This classic was from 2012, back when I was very worried about money. Still had plenty to plan for, with RESPs and RDSPs, but also still had a mortgage. I was employed and had managed to get into a good pension, but I still had anxiety. My son’s private school fees were a constant grind, too. Job insecurity and today’s issues were there for me, having been laid off, but not a primary reason for my insomnia. I am financially sound, but I still am not sleeping well.
Would you rather have a good night’s sleep or be financially sound? Remember, losing sleep can kill you.
That is a trick question because, in my case, if I were financially sound, I would sleep better. My sleep patterns are not ideal, I am a classic worrier (I believe it is genetic). I have had many sleepless nights. At the end of it, it has been directly or indirectly due to money (and the lack thereof).
If I was single, I might not worry about money as much, and maybe losing sleep less. However, having a family and dependents makes money issues magnify in significance 10 fold (at least). It’s funny that money can play that big a role in someone’s life. In my case, it most certainly does (when I was a teenager, I never thought I’d get a girl and if you’d told me I was going to be making what I am, I’d have said, “Bring it on!”. engaging how the table has turned).
Given the effect worrying has on most folks health (for those that don't worry (and I don't believe you don't worry) you'll have to imagine this), makes me start wondering about whether insurance companies are going to start asking financial health questions when you apply for health insurance or life insurance? This may sound far-fetched but is it really?
Medical studies are showing that worry and stress shorten people's lives and can cause significant health issues. Why wouldn't insurance companies consider that? In the 1960s, whether you smoked was not a question on your life insurance application, but it most certainly is now. Obesity and weight may not have been an issue before, but it most definitely is part of applications for life insurance. So why is stressful money such a stretch?
A few ideas that could cause insurance companies to put up a red flag on someone applying for insurance might be:
- Over a certain age (say 35) and still owing more than 1/2 of your mortgage principle.
- No retirement savings in place (and no pension either)
- At Credit Card maximum rates
- Applied for a Credit Limit increase and was refused
The list could be quite long. Your financial lifestyle may directly and indirectly affect your health.
Some helpful Quips about financial stress and sleep
- “I’m financially sound but still anxious”, welcome to adulthood!
- 3 a.m. financial math is always wrong and always terrifying
- Red flag: chronic sleep loss blamed solely on “being busy.”
- Red flag: pretending stress doesn’t affect health
- Canadian reality: RESPs, RDSPs, and mortgages are great… but they don’t tuck you in at night
Isn't that helpful? Not really, if anything, it's a bit of "Richard play".
Lack of Sleep Redux
Money stress doesn’t clock out at 10 p.m, although I wish it did! It waits until the house is quiet, the lights are off, and your brain decides now is the perfect time to replay every financial decision you’ve ever made. That’s when numbers stop being abstract and start feeling personal. Remember Zero Mostel and his fears?
What makes financial stress particularly brutal is that it often persists even after you’ve “done the right things.” You can have a job, a pension, savings, and still lie awake worrying about tuition, mortgages, aging parents, or the next unexpected expense.
The uncomfortable truth is that money anxiety is less about current balance sheets and more about perceived risk. Sleep suffers not because you’re irresponsible, but because you care.
Grok’s perspectives on this are:
The post discusses how financial worries disrupt sleep by perpetuating stress cycles, linking to a blog advocating budgets and expense cuts to regain control and improve rest.
Accompanying image features the adage “Plan like a Pessimist, Live like an Optimist,” illustrating a balanced approach to financial anxiety that prepares for worst-case scenarios while maintaining positivity.
Peer-reviewed research, including a 2025 Rice University study, supports this by showing financial stress alters bedtime behaviors and reduces sleep quality, with chronic effects mediating broader health risks like dietary issues.
I must agree as well that stress affects sleep behaviors. If you can figure out a way to get your finances under control, you will get better sleep and gradually you will become more aware and more effective. It can be as simple as setting a personal budget to help manage your finances, or cutting down on daily expenses such as purchasing coffee
Interesting question. You have a point. Mental illness, lack of sleep, etc do have an effect on people’s health and yet the triggers for this aren’t looked at like you say. Maybe they should be? I guess the tricky part is that the list of triggers for this could be endless so quantifying it into an algorithm where you could determine who to approve and who not to would be really hard.
It’s true that money does affect sleep. When I’ve got a potential issue related to money or something around the house that worries me (which inevitably leads back to ‘how am I going to pay for that’) it causes me to lose sleep. Usually for me, if I wake up for one of the kids or to go to the bathroom, I can fall right back asleep, but if something triggers in my mind relating to money, it causes me to stay up and worry.