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

What is Money Dysmorphia and How to Overcome it?

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.


Disclaimer

These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products.

Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance.

Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries.

The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.

Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.

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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.

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