Massive
financial burden usually leads to lack of sleep, but did you know that
sleep deprivation actually triggers greater financial problem? People
are more accustomed to the idea that lack of sleep is normally a result
of financial problems and difficulties. However, recent studies show
that sleep deprivation can also lead to greater economic difficulties
and the cycle continues.
According
to research, chronic lack of sleep substantially affects the quality of
decisions which people make. Due to certain activities in the brain,
sleep deprived individuals are very likely to produce decisions which
can later lead them to greater financial difficulties.
Today,
there are lots of scientific researches confirming the links between
sleep deprivation and lack of judgment and poor attention, learning and
memory. There were only few researches which have verified the
connection between lack of sleep and debt. This article will shed light
on the clear connection between the debt making behaviours of people and
their inability to obtain adequate amount of high quality sleep.
In
one study, it was concluded that sleep deprivation significantly
influences the quality of decisions of many people. The study involved a
gambling task to determine the effects of lack of sleep. The
researchers claimed that sleep deprived individuals are more likely to
make unsafe decisions, and they are more inclined to prefer high reward
choices in spite of their low probabilities. The participants of the
said study would prefer the very slight chance of winning large amounts
of money than choosing the same option to prevent losses.
Due to
chronic lack of sleep, the prefrontal cortex area of the brain tends to
suffer. This leads to the difficulty with attention, judgment and
decision making. These qualities are said to be important in making
rational decisions in managing your money.
This is a very simple
explanation on why people who gambles in casinos are very likely to make
debts. Gambling in a well-lit and bright place keeps gamblers awake all
night long. However, as hours pass by, the effects of lack of sleep
begins to sink in and gamblers begin making irrational financial and
economic decisions.
In a study involving 29 individuals, the
participants were asked to gamble after getting a good night sleep. A
week later, they were asked to gamble again after having been deprived
from sleep for a night. The results significantly varied.
During
the first session where gamblers were able to obtain adequate amount of
high quality sleep, the participants have shown deep concerns about
protecting their money and minimizing their losses. The first gambling
session took place at 8 in the morning after the participants have slept
all night.
On
the other hand, the second gambling session took place at 6 in the
morning following a night of wakefulness. The scientists have noticed
that the participants made very risky approaches without considering the
impacts of their actions and decisions. They have actually elicited the
phenomenon known as the “optimism bias”. It is a condition where
individuals have a greater faith that positive outcomes are more likely
to prevail. The possibility of losing money is not very unlikely but it
is not as harmful as it seems.
Research shows that people who get a
high quality of sleep at night are more likely to produce better
decisions but are less likely to create losses and debt. A certain
region in the brain known as the anterior insula is activated to reduce
its losses in whatever undertaking.
On the other hand, for sleep
deprived individuals, the ventromedial prefrontal cortex region of the
brain is activated. This region is directly linked with the gain-seeking
behaviour of some people. The activation of this area of the brain is
also responsible for increased risk taking behaviour of people. When
this region is activated, people are more likely to engage in certain
risky activities without taking considering the risks involved. When
people are sleep-deprived they are very likely to become attracted to
the idea of winning without caring much about their losses.
In a
scientific study conducted at the Duke University, the researchers have
concluded that sleep deprivation creates a significant impact on the
economic decisions of individuals. The participants of the said study
were asked to perform several financial undertakings in the morning
first, after they have taken a good night sleep, then after they have
sleep deprived.
Using the MRI scan, the researchers were able to
identify the effects of lack of sleep on the decision making of some
individuals through the mechanisms of how the brain works. According to
the results of the MRI, people who are sleep deprived have an active
portion of the brain which anticipates optimistic results. On the other
hand, there was a decreased activity in the region of the brain where
negative outcomes are anticipated. This simply means that a sleep
deprived individual may think that a risky decision is not as risky as
it really seems. This triggers him to get involved in some risky
choices.
With the scenario presented above, it can be concluded
that the cycle of debt and sleep deprivation resembles the cycle of egg
and chicken situation. It is not actually a question of which started
which. The more important thing is, you should find immediate, long term
and effective solutions to your problem now as it can lead to more
serious financial situation if left uncontrolled. Better do something
about your financial problem now, as debt has already begun making a
toll to your mental, emotional, social and physical health.