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.
“It can lead to racking up debt on credit cards and overdrafts, potentially landing themselves in financial difficulty.”
With a busy lifestyle, Olivia Fox, a 28-year-old from Bristol, sometimes finds herself splurging on items.
She said: “I get FOMO - fear of missing out - badly, so if I see everyone else doing something, then it’s some- thing that I also want to book there and then, no matter what the price tag is.”
Olivia says she has a “you only live once” mindset, adding: “I'm always busy on weekends doing things that cost money too.”
She says she isn't in debt but does dip into savings for “monthly splurges”.
“If there is a night out that is coming up, or someone's birthday, then I won't wear the same outfit again and I'll have to buy something new,” she added.
It's not always about splashing the cash either - it can work in reverse and some people may become more frugal than they need to be and needlessly say no to holidays, opportunities and purchases.
And while it’s important to have a financial buffer built up as savings, Christie says that a lot of people “panic save”.
For some, distorted money perceptions can have lasting impacts on their overall fin...
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.
“It can lead to racking up debt on credit cards and overdrafts, potentially landing themselves in financial difficulty.”
With a busy lifestyle, Olivia Fox, a 28-year-old from Bristol, sometimes finds herself splurging on items.
She said: “I get FOMO - fear of missing out - badly, so if I see everyone else doing something, then it’s some- thing that I also want to book there and then, no matter what the price tag is.”
Olivia says she has a “you only live once” mindset, adding: “I'm always busy on weekends doing things that cost money too.”
She says she isn't in debt but does dip into savings for “monthly splurges”.
“If there is a night out that is coming up, or someone's birthday, then I won't wear the same outfit again and I'll have to buy something new,” she added.
It's not always about splashing the cash either - it can work in reverse and some people may become more frugal than they need to be and needlessly say no to holidays, opportunities and purchases.
And while it’s important to have a financial buffer built up as savings, Christie says that a lot of people “panic save”.
For some, distorted money perceptions can have lasting impacts on their overall fin...
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Daily Record (Digital) - 1 Issue, March 19, 2025