Research has uncovered that those raking in more than £100,000 annually, especially self-made earners, are most prone to ‘money dysmorphia’ – a condition causing well-off people to feel and act as though they’re financially destitute.
According to a study by Redfield & Wilton Strategies, nearly one in four Brits are grappling with this syndrome, considering themselves “working class” despite their six-figure paychecks.
Although not officially recognised by psychologists as a diagnosis just yet, experts suggest the roots of this phenomenon lie in childhood financial environments, which could differ drastically from one’s current wealth.
US financial therapist Maggie Baker recounted to the Financial Times her dealings with money dysmorphic clients, including multimillionaires who refuse the cost of health insurance.
She said: “These patterns are so deeply set that even the most rational argument is not going to move somebody.”
Professor Lee Elliot Major, a social mobility expert from Exeter University, stumbled upon this behaviour while studying how people move up and down the class ladder. As someone who’s climbed to middle-class status himself, he’s not immune to these worries either.
Recounting his earlier days, he said: “In my early life, there were times I really had to watch the money. Even though your economic situation changes, your attitude doesn’t. You never quite lose the memory of worrying about how you will find the cash to get through the next week.”
Today’s youth are also in the danger zone, as they’re bombarded with images of peers in very different financial boats. This can trigger stress, especially when we’re all so buttoned-up about our bank balances.
To add to it, financial worry tops the chart for anxiety causes in the UK, mental health charities warn.
Psychologist Baker suggests taking a hard look at the mental toll your money management takes compared to your actual balance sheet.
She suggested taking this litmus test; measure the amount of attention you give your finance, how much psychological distress it causes you against the actual figures behind it. People with money dysmorphia will also have high levels for the first two questions while finding it’s not proportionate to the reality of their finances.
The dysmorphia can lead to a variety of negative impacts, from limiting your life’s pleasures to neglecting essentials, Professor Major cautioned that in severe cases some individuals might make drastic choices such as deciding not to start a family due to the distorted perception of their financial situation.
