How can sleep deprivation negatively impact personal finances?

According to several studies, one in three Americans are sleep deprived. This impacts our physical and mental health and has a substantial financial impact. 

When we are tired, we tend to make poor decisions — it’s human nature. A lack of sleep is proven to turn usually responsible people into poor financial decision-makers. Whether it is impulse purchases, poor financial decision-making, or a lack of focus when taking on financial tasks - these errors can lead to costly financial mistakes. 

In addition, sleep deprivation takes a toll on us physically. This leads to a less productive work day. Rand's study showed that a lack of sleep contributes to over $400 billion in lost productivity in the U.S. annually — which is the most in the world. 

Lack of sleep can also lead to chronic health conditions — higher insurance premiums, co-pays and deductibles.