Are you suffering from financial dysmorphia? Here are the signs.

We all have a unique relationship with our money, shaped by our upbringing, culture, generation and more. These influences can change the way we think about finances and influence our choices – sometimes negatively.

When a person has a distorted or unhealthy perception of their financial situation, it can be considered a form of “money dysmorphia.” Although not an officially 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 might think you have money dysmorphia. Learn more about the signs and symptoms, and what to do if you’re having trouble.

Drawing parallels with mental health conditions Body Dysmorphic Disorder (BDD) – Commonly called body dysmorphia – Financial 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 if you have enough to cover all your expenses. Or it can cause you to overspend and have a distorted view of what you can really afford.

According to 2024 Research Conducted by Qualtrics through Intuit Credit Karma, 29% of Americans experience financial dysmorphia, with younger generations more likely to report feelings of financial deprivation (43% of Gen 3 vs 41% of Millennials).

Money dysmorphia is not the same for everyone. Some key indicators that you may be struggling with money dysmorphia may include:

• Avoid checking your bank account balance or constantly checking your account balance

• Maxing out your credit cards

• Constantly worrying about not saving enough money

• Avoid spending any money or making financial decisions because it causes stress

• Feeling guilty or ashamed after spending money

• You feel that you don’t have enough money

• Constantly comparing your financial situation with others

Read more: Most Americans are frustrated with austerity, according to a survey

Regardless of how financial dysmorphia manifests itself, the consequences can be severe and numerous.

“The reality is that money dysmorphia can keep people in a personal and financial rut,” says Han Lim Kim, a licensed clinical psychologist at Clarity Therapy NYC. You may be losing or damaging relationships by avoiding spending on activities with friends and family and missing out on the joys associated with these relationships. Saving money or just keeping money in a savings account and you may miss out on opportunities to invest properly.

There is no single cause of money dysmorphia. Figuring Out How to Fight You need to do some work to figure out where the relationship lies between your financial situation and your relationship with money.

If you think you’re struggling with money dysmorphia, there are a few steps you can take to address it.

Pay attention to your feelings about money. Note the situations that worry you the most. Does checking your bank account balance cause you stress? Do you feel instant regret after making a purchase?

Recognizing when irrational or inappropriate emotions arise around money can help you ground yourself and put the right strategies in place to correct your perception.

Setting a monthly budget and having a clear idea of ​​your income and expenses can give you peace of mind and eliminate any worries about whether you will be able to cover your expenses each month or save for the future. Set aside time each month to review account balances and track progress toward your future goals so that any feelings you have around money are grounded in reality.

Read more: Your guide to budgeting for 2025

A lack of negative thoughts about money can make you adopt a mindset. Kim suggests reframing those thoughts to see your financial situation in a positive light.

“Thoughts like ‘I’m bad with money’ or ‘I can’t retire if I go out to dinner tonight’ can be corrected by examining the facts and creating a balanced perspective,” she says.

Instead, these negative thoughts can be adjusted to “I haven’t learned how to budget yet, but I can start now” or “That restaurant may be out of budget, but I can suggest a more affordable option instead.” He explained.

Financial advisors aren’t just for the rich; They work with people from different economic backgrounds. Talking to a professional can help you clearly understand where your finances stand and create a plan to achieve your goals, easing your financial worries.

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 would be fine financially, he woke up every morning with the feeling that something terrible was going to happen in the pit of his stomach,” said Michael Liersch, the head of the company. Advice and planning for Wells Fargo. “When he started and built the business, he realized that it was interfering with his retirement and family enjoyment. The main issue was the lack of a goal-oriented plan.

Liersch explained that they put together a plan that describes their clients’ goals, assets and spending patterns and predicts that over time. “This section made sure that the technical aspects of his financial life were covered,” he said. But he should feel psychologically safe.

Liersch says seeing the plan in digital format gives the client comfort every morning, knowing immediately if it’s off track and helping them take action. “This gave him the peace of mind to lead his life.”

Read more: 5 psychological money hacks to reduce spending and increase savings