You may not realize it, but your choice to commit to an expensive annual gym membership or to take on a $500 monthly car payment for a new vehicle could be tied to one factor: not getting enough sleep! While other influences affect decision-making, sleep is high on the list. After all, there’s a reason we say “sleep on it”—getting enough sleep provides the mental reset and sharpness needed for sound decisions and good judgment, especially when it comes to high-cost commitments. In this context, “cost” carries both financial and symbolic significance.
Quality sleep enhances decision-making and cognitive function, leading to better financial choices and outcomes. For example, imagine you went to bed at 2 AM after a long night and then had to wake up for an important work meeting at 7 AM, leaving you with less than five hours of sleep. As you arrive at the meeting, you notice you’re not as sharp and are forgetting crucial details. When the discussion turns serious, you struggle to remember what’s at stake and what you aim to achieve from the meeting. Half an hour later, the meeting ends, and you’re just relieved it’s over. You move on with your day, but days later, as you review some documents, you realize that what you agreed to in that meeting is far from ideal or what you would have typically asked for. What happened? Why are you now clear on what you need but weren’t during that meeting? The simple answer is a lack of sleep, which deprived you of your best judgment and decision-making ability.
Now think about your daily life and how, every time you don’t get enough sleep, you may be setting yourself up for overspending, poor financial choices, or simply making the wrong decisions about routine matters. Taking this further, your current financial situation—whether good or bad—may reflect years or even decades of poor decisions influenced by a lack of quality sleep. This may sound like hyperbole and doesn’t take into account other factors, and while that may be true, sleep is a big part of it. You may not notice it at the time, but it is easy to mess up the simplest of decisions when you are not fully rested from a good night sleep. So next time you know you have an important decision to make, like a buying a new car, house, or an important work meeting, get enough sleep. Min of 7 hours is recommended, but 8 would be even better. That extra hour or two may end up paying off for a long time to come. And the opposite is also true.
Don’t let sleep deprivation be the difference between a future of wealth and abundance and one burdened by debt, financial stress, and missed opportunities. Make quality sleep a priority, giving yourself the clarity and mental resilience needed for sound decision-making. Remember, every hour of rest can be an investment in your financial well-being and peace of mind.