What is Money Dysmorphia and How to Overcome it? September 4, 2025

Money dysmorphia happens when the way you feel about your finances doesn’t match the reality of your situation. It’s not simply the occasional anxiety we all experience about money; it’s a persistent, distorted perception that can affect how you live, spend, and save.
You might have a steady income, healthy savings, and no debt, yet still feel as though you’re financially insecure or “behind” compared to others. Over time, this mindset can lead to spending (or saving) habits that aren’t in your best interest.
What Are the Common Symptoms of Money Dysmorphia?
A leading cause of money dysmorphia is social comparison, particularly online, which makes you question your success even when you are doing well. Here are some common signs that you may have money dysmorphia:
- Repeatedly thinking that you do not have enough money
- Stressing out over small things despite having sufficient funds
- Unendingly comparing your earnings/savings with others
- Avoiding checking your bank account due to fear
- Always imagining worst-case financial scenarios
- Worrying about money when you don’t need to
- Continuously seeking more ways to increase income
- Avoiding shopping or making purchases altogether
- Experiencing intense shame or guilt after buying anything
- Frequently maxing out the limit of your credit cards
How to Overcome Money Dysmorphia?
Research shows that 41% of millennials and 43% of Gen Z currently experience money dysmorphia. While there is no way to entirely prevent this insecurity and dysmorphia , here are the tips you can follow to overcome money dysmorphia:
1. Review and Track Your Budget
Understanding your financial situation is one of the best ways to overcome money dysmorphia. Track your income, expenses, savings, and goals. Once you look at the numbers clearly, it’s simpler to ground your emotions in facts.
You can do this through a simple spreadsheet or budgeting apps. The more often you check in, the more you’ll feel like you’re taking control.
2. Reframe Your Perceptions about Money
Your financial objectives should be shaped by your personal objectives. Not by social media or peer comparisons. Reflect on your actual circumstances and the root of your discomfort.
Not being content with your current financial situation is justifiable. However, if you are consistently saving, on track with your obligations, and able to treat yourself occasionally, your fears may not be justified.
3. Make Smart Financial Choices
Don’t let fear or external pressure influence your financial decisions. Take time to plan, learn, and know where your money is heading. It’s okay to spend and to save but ensure that your decisions are influenced by your goals and not anxiety.
Make Your Money Work for You with SMART Park
Another practical way to overcome money dysmorphia is to invest your money for growth. This is where PhilipCapital SMART Park can help. As an Excess Funds Management Facility that automatically invests your idle cash into money market funds, SMART Park avails the following key benefits:
- No lock-in period
- No admininstration fee
- No sales charge
- Easy online transfer and withdrawal
Learn more about SMART Park here
Conclusion
Money dysmorphia can cloud your judgment and hold you back from enjoying the financial stability you’ve worked hard for. You can overcome it by tracking your budget and changing your perceptions, aligning your financial reality with your perception.
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About the author
Debbie Liew
Digital Marketing Executive
Debbie is currently with Phillip Digital Channel, specialising in promoting financial solutions such as Excess Fund Facility (SMART Park), Robo (SMART Portfolio), Finance Fit and Phillip Protect. Passionate about both digital marketing and finance, Debbie is dedicated to creating engaging content that benefits investors.