Is Decision Fatigue Costing You Money?
In a study of more than 1,100 parole hearings, researchers found something striking:
- Prisoners seen early in the morning were granted parole around 70% of the time
- Those seen late in the day were granted parole less than 10% of the time
And here’s the key insight:
It had nothing to do with the prisoners.
It was decision fatigue.
What is decision fatigue?
Just like your body gets tired after physical effort, your brain gets tired after making decisions.
The more decisions you make:
- The more mental energy you burn
- The harder it becomes to think clearly
- The more likely you are to default to shortcuts
When this happens, your brain does one of two things:
1️⃣ Does nothing – sticks with the status quo
2️⃣ Acts impulsively – makes fast decisions without thinking through the consequences
How does decision fatigue cost you money?
If you’re asking:
- A customer to sign a contract
- Your boss for a pay rise or promotion
- A stakeholder to approve a decision
…and you do it late in the day, they’re more likely to say no — not because it’s a bad idea, but because they’re mentally depleted.
On the flip side, when you’re tired and someone offers an upgrade, add-on, or impulse buy, you’re far more likely to say yes.
Either way, decision fatigue quietly costs you money.
What can you do about it?
1️⃣ Make big decisions early
Do your most important thinking in the morning. Avoid major commitments late in the day.
2️⃣ Reduce the number of decisions you make
Stop wasting mental energy on low-value choices. Save it for what really matters.
3️⃣ Keep it simple
For smaller decisions, choose the simplest option.
And when persuading others, fewer choices lead to better outcomes.
Decision fatigue isn’t a weakness. It’s a capacity issue.
Protect your decision-making… and you protect your money.
Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.
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