We all have a unique relationship with our finances shaped by our upbringing, culture, generation, and more. These influences can alter our perception of our finances and impact our choices — sometimes negatively.
When a person has a distorted or unhealthy perception of their financial situation, it may be considered a form of “money dysmorphia.” Although it’s not a formally recognized psychological condition, the term is increasingly used to describe irrational beliefs or feelings about wealth, spending, or financial stability.
If that sounds familiar, you may wonder if you have money dysmorphia. Learn more about the signs and symptoms, and what to do if you’re struggling.
Drawing parallels to the mental health condition of body dysmorphic disorder (BDD) — commonly referred to as body dysmorphia — money dysmorphia refers to a distorted perception of your financial situation that doesn’t match reality.
For example, money dysmorphia can cause stress and anxiety around spending money, even though you earn plenty to cover all of your costs. Or it may drive you to overspend and have a distorted view of what you can truly afford.
According to a 2024 study conducted by Qualtrics on behalf of Intuit Credit Karma, 29% of Americans experience money dysmorphia, with younger generations being more likely to report feelings of financial inadequacy (43% of Gen Z and 41% of millennials).
Money dysmorphia doesn’t manifest the same way in every person. Some key indicators that you may be struggling with money dysmorphia can include:
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Avoiding checking your bank account balances, or constantly checking your account balances
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Maxing out your credit cards
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Constantly worrying about not saving enough money
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Avoiding spending any amount of money or making financial decisions because it causes you anxiety
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Feeling guilty or ashamed after spending money
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Feeling like you don’t have enough money
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Constantly comparing your financial situation to others
Read more: Most Americans are dissatisfied with their savings, survey shows
Regardless of how money dysmorphia may present itself, the consequences can be severe and far-reaching.
“The reality is that money dysmorphia can hold people back in personal and financial ways,” said Han Lim Kim, a licensed clinical psychologist at Clarity Therapy NYC. “You might be losing or hurting relationships by avoiding spending on activities with friends and family and miss out on the joys connected to these interactions. You might hoard cash or only keep money in a savings account, missing out on opportunities to appropriately invest.”
There isn’t a singular root cause of money dysmorphia. Knowing how to combat it will require you to do some work to figure out where the disconnect between the state of your finances and your relationship with money lies.
If you think you may be struggling with money dysmorphia, there are a few steps you can take to work toward resolving it.
Pay close attention to your feelings about money. Take note of the instances when you feel most anxious. Does checking your bank account balance cause anxiety? Do you feel instant regret after making a purchase?
Pinpointing the moments when illogical or unwarranted feelings surrounding money arise can help you put the right strategies in place to ground yourself and adjust your perception.
Having a budget and a clear idea of your income and expenses each month can give you peace of mind and quell any fears you may have about being able to cover your expenses each month or save for the future. Set a time each month to review your account balances and track your progress toward future goals so that any feelings you have around money can be based on facts.
Read more: Your guide to budgeting for 2025
Negative thoughts about money can lead you to adopt a scarcity mindset. Kim suggested reframing those thoughts to view your financial situation in a more positive light.
“Thoughts like ‘I’m bad with money’ or ‘If I go out for dinner tonight, I’ll never be able to retire’ can be reframed by examining the facts and creating a more balanced perspective,” she said.
Instead, these negative thoughts can be adjusted to “I haven’t learned how to budget yet, but I can start now,” or “that restaurant might be out of my budget, but I can suggest a more affordable option instead,” she explained.
Financial advisors aren’t just for the wealthy; they work with all kinds of people from various economic backgrounds. Speaking with a professional can help you get a clear sense of where your finances stand and create a plan for achieving your goals, which can put your financial anxieties at ease.
Read more: What is a financial advisor, and what do they do?
“I worked with a client who told me that even though he knew he was going to be OK financially speaking, he always woke up every morning with a pit in his stomach that something terrible was going to happen,” said Michael Liersch, head of advice and planning for Wells Fargo. “While it had served him when he started and built his business, he realized that it was interfering with his ability to enjoy retirement and family. The core issue was that he did not have a goals-based plan.”
Liersch explained that together, they created a plan outlining his client’s goals, assets, and spending patterns, then projected that out over time. “That part ensured that the technical aspects of his financial life were covered,” he said. “But he also needed to feel psychologically safe.”
Liersch said that seeing the plan in a digital format gave his client comfort every morning, knowing that if it was ever off track, he would know immediately so he could take action. “That put his mind at ease so he could live his life.”
Read more: 5 psychological money hacks to cut spending and increase savings