What is money dysmorphia and how can you overcome it?
Written and accurate as at: Oct 12, 2025 Current Stats & Facts
Keeping a close eye on your finances is healthy, and it’s perfectly normal to feel a pang of anxiety when things aren’t going to plan, but is it possible to take things too far?
These days, social media and uncertainty in both the economy and job market have given rise to something known as ’‘money dysmorphia.’ While it’s not a formal diagnosis, it captures a feeling shared by a growing number of people, particularly millennials and Gen Z.
To put it simply, money dysmorphia is when someone’s perception of their financial situation is at odds with reality. They might be financially stable on paper but still feel constantly anxious, guilty about spending, or obsessed with saving to an unhealthy degree.
You might know someone who fits that description, or maybe you’ve noticed some signs of it in yourself. While different people experience money dysmorphia in different ways, some of the more common symptoms are:
- Hoarding money or being extremely reluctant to part with it
- Worrying about not having enough money, despite being fairly financially secure
- Feeling stressed or guilty whenever you do spend money, even on essentials
- Constantly comparing yourself to others
What causes money dysmorphia?
People experience money dysmorphia for different reasons. For some people it might stem from feelings of scarcity that date back to childhood, or coming of age in a time of economic crisis, a global pandemic, and rapid technological change.
For others, it might come down to a lack of job security (whether perceived or actual), feeling weighed down by debt, or even a belief that if one changes their frugal ways, destitution is just around the corner.
Regardless of its causes and how it’s manifesting, there are a few strategies that might help reduce money dysmorphia and bring some much needed clarity to how you view your finances.
Take a break from social media
It’s no coincidence that money dysmorphia has become more common in the social media age. When your feed is a cascade of other people’s fancy dinners, new cars, and overseas adventures, it’s easy to feel like you’re falling behind.
But there’s often a wide chasm between appearances and reality. After all, that old classmate posing in front of their sports car probably isn’t also posting about the loan they took out to get it.
Try to acknowledge that social media rarely shows the full picture, and consider taking a break from it (or setting daily limits) if you feel like it’s weighing on your mental health.
Try to be objective about your finances
It’s normal to feel some degree of stress around your finances, but try to determine whether this feeling is rooted in legitimate money issues or if it’s your brain playing tricks on you.
One way to do this is to obtain some concrete data. If you don’t do so already, start tracking your income and expenses. Looking at the actual numbers, rather than relying on gut feelings, can give you some much-needed perspective.
If it turns out you’re paying your bills on time, have your debts under control, and are saving consistently, that’s a pretty good confirmation that your feelings aren’t based on any objective measure.
Understand your self-worth and your net worth are separate
Our attitude towards money is shaped by our upbringing, experiences and the beliefs and behaviours of those around us, so rethinking your relationship with it can be challenging.
Try to acknowledge that money is a tool, not a personality trait. Many people tie their self-esteem to their financial status, but your value as a person is ultimately measured by a lot more than your bank balance, income or possessions.
In the end, there might be worse problems than thinking you’re worse off financially than you actually are. But money dysmorphia can still wreak havoc on your mental health. If you still find yourself struggling with unhelpful beliefs towards money, consider speaking to a therapist, or even a financial professional.
