Did You Know that You Could be Suffering from Money Dysmorphia without Knowing?

By Evans Momodu
2 minute digest
Published 14:18 UK GMT, March 5, 2025



Searches for "money dysmorphia" have surged 136% in the past year, as more people become aware of financial anxiety and how it affects their spending habits.

But what exactly is money dysmorphia? Why is it a concern? And could you be experiencing it?

What is Money Dysmorphia?

Money dysmorphia refers to a disconnect between financial reality and perception, where individuals misjudge their financial situation—either believing they have less money than they actually do or thinking they have more money than they can afford to spend.

Although money dysmorphia is not a medical diagnosis, experts warn that it can lead to unhealthy financial behaviours, including excessive financial anxiety or reckless spending.

Signs of Money Dysmorphia

1. Feeling financially insecure despite having savings
2. Avoiding small expenses (e.g., skipping meals out even when affordable)
3. Panic over unexpected costs, even if manageable
4. Fear of checking bank balances after spending
5. Difficulty spending on oneself, even when financially secure
6. Impulse spending due to an inaccurate belief in financial security

When You Feel Poorer Than You Are

Some individuals underestimate their financial stability, leading to excessive caution and stress about money.

Finance expert Christie Cook from Hodge Bank explains:
"With social media fuelling unrealistic comparisons and constant negative news about the cost of living crisis, it's no surprise that many people are experiencing financial anxiety."

One example is Emma Hull, a 29-year-old homeowner with strong savings and investments, who says money dysmorphia makes her feel anxious about finances.

"I recently received a speeding fine, and even though I could afford it, it ruined my day because it meant I couldn't save as much as I wanted to," Hull shared.

She also finds it hard to treat herself, even when her bank account confirms she can.

"I would love to care less and be able to treat myself more, but my mindset often tells me that I can't, even though my bank account says otherwise."

When You Spend More than You Can Afford

On the other hand, some people overestimate their financial security, leading to overspending and financial instability.

???? Wealth management expert Ollie Saiman, co-founder of Six Degrees, works with high-net-worth clients who struggle with financial insecurity despite their vast wealth.

"We find it extremely common to encounter financial insecurity—even in clients who have more wealth than they could ever spend," he says.

Even with financial advisors confirming long-term stability, many still feel anxious about "not having enough" and struggle to spend their wealth.

How to Manage Money Dysmorphia

1. Create a budgeting system – Apps like Monzo allow users to set up separate savings pots to allocate funds for specific expenses.
2. Set realistic financial goals – Understand how much you actually need for savings, investments, and everyday spending.
3. Reframe your mindset – Recognize that savings are meant to be used for both emergencies and enjoyment.
4. Seek financial guidance – Talking to financial advisors or money coaches can help address underlying fears about financial security.

Money dysmorphia is becoming increasingly common, but understanding financial reality and developing healthier money habits can help reduce financial stress and encourage balanced spending and saving behaviours.
Source: Sky news 
Image: Linkedin