Have you ever been overwhelmed by a decision and just chosen to do nothing to avoid making a bad call? This happens to a lot of people, even with money, and the cost can add up quickly if you don't take steps to overcome it.
Shavon Roman is a personal finance expert. She says financial dysmorphia is more than just a term.
"The fear of spending money is how I would describe it."
Roman says it can affect people in different ways, but the impact is typically similar: a massive loss in net worth that snowballs over time.
As for how it starts, Roman says, in her experience, many people struggle with money dysmorphia after experiencing financial trauma, which can be passed down through generations. "Thinking about your decision-making with money impacting your grandchildren is really powerful," Roman said.
To overcome it, she suggests prioritizing investing in your future and your family's. "If you have money assets just sitting places for years, you may wanna consider really pushing a little further and making a decision."
That can be hard to do, especially with worries about making the wrong choice drowning out the ability to think logically.
"The first piece is financial education."
That means talking to an expert, or someone in your life who you trust. Roman says it's important to remember that there are lots of low-risk options to consider, like CD accounts and high-yield savings programs.
"There are so many other financial vehicles besides dumping a ton of money in the stock market," Roman said, emphasizing that it's perfectly fine to look at conservative ways to make the most of your savings.
The bottom line, Roman says, is that you need to remember that not making a decision is a decision in and of itself that you'll likely regret down the road. "The impact can be millions of dollars," Roman said, urging Americans to stop hiding cash around their homes and make an educated financial decision instead.
