Money dysmorphia is the new financial phenomenon fuelling reckless spending and anxiety

The cost-of-living crisis and social media are fuelling a new financial phenomenon - money dysmorphia.

The cost-of-living crisis and social media are fuelling a new financial phenomenon - money dysmorphia.

Searches have rocketed by more than 135 per cent in the last year for the term, which refers to a disconnect between someone’s cashflow reality and perception of their budget.

According to the experts, money dysmorphia can cause real panic around finances, triggering anxiety which could contribute towards irrational spending behaviours.

Christie Cook, from Hodge Bank, says: “With social media fuelling unrealistic comparisons and constant negative news about the cost-of-living crisis, it’s no surprise that many people are experiencing financial anxiety.

“Those that suffer with money dysmorphia can demonstrate extremely unhealthy spending habits. 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.

“On the other hand, some may become overly frugal as they feel the need to make some serious cut-backs. They may avoid small expenses like going out for a meal, even if they can afford it, as they’re financially insecure and worry that their savings aren’t as high as they need to be.”

But how can you work out if you are suffering from money dysmorphia and how do you tackle it? Christie is on hand to help.

CASHFLOW WOE

DO you always have money on the mind? If so you could be suffering from the phenomenon according to the expert.

Christie says: “The most obvious way to recognise if you suffer from Money Dysmorphia is by worrying about money too much when there is no immediate danger, such as losing assets or heading into bankruptcy.

“If checking your bank balance causes you stress or panic, or you feel guilty about how much you earn or save, then this could be a trait of Money Dysmorphia.

“If these feelings sound familiar, it’s useful to research or speak to a therapist about.”

PAY YOUR WAY

RECKLESS spending habits are not always about splurging on yourself. It’s worth keeping an eye on all your transactions.

The expert said: “If you’re often covering the costs for other people, such as buying them lunch, or offering to take them places when you can’t afford to, this could be a sign that you’re suffering from Money Dysmorphia.

“Equally, if you avoid bank statements or dealing with financial issues, then you could be in denial about how much you’re spending - ignorance isn’t always bliss, especially if it means you’re paying interest or late fees by ignoring these.”

MONEY MOODS

KEEPING an eye on your emotions when it comes to your finances is important.

While it’s completely normal to have some worries and react to big budget blows, being overwhelmed by the smaller things can be a sure sign of struggling, the expert explains.

Christie said: “Does an unexpected expense like a parking fine ruin your entire week, even when you can afford to pay it?

“Or do you feel undeserving of financial success, and pay-rises?

“These excessive emotional reactions to money are a major trait of Money Dysmorphia.”

And once you recognise you have an issue you can tackle it.

IN THE PAST

WHAT has happened in your financial past can have a big bearing on how you feel about money, whether it’s your own debts or how your family has dealt with their cashflow.

Christie said: “Growing up around people, such as parents, who suffered financial hardship can shape attitudes into your adulthood.

“It’s important to recognise your own worth and how your finances are different.

“Meanwhile, if you’ve experienced bankruptcy or finance fraud in the past, it can leave you feeling more anxious about dealing with money, even if your financial situation is now stable or there’s no immediate risk.”

DEEP IN DEBT

A BUSY Scots mum who found herself nearly £15,000 in credit card debt has revealed how she realised she was suffering from money dysmorphia.

Amy, from Clydebank, near Glasgow, says she hit a low point when she couldn’t even afford to get a vital piece of dental work.

The careers advisor, 35, says she realised she had a problem when she couldn’t afford to get a bit of dental work done that she really wanted.

Amy, mum to two girls, eight and six, told how she started getting on top of her finances last year after slashing her food bill and making other changes.

She said: “I had gone back to uni and did a postgrad in careers guidance so once I got into that professional job I was like ‘I should be able to afford this and that’. I’d just buy things and say I’d worry about it later.

“The reality was one of my teeth crumbled