Can better sleep keep you from money missteps? Save these tips for a good night’s rest
Getting enough sleep is important for our physical and mental health. But it’s also key for our finances: Not getting enough sleep can result in poor or risky financial decisions.
As many as 70 million Americans are dealing with sleep disorders. So if you can’t sleep and find yourself adding things you don’t really need to your Amazon lists at 2 a.m., The Sum tells you what you should know.
TO SUM IT UP
- 56% of Americans suffer from pandemic-induced sleep disorders, according to a survey by the American Academy of Sleep Medicine.
- Sleep deprivation leads to impulsiveness, bad decision-making and an increase in risky behavior, even in finances.
- One 2020 study found that stock-market returns are lower on days when traders are short on sleep.
THE BACKGROUND
- Research on the science of sleep shows a direct line between not getting enough rest and making poor decisions.
- Anxiety, like the stress brought on by heavy news cycles or money troubles, can lead to less sleep.
- In turn, the unrested rely less on evidence to make decisions, leading to poor choices and risky or validation-seeking behavior.
SOME SLEEP TIPS
- Cut off entertainment early.
- Try meditation and natural products, like melatonin.
- Stop eating an hour or more before bedtime.
- Use good hygiene and regularly clean sheets, pillowcases.
WHY IT MATTERS
- As many as 70 million Americans have sleep disorders, which can lead to health issues such as weight gain, acne and memory loss.
- Plus, more sleep might help your bottom-line: A 2015 study found that a statistically average worker who increased their sleep by one hour a night could see their wages increase by $6,000 in a year.
SOURCES
- The Hill: Sleeping less than nine hours could affect kids’ memory and mental health
- Williams College, Dept. of Economics: Time Use and Productivity: The Wage Returns to Sleep
- Washington State University: Research shows sleep loss impedes decision making in crisis
- National Library of Medicine: Effects of Total and Partial Sleep Deprivation on Reflection Impulsivity and Risk-Taking in Deliberative Decision-Making
- National Library of Medicine: The Sleep-Deprived Human Brain
- The Conversation: Sleep-deprived financial traders make lower stock market returns – new research
- U.S. News: U.S. News & World Report Sleep Quality Survey 2022
- Washingtonian: Covid, Inflation, Politics—They’re All Affecting Your Sleep. Here’s How to Snooze More Soundly.
- CNET: Beauty Sleep Is Real. Try These Tips to Sleep Your Way to Youth
READ MORE ABOUT THIS IN THE SUM
The Sum breaks down complex economic issues and how they impact your life in just a few minutes a day. Follow thesum.news on Instagram for the full story.
This story was originally published September 7, 2022 at 6:02 PM with the headline "Can better sleep keep you from money missteps? Save these tips for a good night’s rest."
The Sum
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