Good sleep can help you in so many ways. Few people even know that one can boost their finances while they sleep.
Impaired Cognitive Functioning
Did you ever try solving a simple math problem when you are exhausted? Whether or not it is a problem on addition, subtraction, multiplication, division, percentages, and other simple mathematical problems, it will be remarkably hard if you are deprived of your sleep. The reason for this, which most people know, is that sleep deprivation will really impair the cognitive functioning of your brain.
In fact, several researchers even found out that a single night of deprived sleep will increase the concentration of the NSE and S-100B molecules. These molecules are the ones responsible for the increase in brains after a person experiences a blow to the head.
Even though you are not behind the wheel when you feel exhausted, your wallet can still be affected by the cognitive impairment caused by sleep deprivation. There will always be a moment wherein you will overpay at a food stall or restaurant. You will also experience a blow on your grocery budget because you were not able to tally the purchases you have made. Another bad thing that would happen is that you will overdraw your check account because you forgot about the charges coming your way.
There will be instances where you would probably notice that it is pretty much hard to get anything and accomplish it at the end of the week, even if you know that you have enjoyed the perfect night’s sleep before the day starts. What you are experiencing is the so-called decision fatigue. The human brain only has a limited bandwidth in making certain decisions. After you have made several small decisions throughout the day, these small decisions will be accumulated by your brain and you are normally left with a lesser mental energy to decide of big choices.
This so-called decision fatigue can be at its worst when you are tired, thus, coming to the term fatigue. Decision fatigue which is fueled by insomnia or lack of sleep will also result to the reduction of your ability to make good and bad trade-offs. The decreased ability of making trade-offs will only lead you to making bad financial decisions because of the fact that you are more vulnerable by that time.
There will come a time that you will sometimes feel irritable because of a bad night’s sleep, but your brain will not normally agree. A study made by the Duke University found that most people who lack sleep are more prone to experience unwarranted optimism. To be more precise, the lack of sleep gives your brain the experience of being burnout or sometimes primed in chasing rewards instead of avoiding losses. This is primarily called as “optimism bias.”
The Duke University study asked numerous participants to engage in numerous economic decision-making tasks. The study was done after a regular night’s sleep of the participant at the same time, after the lack of sleep. After sleepless nights, most of the participant made decisions as if it were a positive consequence. The participant also viewed the consequences which are in the negative as less of a risk.
Optimism bias is normally seen in casinos since this environment would tend to keep the gambles unaware their fatigue at the same time awake as hell. Instead of determining the consequences, they will keep on chasing the winnings instead as if they will reach it.
Let’s just bear in mind that gamblers are not the only ones affected by optimism bias. Every person who is chasing investments and changing their careers can be affected by it. Make sure not to make a wrong decision for you to avoid devastating effects.