Money dysmorphia is a condition that can lead people to feel anxious, guilty, and stressed. Now, a money expert has explained the ways to recognise and overcome it.
Have you ever caught yourself scrolling endlessly through Instagram late at night, envying the extravagant lifestyles your followers showcase on social media? You’re certainly not alone.
The urge to “keep up with the Joneses” can trigger money dysmorphia – where our understanding of financial reality becomes warped, leading to overwhelming feelings of anxiety, guilt, and stress around spending and saving.
Matthew Parden, CEO of money management app Marygold & Co, explains precisely what money dysmorphia involves, the elements that contribute to it, and practical approaches to help tackle and conquer it.
What exactly is ‘money dysmorphia’?
Parden explains: “Money dysmorphia is effectively when the distorted perception of one’s financial health, how you feel about your money, doesn’t necessarily reflect the reality. This can be emotionally driven, shaped by irregular patterns or social pressures to keep up.”
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Money dysmorphia can trigger both overspending and excessive saving, depending on how the individual perceives their situation.
“We’ve worked with anxious savers, avoidant savers and people who like to spend, so there’s lots of different types of personality and money dysmorphia can manifest in all of them,” shares Parden.
Warning signs of money dysmorphia
So, what are some warning signs or red flags that someone might be experiencing money dysmorphia?
Parden reveals: “Feeling uncertain or anxious about money, even though there is no apparent or immediate shortfall in money, could be a sign of money dysmorphia. It could be that you avoid checking your bank statements or balances and this could be because of stress, or it could be because of a fear of what you might see in there.”
The money expert continues: “Another sign could be fluctuating between periods where you’re spending a lot and reining it back and spending a little, so you kind of vacillate between overspending and underspending. Money dysmorphia could be when you are playing down your success, payments or debts and you feel that you’ve fallen short, that what you have isn’t not enough – even though it might be sufficient.”
Social media and society’s contribution
Do social media and societal pressures contribute to money dysmorphia? The short answer is yes. Social media and societal pressures can exacerbate feelings of inadequacy regarding personal finances.
Parden explains: “Social media presents a curated version of life, where people are only showing the best side of financial life without providing the context. You don’t see the debt, the lack of savings, the stress – that is all hidden.
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“It does kind of amplify these ‘norms’ and create unrealistic expectations. It provokes spending which is really emotionally driven and creates a constant pressure to keep up, so that even if your financial footing is secure, you still feel that you’ve got some way to go. And that in itself can lead to insecurity and a distorted sense of your own financial situation and reality.”
What repercussions can money dysmorphia have?
“Money dysmorphia can often make people avoid getting involved with money and that means they are avoiding financial planning and organisation of their financial life,” Parden explains. “This can lead to missed opportunities like having a safety net reserve of cash,” shares Parden.
“You don’t have any savings because you are constantly spending, you may feel like you haven’t ever got enough and will consistently avoid doing it. That in itself can lead to anxiety, a sense of failure and can affect your mental and physical health.”
How to conquer money dysmorphia?
Ignorance isn’t bliss, particularly when it comes to your wallet. It’s time to take control and get savvy with your finances.
Parden advises: “Take a step back and work out what it is that may be impacting your relationship with money,” suggests Parden. “Just start with small, repeatable steps, like taking 10 minutes out of every week to look at your finances and understand what you’re doing and where your money has gone and what is coming up.
“If you recognise an issue there, try not to judge yourself. Just do regular gentle reviews of your finances because that helps you start to engage with it and might help reduce the fear. It might also help you move towards bridging that gap between how you feel about your finances and actually what is true in your finances.”
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