Although a positive mindset is often associated with success, a new study suggests that excessive optimism often leads to poor decision-making, especially when it comes to finances.
The study, conducted by the University of Bath in the United Kingdom and published in the Personality and Social Psychology Bulletin, sought to determine whether people with an optimistic mindset had worse decision-making cognition than people who were more realistic. The researchers found that people with lower cognitive function tended to be more optimistic, which led them to make poor financial decisions.
