Excessive optimism linked with lower cognitive abilities: Study(Unsplash)Research from the University of Bath shows that excessive optimism is actually associated with lower cognitive skills such as verbal fluency, fluid reasoning, numerical reasoning, and memory. Click hereWhereas those high on cognitive ability tend to be both more realistic and pessimistic in their expectations about the future. But the results are clear: low cognitive ability leads to more self-flattering biases -- people essentially deluding themselves to a degree." "Unrealistically optimistic financial expectations can lead to excessive levels of consumption and debt, as well as insufficient savings. 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," he said.

Source: Hindustan Times January 09, 2024 15:09 UTC