Confidence can be enchanting.
A person can fall head over heels for a love interest they find confident.
People like to follow self-assured leaders.
We like our CEO and politicians to at least appear like they know what they are doing.
News flash: they don’t always know.
Confidence is one thing, but overconfidence can cause one to be spellbound with one’s own opinions and lead to ruin.
The risk-takers apparent certainty can lead them to make foolish decisions that decimate their wealth. The play-it-safe person’s don’t-tell-me-what-to-do attitude can lead them to make unwise decisions that shrink their wealth too.
This is a universal problem that all human beings are prone to.
The Nobel Prize-winning psychologist and bestselling author, Daniel Kahneman, has been researching human behavior and decision-making for years. According to one of his interviewers1, guess which behavior Kahneman would like to eliminate with a magic wand…
None of us are immune.
Be aware of it and try to avoid it.
It not only can be one of the main culprits that jacks up a person’s investments and financial plan, it can mess up your life.
1. Accessed online: https://www.theguardian.com/books/2015/jul/18/daniel-kahneman-books-interview