What is the risk of having an inflated sense of self in decision-making?

Having an inflated sense of self in decision-making can indeed lead to unrealistic expectations. When individuals overestimate their abilities, knowledge, or control over situations, they are likely to set goals or outcomes that are not grounded in reality. This can result in disappointment and poor decision-making, as they might ignore critical information or warnings that contradict their inflated self-view.

Realistic expectations are essential for effective planning and risk assessment. When expectations are misaligned with reality, individuals may undertake unnecessary risks or fail to prepare adequately for challenges, ultimately affecting their personal and financial well-being. This highlights the importance of self-awareness and a balanced view of one's capabilities in making sound decisions.