A recent study has uncovered a striking connection between cognitive ability and the tendency to have unrealistic financial expectations. The findings, published in Personality and Social Psychology Bulletin, provide evidence that individuals with higher cognitive abilities tend to have more realistic, or even pessimistic, views about their financial future.
  • @Potatos_are_not_friends
    5•10 months ago

    Previous studies have shown that people tend to overestimate their future earnings and life expectancy while underestimating the likelihood of negative events like divorce or health issues. The curiosity here lies in understanding why, despite the advantages of unbiased assessments, people still skew towards optimism.

    This article hurts.

    In 2018, my coworker got a promotion, bought a Tesla. In 2021, got another promotion and put a down payment on a house. In 2023, got divorced and spiralled. A lot. He hates his Tesla and has been trying to get rid of it. He’s constantly sharing house repair issues. His mental health has gotten bad.

    We are trying our best to empathize but his work is suffering, which means at some point, we’ll have to let him go.

    Shit sucks. Stash money away for a rainy day, because life does hit hard.