Are you one of those people who constantly worry about your financial state, even when your bank account is in the green? Do you feel like you’ll never have enough, no matter how much you save or earn?
You might be experiencing money dysmorphia, which is a skewed perception of your financial reality that keeps you trapped in a cycle of stress and self-doubt. But here’s the good news: overcoming money dysmorphia is not only possible, it’s empowering.
In definition, according to US News Money, money dysmorphia is a psychiatric disorder characterised by a deep sense of dissatisfaction with one’s financial situation. It is classified into three types: earning obsession, money hoarding, and adverse shopping.
The above source further mentions that these feelings of inadequacy can cause individuals to feel compelled to earn more to feel secure, leading to financial instability, causing anxiety, worry, and guilt.
“For example, you may have excessive savings sitting in your bank account but are too afraid to lose any that you avoid investing, which could help it grow. Overspending can turn into expensive consumer debt and credit troubles, while overworking can take a toll on your physical health, leading to expensive medical care.”
Relevant publications will dive into practical tips to help you break free from those nagging thoughts and create a healthier, more confident relationship with your finances.
Very Well Mind suggests that you reframe money as a tool, not a measure of self-worth or personality, to reduce obsessive financial worries, claiming that this shift allows you to break free from unrealistic expectations and comparisons. “Becoming aware of your anxious thoughts around money without immediately reacting to them can help you catch the spiral before it deepens. Consistent mindfulness gives you space to challenge these thoughts and shift to a healthier perspective.”
To manage your finances effectively, consider your values, educate yourself on finances, and create a budget, states Chime. You are advised to write down your values in a journal or on your phone to remember them.
The above publication also adds that you need to improve your financial literacy by reading financial blogs and podcasts, creating a budget to track your money and setting financial boundaries. “If you struggle with overspending, you can try the envelope system. This is when you set spending limits for different expense categories such as groceries, entertainment, and gas. Then, you put the exact amount of cash into each envelope. When the money in an envelope is gone, you can’t spend any more on that category until the following month.”
