Do you suffer from money dysmorphia?

Are unrealistic beliefs about your finances creating anxiety or stopping you from saving? By LARA OWEN

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HAVING a clear grasp of our financial health is crucial if we want to live life to the full - and save. But warped views around cash are piling on the stress.

Online searches for “money dysmorphia” have rocketed in recent years - the term used when people develop a distorted perception of their finances, either exaggerating wealth or underestimating their security.

The pressure to “keep up with the Joneses” can fuel it too, resulting in intense feelings of anxiety, guilt and stress related to spending and saving.

To better understand this concept, Matthew Parden, CEO of money management app Marygold & Co, gives the lowdown on money dysmorphia is, the factors that contribute towards it and practical strategies to help manage and overcome it.

What is it?

“Money dysmorphia is effectively when the distorted perception of one’s financial health, how you feel about your money, doesn’t necessarily reflect the reality,” says Matthew.

“This can be emotionally driven, shaped by irregular patterns or social pressures to keep up.”

It can lead to both overspending and excessive saving, depending on the individual's perception.

“We've worked with anxious savers, avoidant savers and people who like to spend, so there's lots of different types of personality and money dysmorphia can manifest in all of them,” he adds.

What are the symptoms?