Seeing your finances clearly: Money dysmorphia

If your bank balance says one thing but your brain says another, you might be dealing with money dysmorphia. Whether you feel worse off than you are or more comfortable than you should, rising prices and constant comparisons can distort how we see our finances.

What is money dysmorphia?

Money dysmorphia is a growing trend and it’s all about perception. It happens when how you feel about your finances doesn’t match what’s actually going on.

You might be earning a decent salary, paying your bills and even saving a bit, but still feel like you’re constantly behind. Or it can work the other way – you might feel comfortable and spend freely, only to realise later that your balance isn’t keeping up. Either way, it’s a disconnect between your financial reality and your mindset.

Some people avoid spending even when they can afford to because they feel anxious about money running out. Others spend more freely, assuming everything is fine, then panic when their balance reduces faster than expected.

It’s not about being good or bad with money – it’s about how tricky it is to judge where you really stand when the world around you keeps sending mixed signals.

So, why does it happen?

Even with a steady income, it can feel like your money doesn’t stretch as far as it should. You might be trying to save for something important – like a deposit, a car or even just a bit of breathing space – but end up wondering where your salary’s actually going.

When everything seems more expensive and everyone else looks like they’re doing better, it’s no wonder you start second-guessing your own financial situation.

There are a few reasons why money dysmorphia is common right now, especially for people just starting out in their careers.

• The cost of living is everywhere

Rent, groceries, fuel, bills – everything’s gone up. When the news is full of rising prices and financial pressure, it’s easy to feel like you’re on the edge, even if your income is solid.

• Social media doesn’t help

Seeing friends or strangers posting about new cars, holidays, house deposits or designer buys can make you feel like you’re not keeping up, even though you have no idea what’s happening behind the scenes.

• It’s all new

If you've never had a full-time salary before, there's a lot to get your head around. Payslips, tax, student loan deductions, pension contributions – it's a lot. When you don't have much to compare yourself to, it's easy to feel like you're getting it wrong.

How to take back control of your finances

If any of this sounds familiar, the good news is there are some really simple ways to cut through the noise and feel more in control:

• Figure out your real income

What is your annual salary? It’s not what you’ll actually get in your bank account. Tax, national insurance, pensions and student loan repayments all come off first, so take a few minutes to understand what you’re really earning and break it down into what you’ll take home each month.

• Track where your money goes

It doesn’t have to be fancy. Use a notebook or your banking app to keep tabs for a few weeks. You might find you’re spending less than you think or spot some easy wins.

• Build a basic budget

Try splitting your income into three rough areas: essentials (like rent, food and bills), extras (fun stuff like nights out or clothes) and savings (even small amounts count). You don’t need to follow it perfectly – just knowing your limits helps massively.

• Set up a safety net

Try saving £25 to £50 a month to build up a bit of breathing space. Having even a few hundred pounds set aside for emergencies can take a huge weight off your mind.

You might be doing better than you realise

If you’ve just started working or you’re about to, it can feel like you’re on the back foot with money. Maybe you’re not saving much yet or you haven’t looked into things like pensions or investments. That’s completely normal. The truth is, you’ve already taken a big step just by starting your career and earning a regular income.

While you might not have a huge savings pot yet, don’t overlook what you’re already putting in place:

• You’ve got money coming in every month
• You might already be paying into a pension through your employer
• You’re building financial habits that will serve you well in the years ahead

Even small steps, like keeping an eye on your spending or putting a bit aside each month, make a difference. It might not feel like much now, but over time it adds up. What you’re doing might not seem exciting, but it’s a smart way to build financial confidence.

Take the next step

If you want a clearer view of your finances, our free Financial Survival Guide is a great place to start.

It’s designed for dentists and doctors starting work this August and includes tips on reading your payslip, budgeting basics and building confidence with your money.