More money, more problems is how the saying goes, but did you know the way you view money could also cause trouble to your mental health and could be a sign of money dysmorphia?
You’ve probably heard of body dysmorphia and its effects, but money dysmorphia is a distorted view of money that could cause you to make poor financial decisions, according to Jeff McDermott, a financial advisor with Create Wealth.
He says the concept of money dysmorphia is pretty much the same as body dysmorphia but instead involves cash flow.
“You look in the mirror and you see somebody different from the person that is really there. You may be doing well and have trouble feeling financially secure or you may be less secure than where you really are, and doing things that don’t line up with where you currently are on your financial journey,” McDermott said.
Statistics show that 52% of Americans said they stress about money and said it hurts their mental health. Another 30% said they worry about money daily.
The pressure to spend during the holiday season also adds to that stress.
“You’ve got to buy a Thanksgiving dinner. You’ve got holiday gifts. Think about ways that you could give yourself guardrails, set a budget,” McDermott said.
Nearly 1 in 4 people feel financially burdened by the holidays, according to Bankrate.com.
McDermott suggests taking it a step further and beginning to budget for future milestones in life.
“Think about what your goals are. Again, maybe you want to buy a house in a couple of years. You have kids to send to college in 10 years and do that preplanning, do the math,” McDermott said. “Do I need to save monthly annually, and get that on autopilot so it doesn’t have to be a conscious decision to go in there and save. Be realistic with yourself. If you could only save 3-4% of your income right now, that’s something. That’s a start.”