“Being too optimistic causes people to make poorer financial decisions”
December 19, 2023
“…Specifically, researchers discovered that being too optimistic impacted decisions tied to employment, investments or savings, and any choice involving risk and uncertainty.
“Unrealistically optimistic financial expectations can lead to excessive levels of consumption and debt, as well as insufficient savings. It can also lead to excessive business entries and subsequent failures. The chances of starting a successful business are tiny, but optimists always think they have a shot and will start businesses destined to fail,” Dr. Dawson continues…
“The problem with our being programmed to think positively is that it can adversely affect our quality of decision making, particularly when we have to make serious decisions. We need to be able to over-ride that and this research shows that people with high cognitive ability manage this better than those with low cognitive ability,” Dr. Dawson concludes…”
https://studyfinds.org/too-optimistic-poorer-decisions/
In my opinion it’s better to be a realist. Taking risks can be a good thing but is always a good idea to keep in mind the consequences.