It may not be a medical diagnosis, but money dysmorphia – a term popularised by the internet – is as real as menopause and just as life-altering. Whether you think you have less financial stability than you do, or much more, chances are your unrealistic perspective on the state of your finances is a sign of money dysmorphia.
Roots and manifestations of money dysmorphia
Much like body dysmorphia, money dysmorphia is when damaging thought patterns stop you from seeing what’s right in front of you. For women, this distorted picture of our finances may be even more pronounced. After all, we’re used to hearing outdated but still pervasive messages about women being shopaholics or needing to leave money matters to the financially astute men in our lives.
This may evoke anxiety around money, leaving us reluctant to spend too much – even though we may be high earners – lest we reinforce such misconceptions. We may second guess our financial choices believing the narratives we’ve grown up with, leaving us obsessing about money or simply feeling inadequate.
Or we may have grown up in a cash-strapped family, making us more prone to flaunting our wealth later on in life proving how far we’ve come, or conversely to never spoiling ourselves lest we land up back in a similar situation.
Money dysmorphia is also intensified by the competitive online world we live in, where those who drive flashy cars or reach influencer status splash their privilege all over our social media feeds. No matter how much wealth we may have accumulated, we may be left feeling “less than”, concerned that we’ll never be in the league of those who are visibly living a luxury lifestyle – something we begin to perceive as normal. And so, we keep spending trying to attain an impossible ideal to reduce our insecurity.
Ways to deal with money dysmorphia
Confront your financial history – Acknowledge how bad financial experiences as a child or young adult may be impacting your attitude towards money. Identify the cause of the problem so you can tackle it and move on positively.
Speak to a financial advisor – Get an outside, expert perspective on your real financial status and how to improve or sustain this. Once you have the facts, get advice on how to make healthier investment and spending decisions.
Budget – Making a monthly budget can help you to assess your progress, make informed spending and saving choices and keep you firmly rooted in reality. Plus, it helps you set aside funds for the fun stuff so you don’t find yourself in a damaging cycle of splurging and regret.
