Taking a bank balance reality check

WARPED IDEAS ABOUT FINANCES SHOW THAT MORE PEOPLE ARE SPENDING BEYOND THEIR MEANS WHILE OTHERS ARE SAVING THEIR WAY TO SADNESS

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IT'S the latest financial buzzword, and “money dysmorphia" is wreaking havoc on bank balances.

Put simply, it means having a warped view of your finances, where there's a major mismatch between reality and perceptions of wealth. It leads to out-of-control spending and mountains of debts.

Tinisha Graham, a money-saving expert at online budgeting tool IE Hub, said: “Money dysmorphia is a growing challenge, and it’s something many people are grappling with today, often without even realising it.”

How to spot the signs

Tinisha explained: “It's a reflection of the deep emotional ties we have to money, whether it’s fear of not having enough or avoiding financial truths.

“The key to overcoming it is self-awareness and addressing the emotional triggers that shape our beliefs about money. Some people may be chasing unattainable lifestyles, triggering irrational spending decisions, leading to anxiety, panic and distress.”

Christie Cook, a finance expert from Hodge Bank, said: “Some people overspend, believing they have more money than they do.