8 signs you have money dysmorphia (and how to fix it)

Comparison gets to us all

If it feels impossible to figure out your financial situation, you may be experiencing money dysmorphia. Here are the signs to look out for and expert tips to feel more confident in your money moves. 

Confused as to why your friend with no outgoings and a well-paying job constantly says he’s too broke to go out for dinner, shopping, or even for coffee? Then heard your other friend relay her stress over her growing debt to you before showing up with new Miu Miu sunglasses? You’re witnessing money dysmorphia.

“Money dysmorphia is the distance between a person’s perceived financial status and their actual financial reality,” Financial therapist Lindsay Bryan-Podvin told The Good Trade. Some people may fret that they’re never going to get close to their financial goals despite their savings continually growing, and others may truly believe they can start to shop designer brands while living paycheck to paycheck. And it’s common to jump from one money mindset to the next within days. 

Some researchers have described this as the objective-subjective wealth relationship and largely blamed anxiety for our failure to understand our financial situations and act accordingly.

Here are some signs you may have money dysmorphia:

#1. You avoid checking your bank account and feel stressed when you do

#2. You constantly worry about your savings

#3. Spending money makes you feel guilty

#4. You obsess over even the smallest expenses

You constantly worry about your savings

#5. Making financial decisions paralyses you

#6. You avoid conversations about money

#7. You are constantly comparing your financial situation to others

#8. You buy things you can't afford to feel good enough

You avoid conversations about money. Image: Pexels

Financial insecurity affects all of us, regardless of how secure our finances actually are, and it seems to be hitting 20 and 30-somethings the hardest. I don’t know any Millennials or members of Gen Z who haven’t gone through a period of panicking over the financial impact of buying a coffee every day at work. 

A study from Credit Karma confirmed this, finding that 43 per cent of Gen Z and 41 per cent of Millennials have suffered from money dysmorphia. 

While many of us still feel like we need to shy away from talking about finances with others, this can make it feel almost impossible to understand the average income, savings and milestones of people in our age and tax brackets. 

A quick scroll on social media can make us question if we’re all meant to be able to pay for an overseas trip or a deposit on our first home in our twenties, and it can be unbelievably difficult to know if we’re ahead of everyone else or miles behind when it comes to savings. 

A quick scroll on social media can make us question if we’re all meant to be able to pay for an overseas trip or a deposit on our first home in our twenties. Image: Getty

Finance expert and former financial adviser, Victoria Devine says it’s important to ground yourself in the facts if you’re navigating money dysmorphia.

The expert's tips for dealing with money dysmorphia:

- Take time to regularly check in on your budget

-  Track your progress when working towards your goals

- Shift your focus towards what you can control instead of comparing yourself to others

The She's On The Moneyfounder reminds us that "financial progress isn't always linear, and it’s okay to have off days."

Shift your focus towards what you can control instead of comparing yourself to others. Image: iStock

Social media has a lot to answer for when it comes to our constant comparison and goal setting based on others’ success. 

“Social media often shows a highlight reel of people's financial successes, which can make us feel like we're falling behind”, Devine says. “Remembering that we all have different starting points, goals, and circumstances can help reduce the pressure to measure up to others.”

“Being kind to yourself and celebrating small wins along the way can make a significant difference.”

Originally published as 8 signs you have money dysmorphia (and how to fix it)