Society. “I check my account every day”: financial dysmorphia, the fear of running out of money

Just as body dysmorphia gives a distorted perception of one's physical appearance, financial dysmorphia is a psychological condition in which one does not rationally assess one's financial situation: generally, one feels poorer than one actually is.

The expression, which emerged in 2024 in the United States, could concern many French people, given that 76% of them express a negative perception of their purchasing power, even when this is not justified (*). "Financial dysmorphia is not yet a recognized concept and it is not at all the subject of academic research," points out Mickaël Mangot, an economist specializing in behavioral finance and happiness economics. "It's a sort of variant of financial anxiety. It's consistent with what we've already seen in other disciplines under different names."

“ I sometimes limit myself in my purchases .”

Kevin, 29, runs a small company in Meylan, Isère, and seems to be displaying the "symptoms": "My company has a positive cash flow of around half a million euros. Yet, I only pay myself 2,000 euros per month, which is more than enough to cover my needs as a single man living in a studio, with a modest rent of 490 euros per month. However, I sometimes restrict myself in my pleasure or food purchases, for fear of not making it to the end of the month, when in the worst case scenario, I could simply pay myself a higher salary the following month."

Beyond this self-imposed belt-tightening, this situation causes anxiety in Kevin, which manifests itself in a mania close to OCD (obsessive compulsive disorder): "I check my bank account every day via my online application, with the movements updated in real time. This 'reflex' has also extended to my professional activity, where I monitor the company's bank accounts daily." He explains this anxiety by "a difficult past" and "a French economic context that doesn't help."

"We know that people have difficulty finding their place in the income distribution," explains Mickaël Mangot. "We position ourselves absolutely, by wanting to earn more, but also relatively, by comparing ourselves to others. Many people believe they are lower than they are on the social ladder. We are riddled with biases, and our brains do not operate rationally in their perceptions."

And according to the economist, these biases come from many sources: "There are conversations with people, who tend to put on a good face and avoid talking about their financial problems. There are also the media, especially television. We know that the more people watch it, the poorer they feel because the wealthy are overrepresented." A problem that is therefore not specific to our time or to younger generations, even if the situation "has worsened with social networks," acknowledges Mickaël Mangot. For him, young people feel more concerned because they are objectively more in precarious situations (fixed-term contracts, rentals, etc.) and financially insecure due to a lack of accumulated savings.

Cash savings limit anxiety

This financial anxiety can profoundly affect mental health . "What determines well-being is much more your perceived situation than your actual situation," reminds the happiness economist.

Having said that and being aware of these biases, what can we do to reduce this anxiety? "What limits it is building up a liquid emergency savings fund, which can be used very quickly, of around three to six months' salary," advises Mickaël Mangot. "Illiquid investments like real estate and stocks don't do much to reduce financial anxiety."

The economist also recommends using apps for budgeting. "When you're anxious, you need control, so you need to put procedures in place to regain a sense of control." Second, Mickaël Mangot recommends setting up a regular savings plan by opening a securities account or a PEA (share savings plan), then automatically paying into it each month a sum (for example, €100-150) earmarked for a well-diversified financial product. "Having a plan in place, sticking to it scrupulously, and seeing your savings gradually increase fuels the feeling of control."

(*) OpinionWay survey, August 2024.