Want Better Sleep? Start with Your Spending Habits

How serene do you feel after a period of splendid slumber? And how ghoulish do you become after just a night or two of disturbed dozing?

We all know what it feels like to run on fumes for too long. It’s the brain fog, the irritability, the sense that everything takes twice the effort. That lingering exhaustion has a name:

Sleep debt. It’s a thing.

I hear you! You’re thinking: oh great, another way to feel bad about myself. Same. But there’s something hidden beneath: An opportunity, perhaps, for some gentle self-inquiry about our routines for rest.

You see, sleep debt is an emerging concept in the world of wellness. Perhaps it’s the tiredness you’ve felt for ages, but it now has a snappy name. Maybe you feel trapped in a cycle of exhaustion that’s holding you back.

And of course, I work at YNAB, so anytime I hear the word debt,  it makes me wonder: what does sleep debt have to do with financial debt? Can you snooze your way to spendfulness? Could the way we handle our money affect how well we sleep—and vice versa? Spoiler alert: absolutely. Let me show you how these two parts of life intersect, and maybe even how a little more clarity with money can help you get better rest.

Today we’ll nestle down under the covers, to talk about the parallels between money habits and sleep debt, because both have a huge impact on your wellbeing. ‘Cause guess what, sleepyhead—these two things are closely intertwined. 

What is sleep debt?

Sleep debt is about regularly missing out on the optimum amount of shut-eye that your body needs, which means you end up borrowing energy that you don’t have. The NIH suggests 7-9 hours for adults. If you don’t (or can’t) meet that number, your sleep “account” is overdrawn, and it’s got to be paid back. \The cost of this debt—the interest, if you will—is high. You may experience reduced ability to function, impaired problem-solving skills, and even physical symptoms like higher blood pressure. Yikes.

The cost of this debt—the interest, if you will—is high. You may experience reduced ability to function, impaired problem-solving skills, and even physical symptoms like higher blood pressure. Yikes.

Perhaps it’s simply that ol’ fashioned sleep deprivation got a rebrand, and a catchy name. But this image of a bank account that’s crying out for a top-up? It somehow feels more powerful.

A debt is numerical; something measurable, math-able—two hours of missed sleep each night is fourteen hours in a week. It’s also something that looms over you and impacts your life on the daily. A burden that Future You will have to address.

What does this have to do with money?

There are plenty of similarities between financial debt and sleep debt. Using more (money, waking hours) than you actually have available to you? You’re digging a hole. At some point, the hole needs filling in and you need to find more (cash, sleep) to get back up to ground level.

Both cause tons of emotional and physical stress, too. You might be left irritable and feel like things are out of control. Both of them deserve some care and attention, and a plan of action.

I learned more from a friend, whose son tracks his sleep debt. He uses an app to monitor his progress, but it’s about more than just passive tracking. He sets an intention, and uses that as motivation to help him meet his goal. He’s even made lifestyle changes; as a gigging musician he changed his regular performance schedule to make more space for sleep.

Sounds familiar? The parallels with successful money management are all there! The YNAB app empowers me to Give Every Dollar a Job. That means I can be really clear in my intentions, and make progress towards my aims. With sleep and money alike, tracking is only really valuable if it leads to positive change.

One important thing to bear in mind for both sleep and money: sometimes there are circumstances out of your control, and you’re doing your best with what life serves up. Perhaps you have a little person who wakes several times a night. Perhaps that same kid needed a costly trip to the ER. So this is a judgement-free zone.

If your instinct—I see you—is to label yourself a screwup, find some self-compassion, if you can. Both kinds of debt could be unavoidable, right now. You can still make a plan to improve the situation.

One late night or impulse buy isn’t the end of the world

One or two missteps isn’t the problem. Much like with money, it’s possible to stay largely on track with your sleep after a couple of isolated incidents. A dinner party that runs late, even though you have an early start tomorrow, probably won’t cause much trouble on its own.

In a similar vein, that one impulse buy that caught your eye may not fully derail your spending plan. So allow yourself the bougie coconut pain au chocolat. I know I did, and I don’t regret it.

...these two parts of your life—sleep and money—may be having more direct impact on each other than you realize.

Instead, for both money and rest, consider the longer view. Try this simple process to get started:

1. Spot the patterns: What’s really going on with your bedtime routine? What trends do you notice in your spending?
2. Identify your triggers: What leads you to stay up too late—or make a purchase you don’t love?
3. Ask this question straight from the YNAB Method: “What changes do I need to make, if any?” Use it for both sleep and spending.
4. Make one small change: Shift one habit—go to bed 15 minutes earlier or move money to cover an expense you care about.
5. Give yourself grace: Perfection isn’t the aim. Your habits come from somewhere, and they can change over time.

The money-sleep-vicious-circle

Another thing to consider: these two parts of your life—sleep and money—may be having more direct impact on each other than you realize. Or maybe you do know it, but the paralysis to take action is real.

How often have you splashed out on DoorDash because you were too bone-tired to wrestle the pots and pans out of the cupboard to make dinner? Have you experienced sleepless nights, staring at the ceiling, running money math in your head? 

If you’re stuck in that cycle, be open-minded to solutions you might not have considered. For sleep, that could mean trying a white noise machine, adjusting your bedtime routine, or even talking to a doctor about a sleep study. For money, it might mean exploring tools—like YNAB—that help you create space for the things you love while still making progress on debt or savings goals.

Is financial debt keeping you awake?

You may not even have financial debt. You might have plenty of cash in the bank, but lack confidence about how you’re spending it. Perhaps you’re second guessing the pricey vacation you booked, or wondering if you can afford your dog’s upcoming surgery, even though you have money in your account.

So while life, in all its complicated glory, will throw many factors into the mix, it’s worth stepping back to see if there’s a direct correlation between your sleep debt, and your financial wellbeing. Sometimes we don’t realize the cause-and-effect cycles we get caught up in, until we stop and label them.

Sleep better at night

I’ve definitely lain awake before, thinking about money. Playing mental math and hoping that my latest credit card application will be approved. 

It’s a draining, exhausting place when your brain can’t shut down at night, juggling to make the numbers work. 

Fast forward a few years, and as a YNABer, I now have clarity in my finances. Money isn’t everything, but it is a big part of our lives—whether we want it to be or not. The relief is real, and my healthier money habits lead to better outcomes in other areas of my life, too. 

Like climbing into bed at the end of another day, well spent.

‍Don’t let money matters keep you awake. 92% of users report feeling less stress since using YNAB. Start your free trial today!

I used to lose sleep at night over my lack of savings and debt. I no longer worry about money. I know the goals I have for my money, how I'm going to accomplish them, and when. I have a one-year, two-year, and 5-year plan in place. The peace of mind that comes with getting proactive with your finances cannot be overstated.

‍—Rachael Carroll, YNABer