Are you an overspender or extreme saver? You may need ‘cash dysmorphia’

[ad_1] Your assist helps us to inform the story From reproductive rights to local weather change to Massive Tech, The Unbiased is on the bottom when the story is growing. Whether or not it is investigating the financials of Elon Musk's pro-Trump PAC or producing our newest documentary, 'The A Phrase', which shines a light-weight on the American ladies preventing for reproductive rights, we all know how essential it's to parse out the details from the messaging.

At such a crucial second in US historical past, we'd like reporters on the bottom. Your donation permits us to maintain sending journalists to talk to either side of the story.

The Unbiased is trusted by Individuals throughout the whole political spectrum. And in contrast to many different high quality information shops, we select to not lock Individuals out of our reporting and evaluation with paywalls. We imagine high quality journalism needs to be out there to everybody, paid for by those that can afford it.

Your assist makes all of the distinction. Learn extra Many individuals will recognise the sensation of scrolling by another person’s social media feed, observing their lavish life-style and wishing they'd the identical.

This widespread expertise, pushed by the stress to 'sustain with the Joneses', can distort our monetary actuality - referred to as ‘cash dysmorphia’.

It manifests as a skewed notion of 1's personal wealth, resulting in intense nervousness, guilt, and stress round spending and saving.

Understanding its contributing elements is essential for growing sensible methods to handle and overcome it.

<img src="https://static.independent.co.uk/2025/05/16/00/2c06f77a01aae79507074f832de8076bY29udGVudHNlYXJjaGFwaSwxNzQ3MzIxNjM2-2.3411795.jpg" srcset="https://static.independent.co.uk/2025/05/16/00/2c06f77a01aae79507074f832de8076bY29udGVudHNlYXJjaGFwaSwxNzQ3MzIxNjM2-2.3411795.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/05/16/00/2c06f77a01aae79507074f832de8076bY29udGVudHNlYXJjaGFwaSwxNzQ3MzIxNjM2-2.3411795.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Money dysmorphia can lead to both overspending and excessive saving, depending on the individual’s perception" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Cash dysmorphia can result in each overspending and extreme saving, relying on the person’s notion (PA Archive) What's ‘cash dysmorphia’?

“Cash dysmorphia is successfully when the distorted notion of 1’s monetary well being, how you're feeling about your cash, doesn’t essentially mirror the truth,” says Matthew Parden, CEO of cash administration app Marygold & Co. “This may be emotionally pushed, formed by irregular patterns or social pressures to maintain up.”

Cash dysmorphia can result in each overspending and extreme saving, relying on the person’s notion.

“We’ve labored with anxious savers, avoidant savers and individuals who wish to spend, so there’s a number of several types of persona and cash dysmorphia can manifest in all of them,” says Parden.

What are some indicators or purple flags that somebody is perhaps experiencing cash dysmorphia?

“Feeling unsure or anxious about cash, though there isn't any obvious or instant shortfall in cash, may very well be an indication of cash dysmorphia,” highlights Parden. “It may very well be that you simply keep away from checking your financial institution statements or balances and this may very well be due to stress, or it may very well be due to a worry of what you would possibly see in there.

“One other signal may very well be fluctuating between durations the place you’re spending so much and reining it again and spending just a little, so that you sort of vacillate between overspending and underspending. Cash dysmorphia may very well be when you find yourself enjoying down your success, funds or money owed and you are feeling that you simply’ve fallen brief, that what you may have isn’t not sufficient – though it is perhaps adequate.”

Get a free fractional share price as much as £100.Capital in danger.

Phrases and situations apply.

Go to web site ADVERTISEMENT

Get a free fractional share price as much as £100.Capital in danger.

Phrases and situations apply.

Go to web site ADVERTISEMENT

What position does social media and societal pressures play in fuelling cash dysmorphia?

Social media and societal pressures can contribute to emotions of inadequacy in terms of private funds.

“Social media presents a curated model of life, the place individuals are solely exhibiting the perfect facet of economic life with out offering the context,” says Parden. “You don’t see the debt, the shortage of financial savings, the stress – that's all hidden.“It does sort of amplify these ‘norms’ and create unrealistic expectations. It provokes spending which is de facto emotionally pushed and creates a relentless stress to maintain up, in order that even when your monetary footing is safe, you continue to really feel that you simply’ve acquired some approach to go. And that in itself can result in insecurity and a distorted sense of your individual monetary scenario and actuality.”

Can cash dysmorphia be tied to previous monetary trauma or upbringing?

“In case you’ve grown up in a financially unstable surroundings or been by occasions of poverty or disaster or shortage, that may typically make individuals carry worry and disgrace round cash,” displays Parden. “These experiences can drive/ influence many issues in your life round behaviour and feelings, and cash is simply one of many areas the place which may present itself.”

What penalties can cash dysmorphia have?

“Cash dysmorphia can typically make individuals keep away from getting concerned with cash and meaning they're avoiding monetary planning and organisation of their monetary life,” says Parden.”This will result in missed alternatives like having a security web reserve of money.

“You don’t have any financial savings since you are continually spending, you might really feel such as you haven’t ever acquired sufficient and can persistently keep away from doing it. That in itself can result in nervousness, a way of failure and might have an effect on your psychological and bodily well being.”

<img src="https://static.independent.co.uk/2025/07/11/08/10153659-43940ed4-b798-4623-a08e-500ad582c0d4.jpg" srcset="https://static.independent.co.uk/2025/07/11/08/10153659-43940ed4-b798-4623-a08e-500ad582c0d4.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/07/11/08/10153659-43940ed4-b798-4623-a08e-500ad582c0d4.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="It can lead to a number of mental health issues" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

It may well result in quite a lot of psychological well being points ((Alamy/PA)) How can somebody start to beat cash dysmorphia?

Ignorance will not be at all times bliss, particularly in terms of funds. So, be proactive and begin participating together with your funds.

“Take a step again and work out what it's which may be impacting your relationship with cash,” advises Parden. “Simply begin with small, repeatable steps, like taking 10 minutes out of each week to have a look at your funds and perceive what you’re doing and the place your cash has gone and what's developing.

“In case you recognise a problem there, strive to not choose your self. Simply do common mild critiques of your funds as a result of that helps you begin to interact with it and would possibly assist cut back the worry. It may additionally provide help to transfer in direction of bridging that hole between how you're feeling about your funds and truly what's true in your funds.”

There are additionally a number of apps out there that can provide you a great overview of your monetary life.

“In case you start to know your funds from a behavioural side, that might provide help to determine emotional triggers that trigger you to spend or save,” says Parden. “Apps can even provide help to to not spend or withdraw. On the Marygold & Co app you possibly can set a time lock and different apps have related instruments that may put a little bit of friction in your spending earlier than you make funds.”

What are the advantages of getting a clearer, more healthy monetary mindset?

“When you have a optimistic monetary mindset and the instruments, it offers you the flexibility to really begin saving for these issues that are going that can assist you in your monetary life, like increase money reserves,” says Parden. “Making a monetary plan may also provide help to meet your short-term and long-term targets, whether or not it’s saving for a marriage or for a vacation. Simply participating together with your funds can have super long-term advantages.”