When your financial situation is stable but you worry anyway

Money dysmorphia can lead one to make poor decisions, leading to negative results

- Prisca Ang

I've never considered myself a worrywart, but in recent months I have been unable to shake off the fear that I simply do not have enough in my bank account.

The thought of upcoming renovation expenses, coupled with the realisation that I'll need at least $1 million more to meet my eventual retirement needs, is anxiety-inducing at times.

This comes even though I've been saving and investing regularly, and putting a lid on my monthly spending.

Of course, it's necessary to plan for the future and consider our various financial commitments. But is there such a thing as worrying too much about money?

The internet loves to coin new terms for age-old situations, and one of the latest that has surfaced in personal finance discussions is "money dysmorphia" - where someone is insecure about his financial situation even if it is stable.

Mr Jeffrey Yap, head of investments and wealth solutions for South-east Asia at HSBC Global Private Banking and Wealth, said there is generally a perception among individuals that their financial conditions are not ideal. "They wonder, 'Do I earn enough, do I save enough, do I invest enough to meet my consumption and retirement needs, or to be financially secure?'"

Ms Tan Siew Lee, head of group wealth management at OCBC, said individuals might feel financially insecure if they grew up in a background where scarcity was prevalent, for example.

"Having high levels of debt, such as (personal) loans, or a looming big purchase like a home renovation may also feel overwhelming, especially if one is living beyond their means to keep up with the lifestyle of their peers," she said.

Money dysmorphia might lead us to make poor financial decisions, said Mr Yap. "If you haven't properly planned your finances, up to a stage where you feel there's a big gap, then you'll tend to go for risky investments.