The AMA describes decision fatigue as “a state of mental overload that can impede a person’s ability to continue making decisions.” I have certainly experienced a state of mental overload recently*, so it is no wonder I feel fatigued. Much of my decision fatigue surrounds COVID related decisions. COVID.
*I originally wrote this piece as a newsletter in January 2022, but four months later the content still holds true. Though Dr. Fauci has announced that the US is now in a transitional phase rather than a pandemic phase, I am seeing more cases (though mild) in my friends, family, and neighbors than I was back in January.
Making decisions during the pandemic is hard because we know that all of the decisions we make could potentially impact the health of ourselves and our loved ones. We also know that the collective decisions our communities make will impact our society’s physical and mental health as well as the economy.
Pandemic Decisions Differ from Other Decisions
We make difficult decisions all of the time. A friend commented earlier this week that they have made the decision to drive a car although we know traffic accidents are a leading cause of death. They don’t worry each time they get in a car. So, why are the decisions regarding COVID so much more exhausting?
At some point, we all look at the factors regarding traffic safety and then decide if we want to drive or ride in a car. We look at the advantage (ability to travel further distances) in relation the risks (accidents resulting in injury). We may have an accident or another experience that causes us to revisit our decision. But, generally, we are able to make the decision and move on with confidence.
When making choices during the pandemic, however, we are constantly receiving new information. We may have made a decision back in spring of 2020 not to wear masks because we were told they did not help. Then, in summer 2020 we were told that masks are an effective way to slow the virus. Now we have to make another decision. Many of us were told that multiple ply cotton masks were the way to go. Then, during delta, we were told to double mask with a cotton and disposable. Now, we have moved onto Omicron and are being told to use an N95 mask. But is that different from a KN95 mask? How about a KF94 mask? Does it matter if it’s made in China or Korea? Just which mask is sufficient? Is it worth the cost?
Our Scientific Knowledge is Constantly Changing
It is the combination of new information and the decisions required as a result of new developments that are exhausting. I want to be clear that I am not questioning the medical or scientific community. I trust their guidance. COVID is new to everyone and we are all doing our best to figure things out as we go along. We are navigating both a mutating disease and evolving knowledge on prevention and treatment.
The nature of making decisions around COVID means that we don’t make a decision once. We make that same decision over and over again every time there is a change either to the situation or to the scientific findings. There is rarely a feeling of finality or moving on. It is the “re-deciding” again, and again that I believe is taking a toll on me. I suspect others feel the same.
Money Decision Fatigue
Do you know what operates similarly? Money decisions!
We make a decision based upon our current financial situation. We may decide that we can afford to go out to lunch once per week. Then we have a large medical bill, a car repair, or something else that affects our bank account. Now we have to decide if we can still splurge on that meal out.
And, of course, major life events can profoundly affect our money decisions. People change jobs, move, have children, get married or divorced. Suddenly, they have to revisit all of their prior financial decisions. It can be exhausting to continue to re-examine the same choices over and over again.
If you are employed by a company, you likely have an annual open enrollment period. During this period you are required to revisit all of the decisions you made the prior year. Sometimes, the options are similar and you can just leave things the same. But other times your choices are dramatically different and you are essentially starting from scratch.
Those Pesky Financial Advisors
And, then, there are those frustrating financial advisors telling you that you should revisit all of these decisions every year. Don’t just assume that your insurance, investments, and estate plan still works for you. Situations change and you should be sure that you are protected against risks while not leaving money on the table. Because, of course, you have nothing else on your mind.
As one of those single minded advisors, I am personally working to reconcile my own training with the realities of life and the constraints on our time and energy. Being a financial planner, I recognize the importance of staying on top of our finances to improve our financial health. As a person, I know this is hard. I confess that I am about two years overdue in rebalancing my retirement portfolio. I also recently realized that I never updated my auto insurance to reflect that I no longer commute downtown. (It is so much easier to handle this issues for others as my work, than to manage my own.) Life tends to get in the way.
Ego Depletion and Decision Fatigue
Social psychologist Roy F. Baumeister created the term ego depletion. Ego depletion refers to the Phenomenon that we have a limited amount of energy for exerting self control. John Tierney wrote in his 2011 New York Times Magazine article on decision fatigue, “Once you’re mentally depleted, you become reluctant to make trade-offs, which involve a particularly advanced and taxing form of decision making.”
In other words, when we have to make too many decisions, we stop compromising and start indulging ourselves. It makes sense, then, that so many of us spend money when we feel overwhelmed.
This could be as simple as getting takeout after a long day of work. After making endless decisions throughout the day, merely choosing what to have for dinner can feel like that last obstacle that you just cannot deal with.
At other times, large expenditures can bring about the decision fatigue. Imagine an individual remodeling their home. They may start out with a strict budget and a clear objective. After months of decisions, it is easy to get to a place where you just starting spending whatever is necessary to get through the project and make all of the choices disappear.
Poverty and Decision Fatigue
Based upon the above information regarding decision fatigue, it is logical that those with the fewest resources would have the greatest level of fatigue.
Personally, when I go grocery shopping, I generally just buy what I want or need. Sometimes I will look at a price and decide to wait for a sale or to buy a cheaper brand. But, I am not making particularly difficult decisions. If my favorite but costly Greek yogurt is not on sale I will buy a different brand. A simple substitution.
People living in poverty, however, have more challenging shopping decisions. If you cannot afford both toothpaste and toilet paper, which do you buy? This is not a one time decision like buying a car or a computer, which may be stressful but is also infrequent. Rather, people without adequate money must make these crucial decisions daily.
For those with lower incomes, there can be no end to the repeated decision making. If a parent is unable to afford reliable childcare then they are constantly reassessing their options for care for their children each time they need to go to work. Someone without sick days has a greater choice to make if their or their child becomes ill.
Managing Money Decision Fatigue
When it comes to making money decisions it is important to, whenever possible, avoid making purchases when you are depleted. Try to plan your schedule so that your shopping happens earlier in the day, before you reach your decision making limit.
Book your vacation during your morning break, rather than in the evening. Go car shopping on the weekend, not after a long day of work. If you must spend money when tired or overwhelmed, try to plan ahead. Set and stick to a budget. Make the shopping list ahead of time and adhere to it. When making large purchases, spur of the moment changes can be costly. Even with smaller purchase, additions can mean substantial spending increases over time. Finally, a huge spending risk for many of us: try to avoid the ever-dangerous, mindless, late night, online shopping.
Managing General Pandemic Decision Fatigue
In researching pandemic decision fatigue I came across an article by UNC Health Care providing 3 Tips for Manging COVID-19 Decision Fatigue. Interestingly, the article is from April of 2021. For anyone else feeling exhausted, the date is a helpful reminder that we have been dealing with pandemic flux syndrome and fatigue for a long time now. Or reserves are beyond depleted.
The UNC Health Care piece lists the three tips as
- Acknowledge the struggles
- Determine your risk tolerance
- Be gentle with yourself
This is helpful advice not just for pandemic fatigue but for all decision fatigue.
It is so easy to feel that you are the only one struggling and everyone else is on top of their finances. In reality, however, very few people have it all figured out. Making decisions about money is hard. There are so many factors to consider. Situations change. This does not mean we should ignore our finances, but it is essential to recognize that managing our money can be a struggle.
Risk Tolerance and Risk Capacity Varies by Individual
Risk tolerance is a very personal item in relation to both health care and money. Two people in identical situations may have very different tolerance for risk, leading them to make very different decisions. One person may feel comfortable eating in restaurants while another does not. In the same way, one person may be comfortable having less life insurance while another cannot relax until they increase their coverage. This does not mean that one person is wrong. One decision is not better or more moral than the other.
In financial planning, we also discuss the topic of risk capacity, or how much risk you can afford to take. How comfortable you feel taking a risk is often directly related to how seriously that risk will affect you. Money needed to pay bills should not be placed in volatile investments because there is no capacity for loss. Similarly, someone with a co-morbidity may have less capacity for social contact during the pandemic than someone in a low risk group. This is why we all need to make our own decisions without comparing ourselves to or copying others.
Finally, being gentle with ourselves is a practice that most of us could benefit from in multiple areas of life. We don’t need to beat ourselves up or harshly judge ourselves for financial choices that we later regret. Replaying our decisions regarding pandemic life will only increase our anxiety. Ultimately, caring for ourselves will increase our internal reserve, which will allow us to make better decisions in the future.