Financial Fatigue: Why Late-Night Money Decisions Leave Us ‘Sleepwalking’ into Difficulty

Imagine this: it’s the quiet hours of the night, and 59% of us find ourselves facing major financial decisions when our fatigue makes it challenging to concentrate. It’s not difficult to understand why – after a long day of work, tending to family, preparing dinner, perhaps squeezing in some extra work or hitting the gym, and, of course, catching up on our favourite crime dramas or leisure activities, our minds are hardly at their sharpest. We’re practically sleepwalking through our financial dilemmas!

Now, amidst the juggling act of these essential tasks, you might question whether this is the ideal moment to dive into financial matters and life admin. It’s like trying to read a bedtime story to your finances, hoping they’ll drift off to sleep peacefully.

Yet, despite the exhaustion, a significant number of us (59%) find ourselves crunching numbers and navigating financial complexities, potentially leading to less-than-optimal outcomes. We’re like insomniacs trying to count sheep, only these are financial sheep, and they’re not making us any sleepier.

In this scenario, it’s worth pondering if financial institutions rely on our late-night number crunching to obscure the truth. This concern becomes more pressing against the backdrop of high inflation and a cost of living crisis, with 37% of respondents finding it increasingly difficult to save and 26% noticing the erosive effects of inflation on their savings. Interestingly, 61% of individuals express dissatisfaction with the returns on their hard-earned money. It’s as if our savings accounts have become restless sleepers, tossing and turning in the face of economic turmoil.

A substantial portion of us (67%) set money aside for life’s pleasures or our loved ones, but many are stumped right from the starting line, unsure whether they’re maximizing their financial potential or if their money could be working harder elsewhere. It’s like trying to hit the snooze button on financial uncertainty, but it keeps buzzing in our heads.

The research, from Wise, highlights a pressing need, with a third (31%) of respondents yearning for financial information that doesn’t require a degree in financial jargon to comprehend, especially when our minds aren’t at their sharpest. We need financial advice that’s so clear, it’s like a lullaby for our exhausted brains.

The fine print, already a labyrinth in broad daylight, becomes an even more bewildering enigma in the twilight of exhaustion. Alarmingly, only a meagre 16% feel that their banks play fair in the savings game and give a fair savings rate, underscoring a widespread sense of mistrust. It’s as if the fine print is written in a language only decipherable by nocturnal creatures.

In response to these challenges, 31% of respondents believe that financial documents should be more straightforward, and 29% feel that banks should provide clearer information about their savings rates. Furthermore, half of the respondents (51%) harbour trepidation about investing, with 43% calling for a simpler and more comprehensible investment process. We want financial advice that’s as easy to digest as a midnight snack.

The irony is glaring against the backdrop of the night sky: the mechanisms designed to safeguard our finances might inadvertently lead us astray in the midst of the nocturnal fog of financial complexities. A substantial 37% find saving money increasingly challenging, exacerbated by the confusing terminology that leaves them bewildered. It’s like trying to navigate a dream world where the rules keep changing.

An overwhelming 78% of respondents lament their lack of time to make informed decisions about their savings. This majority felt that time constraints were a significant hindrance to managing their finances effectively, as the demands of daily life and other commitments left them with limited opportunities to explore their savings options thoroughly. It’s like trying to fit a full night’s sleep into a power nap.

As a result, nearly a quarter (21%) express doubts about ever saving enough money for the demands of modern-day living. It’s like trying to catch some Z’s in a world that never stops buzzing.

One person who understands this more than most is Kia Commodore, personal finance expert and podcaster (Pennies To Pounds). Kia underscores the importance of putting our money to work and establishing a savings routine.

Join Kia to find out more and discover how to navigate the financial world even when it feels like you’re sleepwalking through it.