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Warning signs -

If you suspect that you, or someone you know, may be struggling with money dysmorphia, there are certain signs to look out for.

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Constantly worrying - First up is constantly worrying about money, even if you are financially stable. People with money dysmorphia often think about their financial situation day in, day out.

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Obsessing over small expenses -

It is also common for people with this problem to obsess over small expenses or feel completely paralyzed when it comes to making financial decisions.

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Refusing to spend -

Money dysmorphia can, in certain cases, cause people to stop spending altogether, even on essentials, such as groceries.

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Constant comparison with others -

Another common tendency of people with money dysmorphia is to constantly compare themselves with others. This can lead to feelings of inadequacy.

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Feelings of guilt -

You may also avoid having conversations about money, or have feelings of guilt after spending money, even if it’s something you really need.

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Always aiming for more - It is also common for people to constantly feel like they should be earning more, even if they are financially independent and stable.

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Uncontrollable spending - On the flip side, money dysmorphia may also cause people to buy expensive and luxurious items that they can’t really afford, just to make themselves feel adequate.

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Causes - There are several different reasons that someone may develop money dysmorphia. The ongoing conversation about economic uncertainty certainly doesn’t help.

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Social media -

More important, however, is the comparison culture that has developed thanks to social media. People are constantly comparing themselves with people they see online, and this can lead to feelings of inadequacy.

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Past trauma - Past trauma, whether related to finances or not, can also play a role in the development of money dysmorphia.

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Personality type - Finally, a person’s unique tendencies and personality traits can make them more susceptible to developing this problem.

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Who is affected? -

When it comes to the demographic most affected by money dysmorphia, it is clear that younger generations suffer more than older generations.

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Statistics - Indeed, according to a 2024 study conducted by Credit Karma, up to 43% of Gen Zers and 41% of Millennials experience money dysmorphia.

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Instagram generation -

The obvious explanation for this is that these generations are spending far more time on social media than previous generations.

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Other factors -

Younger people are also facing a unique combination of financial pressures that include student loans, job uncertainty, and a high cost of living.

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Consequences -

Although it may not sound too bad, money dysmorphia can have serious consequences for your mental health, as well as your finances.

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Stress - On the one hand, it can cause high levels of stress; constantly worrying for no reason about money takes its toll on a person’s mental well-being.

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Relationship problems - In turn, money dysmorphia can harm relationships, as a person takes their worries about money out on those around them.

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Financial problems -

In addition to mental health issues, money dysmorphia can cause actual financial problems, as it can lead to reckless spending behaviors, such as impulse buying.

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Getting over money dysmorphia -

Thankfully, if you feel you are struggling with money dysmorphia, there are things you can do to free yourself from this toxic mindset.

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Reframe money in your mind -

First up, try your best to reframe money in your mind. Thinking of money as a tool will help you free yourself from constant expectations and comparisons.

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Identify anxious thoughts - Next, try and use mindfulness techniques to identify anxious thoughts about money. Notice the thought, observe it, and allow it space to exist without sending yourself into a spiral.

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Challenge your beliefs -

It can also be helpful to start challenging your beliefs about money. For example, if you always tell yourself that you’ll never understand how to properly manage your finances, challenge where that belief comes from and whether it’s true.

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Be careful with social media -

Perhaps most importantly, be mindful about how you interpret social media. The vast majority of what people post on Instagram and TikTok does not show the full picture.

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Be careful with social media -

For example, your best friend may have just posted about their recent vacation or new car. It's far less likely that they will post about their credit card bill or upcoming lease payment.

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Examine the reality -

It is also a good idea to take some time to examine your financial reality. Looking at the facts on a regular basis can help reduce anxiety around uncertainty.

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Practice gratitude -

Finally, practicing gratitude is a great way to combat money dysmorphia. Instead of focusing on your perceived financial shortcomings, focus on what you have achieved.

Sources: (Verywell Mind)

See also: Clever tricks to save money while shopping

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