Regional Support Manager, Chris Nicholson, talks about a problem that seems to be becoming more common.
Whether you’ve heard of it or not, money dysmorphia is a growing psychological and financial phenomenon affecting people in the UK.
Much like body dysmorphia, money dysmorphia is rooted in distorted thinking. You might feel perpetually broke despite earning a decent salary, or conversely, believe you’re financially secure while ignoring mounting debt. It’s about mindset, emotion, and perception rather than just numbers.
What Is Money Dysmorphia?
Money dysmorphia refers to a state of mind where your perception of your financial health is out of step with reality. It can manifest itself in a number of ways:
– Feeling poor or anxious about money despite having decent savings or a steady income
– Spending freely and living beyond your means as you’re convinced you’re financially invincible
– Constantly making unfavourable comparisons of your financial situation with that of others, especially online influencers or your peers.
Rather than being an issue with budgeting, this is a psychological problem. As financial pressures mount due to inflation, housing costs, and student debt, money dysmorphia is becoming increasingly common.
Why is it becoming more prevalent?
Several factors contribute to the rise of money dysmorphia:
Social media and financial comparison
It’s well known that people posting on platforms like Instagram and TikTok often just present a carefully curated version of their lives. Images of luxury lifestyles, designer handbags and clothes are often the public image, whereas in reality they have huge credit card debt, a wealthy family supporting them or mountains of stress.
Cost of living crisis
The war in Ukraine and Liz Truss’ disastrous tenure as prime minister have left us with rising energy bills, rent and mortgage hikes, and stagnant wages. All of which have created a climate of financial anxiety. Even high wage earners may feel financially insecure, especially when their purchasing power has diminished over the past few years.
Cultural silence around money
As a nation, we seem to be uncomfortable when talking about money. Without open conversations, we’re forced to rely on assumptions and comparisons, which can fuel distorted perceptions.
Mental Health and Financial Wellbeing
There are a number of mental health conditions such as anxiety, low self-esteem that can all skew how we view our finances. Someone with anxiety might catastrophise minor financial setbacks, while it’s common for people with ADHD to struggle with impulsive spending and then feel shame after a splurge.
Signs you might be experiencing money dysmorphia
People with money dysmorphia may:
– Feel guilty spending money, even on essentials
– Constantly check their bank balance as they’re afraid it’s lower than it really is
– Avoid looking at bills or statements at all
– Compare their financial situation to others’ and feel inadequate
– Believe they’re “bad with money” despite evidence to the contrary.
How to reframe your financial perspective
If any of this sounds like you, then you’re not alone! However, there are ways you can change your mindset. Here are a few suggestions:
Track your finances objectively
Use budgeting apps like Emma, Moneyhub or Snoop to get a clear picture of your income, spending, and savings. Seeing the reality of your financial situation can help challenge any mistaken perceptions you may have.
Limit social media exposure
Unfollow accounts that trigger comparison or anxiety and make sure that your feed includes people who share realistic money journeys, as well as financial experts and mental health advocates.
Talk openly about money and learn from others
Talk to people you trust among your friends and family. It might surprise you how many people feel a similar way to you. You might also want to consider joining UK-based communities like Money Saving Expert forums or listening to The Financial Wellbeing Podcast for additional support.
Seek professional help
If money dysmorphia is really affecting your mental health, you might want to consider speaking to a therapist. Try to choose one that has experience in helping people with financial anxiety. You can also get access to resources and support from organisations like the mental health charity Mind UK and debt charity StepChange.
Build a healthy relationship with your finances
Your worth as a person is not defined by your bank balance. To achieve a healthy relationship with your finances, you need to engage with the reality of your situation so you can achieve clarity, confidence, and control.
Recognising the signs of money dysmorphia can help set you up to take the necessary steps to realign your perception with the reality of your circumstances and build a healthier relationship with money.