Sleep deprivation can have some of the same physical and cognitive impacts as being drunk — and I’d take a good guess that you’re not sleeping well most of the time, right? Here’s why this can be very dangerous to your wealth and financial stability.
In today’s episode of Your Money Minute with Tracy Stewart, CPA, I want to talk about how losing sleep can cost you money. Acute sleep deprivation is going without sleep over a 24-48 hour period, which can have drastic effects on how you process information, make decisions and react to the world around you. Most Americans manage with a chronic shortage of sleep, and it’s scary how this can impact you as you make decisions about your money.
Let’s look at a common scenario: You’re strolling through the grocery store, sleep-deprived and looking like a zombie, when you stumbled upon the impulse section while checking out. The sleep-deprived you is more likely to pick up a couple of magazines and a chocolate bar – despite knowing how bad this is for your waistline and wallet.
But lack of sleep can be even more harmful on your finances. Think about going in to negotiating the purchase of a new car or home. If you’re tired, you may be less sharp in conversations, less likely to explore and think through options, and less productive in financial negotiations. You can’t afford to lose sleep!
Most people need between 7-9 hours of sleep, but do know this is highly individualized. If sleeping continuously for that amount of time is not possible with your schedule or sleep routine, you can also try napping (but no more than 20-30 minutes at a time, otherwise you’ll be even more sleepy than when you started.) Make time to rest – it’s good for your body and your bank account.
Financial independence is unbelievably liberating. By getting plenty of sleep, you will be prepared, physically and mentally, to make solid decisions about every penny you save and spend.
Remember: You can subscribe to my YouTube channel for even more practical advice on making the most of your money and life in the next episode of Your Money Minute.