Why Optimism Is Dangerous for Your Financial Well-Being

Optimism has become a cult these days. Both mainstream and social media outlets strongly encourage their readers, viewers, and listeners to keep believing that everything will be fine no matter what. This largely happens because optimism is easy to “sell”. It gives you hope in almost all situations even when objective and unbiased analysis and data often show that there is no hope whatsoever. So what? The thing is that a recent major study demonstrates that optimism is actually dangerous for your financial well-being (“Looking on the (B)right Side of Life: Cognitive Ability and Miscalibrated Financial Expectations”, Chris Dowson, School…...