October 4, 2024
How “Money Dysmorphia” Could Be Hurting Your Finances #NewsUnitedStates

How “Money Dysmorphia” Could Be Hurting Your Finances #NewsUnitedStates

CashNews.co

“Money dysmorphia can often make people believe they’re doing financially worse or better than they actually are,” Ayoola said. “This can manifest as saving excessively because you feel you’re behind in comparison to your peers. Likewise, it can show up as overspending because you feel you’re financially secure when that’s not the case.”

If you have money dysmorphia, you might feel strong emotions about your finances when you see friends reach financial milestones, she added. Feelings like sadness, anxiety, stress, frustration, unworthiness or overconfidence may lead to behaviors that harm your financial health ― like overspending on a vacation. 

“People may find themselves living lifestyles they can’t afford,” Ayoola explained. “In the reverse, people who are financially secure may not be living full and abundant lives because they believe they don’t have enough, even though their financial reality may say otherwise. Ultimately, money dysmorphia can hinder people from achieving their financial goals or enjoying their achievements.”

By excessively saving, people with money dysmorphia can miss out on opportunities to invest and actually grow their wealth. 

“Some people might be scared to spend money, even on the things they actually need,” Kennedy said. “Others might constantly worry about their finances, regardless of what their actual situation is. They may feel anxious or guilty when making purchases, including necessary ones.”

She noted that common signs of money dysmorphia include obsessively checking bank balances, avoiding financial discussions, comparison to others, having a distorted perception of wealth, fear of financial ruin, being overly critical of your financial decisions, and stressing over future finances.

For younger generations in particular, there’s also a temptation to tie their feelings about their financial situation to what they see and present on social media, even if it’s not reality. Many avoid addressing or seeking help for their debt, which fosters a cycle of financial instability. 

“The impact goes beyond money,” Kennedy noted. “It can strain relationships and affect overall well-being. People can also end up depriving themselves of basic needs and joys, which can be detrimental to both mental and physical health.”

How can you deal with money dysmorphia?

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