is the gap between how you perceive your finances and the reality of your situation. While financial dysmorphia can impact anyone, it’s most prevalent among Gen Z’s and millennials.
If you think you might suffer from money dysmorphia, or know someone else who is struggling, keep reading for details on what money is, how it can affect you, and what you can do to overcome it.
What is Money Dysmorphia?
Even if you’ve never heard of money dysmorphia, you may be familiar with body dysmorphia. This is a mental disorder that causes a person to focus on a perceived flaw in their appearance, one that isn’t visible to others. With body dysmorphia, there’s a difference between what one perceives, and the reality of the situation.
Money dysphoria parallels this concept but is not an actual diagnosis. It’s when your perceived financial situation varies from your actual situation. For instance, you might have a ton of money in the bank, investments, assets, and an emergency fund, but still feel like you don’t have enough. Alternatively, you might continuously overspend and choose to ignore the reality of your poor financial situation.
To put it simply, money dysmorphia is a distorted view of your finances.
What Causes Money Dysmorphia?
There are several possible causes of money dysmorphia. For instance, if you grew up with a lot of financial instability and constant worry about money, you might develop a scarcity mindset. This mindset can follow you into adulthood, and no matter how much money you have, you might never feel like you have enough.
Social comparison through social media can also lead to a warped view of money. Having 24/7 access to curated highlight reels of people’s lives from around the world can make it almost impossible to compare. It starts to feel like everyone else is enjoying tropical vacations, expensive dinners, and designer clothes. How can they afford it? If they’re doing it, should you be doing it too?
How to Identify Money Dysmorphia
Curious if you have money dysmorphia, or how you might identify if someone close to you has it? Signs and symptoms of money dysmorphia can include:
- Feelings of financial anxiety and stress
- Feelings of shame and low self-worth
- Excessive saving
- Overspending
- Avoiding financial responsibilities
- Constant comparison with others
Impact of Money Dysmorphia
Since money is so central to our everyday lives, financial dysmorphia can have far-reaching impacts. Whether your finances are in disarray but you spend like you’re wealthy, or you feel like you don’t have money, even though you do have savings, money dysmorphia can impact your wellbeing. You may feel:
- Social isolation. If you’re not willing to spend money on social outings, this can lead to loneliness and social isolation.
- Relationship issues. Strong feelings about hoarding or spending money can lead to arguments between couples.
- Increasing debt. If you spend beyond your means, it’s easy to rack up debt. Debt can prevent you from meeting your financial goals and can result in the need for formal debt solutions like Bankruptcy or a Consumer Proposal.
- Mental health issues. Constant worry and stress about money can lead to mental health issues, including depression and anxiety.
Tips to Manage Money Dysmorphia
If you have a complicated relationship with your money, there are things you can do to take control of your finances. Here are some ways to manage money dysmorphia:
- Know where you stand. The first step is to face reality. Review your bank and credit card statements and debts. Get an accurate account of your financial situation instead of guessing where you stand.
- Determine your values. Have you ever stopped to think about how you want to spend your money? What are the things you value? Experiences, good food, travel? Moving forward, start to focus your financial resources on the things you value most.
- Make a budget. Putting your income and expenses on paper, in a spreadsheet, or on an app, makes you come face to face with the reality of your spending. By monitoring how much money you have, you can see more clearly if you have the funds available to spend, if you should slow down, or if you need to start making cuts to your discretionary spending.
- Take a break from social media. This can help you to stop comparing yourself to others and give you an opportunity to get a better Unfollow social media accounts that make you feel bad about yourself and encourage you to buy things.
- Pause before you make a purchase. If you’re a compulsive overspender, try using a pause before purchase strategy. For instance, if you’re online shopping, leave the item in your cart for 24 hours before buying it. Putting time between your impulse to purchase and your decision to buy can help you make clearer choices.
- Increase your financial literacy. Knowledge is power. A better understanding of your money can make it easier to manage.
- Speak to a professional. If you need help learning how to manage your money, or you’re in a large amount of debt and need advice on what to do next, speak to a Licensed Insolvency Trustee (LIT). Trustees are debt professionals who offer the widest range of debt help solutions, from credit counselling to Consumer Proposals and Bankruptcy.
Need Help With Debt? Speak to a Licensed Insolvency Trustee
If you’re struggling with debt, a LIT can assess your financial situation and help you come up with a plan to get back on track. For a free, no-obligation consultation, call us at 1-888-371-8900 or reach us online. You don’t have to face financial challenges alone, we’re here to help.
