Does Being Sleep-Deprived Make Us Irrationally Optimistic About Money?

We make hundreds, even thousands of decisions every day. Some are easy (like what to have for breakfast, or what to wear to work), while some are much harder (like how to spend money or educate our children). We know that without a good night's sleep, making those tough decisions is even more difficult, though everyone from business executives to politicians often makes important decisions on too little sleep.

The one place we really should try to make sure we have a good night's sleep before we make any decisions is Las Vegas -- or any casino, for that matter. A new study suggests that beyond leading to poor decision making, sleep deprivation actually makes us more optimistic in our judgments, particularly those about money. Researchers at Duke University studied healthy volunteers as they underwent functional magnetic resonance imaging (fMRI) and found that the less the participants slept, the more likely they were to focus on potential gains and ignore potential risks.

It isn't that we're just too tired to make the right choice; sleep deprivation actually changes the way that our brains process information. Lack of sleep makes us:

• More sensitive to positive outcomes
• More likely to pay attention to the upside
• Less aware of possible negative outcomes, making it easy to ignore the possibility of losing

This could be why when people stay up all night playing cards and gambling, they take crazy risks that they shouldn't take, and maybe wouldn't take if they were well rested! This could also hold true for people staying up all night on online gaming sites: the later you stay up, the more focused you become on the possibility of winning big (and less focused on the possibility of losing big). It also explains why casinos often have flashing lights, free alcohol, and late hours -- they are all designed to make you stay longer and as you become more and more sleep deprived, make bigger and riskier gambles.

Trying to make important decisions without a good night's sleep could lead to many problems:

• Bad mood, which can lead to poorer decisions and even worse mood
• An inability to think clearly and rationally
• Abuse of caffeine
• Preference for a decision that looks like it will lead to financial gains, no matter how risky it may be

This optimism in judgment is not limited to money; the researchers in the study write that doctors and medical residents who work long hours are more likely to make mistakes, and it's easy to see how making decisions that look positive despite the risks could be problematic for lawyers, bankers and those in the military. The truth is that no good decision can be made by anyone with that much sleep deprivation.

Do you consider how much sleep you've gotten before you make important decisions? Having a clear and well-rested head is important for any big budgeting decision you make -- and for those trips to Vegas. Want to avoid losing it all? Try resting up before you place your bet or make that big decision. Get the rest you need and make sure your optimism is well founded.

Sweet dreams,
Michael J. Breus, Ph.D.
The Sleep Doctor™
"Everything you do, you do better with a good night's sleep"™

Twitter: @thesleepdoctor
Facebook: www.facebook.com/thesleepdoctor

 

 

 

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Comments

[ken derow]

04:35 AM on 04/15/2011

Sleep deprivation may make us less rational about money, but, a deprivation of compassion, will make us poorer people in ways much more fundamental than money or material possessions. The creation of compassion, and, the transference of compassion by the creator to those we love and care for, is fundamental and elemental in making our lives better and more fulfilling. Compassion, and the correlates of love associated with it, bring to those who create or receive this compassion better health, better well-being, better self-esteem, and, even better longevity. Compassion is fundamental and basic to having a good life and a better existence in a way that mere money or possessions could never be. Those who seek, find and convey compassion to others will reap the bounty that it naturally provides, and, this occurs without any ill effects, or unintended consequences, for themselves or for those who receive the compassion. Compassion is truly a win-win situation in the most meaningful sense of the word.

[Jokergirl]

08:34 PM on 04/14/2011

Probably if you're out on an all night bar hopping bender and you see that new BMW you've been wanting to buy and you put down a down payment... Seriously though I find it strange that lack of sleep would lead to paying more attention to the negative outcomes, not positive ones.

[french queen13]

07:50 PM on 04/14/2011

How very peculiar! For me, lack of sleep isn't associated with partying, socialising or anything of the sort, which is what I'd think of as playing a part in the "high" that seems to be described in these findings. My lack of sleep comes from either not being able to nod off the night before (for no obvious reason, usually) and lasts just one day, because the next night I'll get to bed earlier and sleep more. At other times it comes from stress, and that most certainly doesn't feature thinking about positive things or taking risks - and the stress is most likely to be about money matters, since I am on a low income and am not looking forward to life on the pension!

[yatinjpatel]

06:11 PM on 04/14/2011

Nice article, Dr Breus. I just recently became aware of your excellent work in raising sleep awareness nationally. Thank you and best wishes. Keep up the good work.
PS Just wanted to mention that this risk taking behavior gets more complicated because of our poor self-assessment ability, impaired working memory, and inaccurate memory recall just to name a few.

[Scholastica8]

12:21 PM on 04/14/2011

I happen to work in a field with a lot of sleep deprivation... 15-18 hour work days + commute, don't leave much time for anything else, including sleep.

What happened to me was not optimism. It was more like pessimistic rage.... deep anger.... It's still the same.... never optimisim... but more like getting through day after day & wading through molasses as do it. Sometimes fighting off the desire at 4am to slam the car into a light post. Then I'd be able to sleep... forever... & it would be assumed that I'd fallen asleep at the wheel.

Maybe when one is tested in sleep labs one gets silly & optimistic, but believe me, not in real life. In real life one becomes dangerous in more ways than one.

[yatinjpatel]

06:06 PM on 04/14/2011

I can identify with this as I have done 36+ hours of ER/ICU calls for 20 years! The rage happens unfortunately because of our overstimulated Amygdala (the fear center.) You can try power naps, meditation, and prayers. You can seek support from friends and family. You must read about drowsy driving precautions at http://sleepwellleadwell.com/2011/03/05/how-not-to-fall-asleep-driving/
God bless you.

[dwneastchk]

08:39 AM on 04/15/2011

It it's true that underneath every disappointment is something left 'unsaid', I must say stop thinking about the light pole solution, man! Permanent solution to temporary problem etc etc...
Find a new job doing something you love, work more at home if possible, or maybe move closer to work - something. Life is truly not a dress rehearsal!

There are surprisingly simple ways to promote and improve your sleep that I hope you will educate yourself about and experiment. A lot of it is biological/hormonal and some is environmental/sensory. Unrelieved 'stress' and poor diet doesn't help either. Make a doctor's appointment and ask specifically for a 'sleep study to determine if anything specific might be interfering like apnea ie snoring/interrupted breathing. You might be surprised.

I'm empathetic...

[jdevans]

11:50 AM on 04/14/2011

Lack of sleep may or may not cost us money, but lack of money certainly costs us sleep.

[french queen13]

07:51 PM on 04/14/2011

That's so true!

[frank day]

03:31 PM on 04/17/2011

bingo