Savers may ‘never feel secure’ as psychologist highlights little-known finance disorder.
A warning has been issued to savers as a psychologist sheds light on a little-known financial disorder that could prevent individuals from feeling secure. While saving money is generally regarded as a positive financial habit, for some, it can lead to a downward spiral caused by Disorder Money Behaviours (DMB).
DMB can manifest in various ways, akin to more widely recognized disorders, such as eating disorders. It operates along a spectrum, with one end showcasing reckless spending behaviours and the other end portraying excessive saving tendencies, leading to financial hoarding. The extreme form of this disorder, described in the Journal of Financial Therapy, is characterised by a ‘miserly spending style’, where money is seen as something to hoard for future emergencies.
According to Chartered Psychologist Dr Mark Rackley, a person’s attitude towards money is often shaped during childhood. Those raised in affluent households where money is abundant may struggle to assign value to money and have a propensity to spend without much deliberation. Conversely, individuals brought up in financially insecure environments may develop an irrational fear of not having enough money, driving them to save excessively as a means of feeling secure.
Dr Rackley emphasised the importance of establishing a healthy relationship with money to transition from an unhealthy mindset to a more balanced one. Recognizing and addressing Disordered Money Behaviours is crucial, as individuals who engage in financial hoarding may compromise their well-being by sacrificing necessities and experiences in favour of accumulating savings, leading to feelings of unhappiness and isolation.
Efforts to tackle hoarding disorders within the realm of financial therapy are steadily increasing, offering hope for individuals grappling with the detrimental effects of this little-known psychological condition. It is essential for those affected to seek support and guidance to overcome these challenges and foster a healthier relationship with money.