The Overconfidence Effect is a powerful psychological phenomenon in which people overestimate the accuracy of their knowledge, abilities, or judgments, often believing they are more certain than the evidence justifies. While confidence can drive ambition and achievement, unchecked overconfidence can lead to costly errors in
decision-making, from mismanaging finances to underestimating health risks. Understanding this effect is vital because it empowers individuals to recognise the limits of their certainty, seek diverse perspectives, and make more balanced choices. By cultivating humility alongside confidence, people can improve their relationships, safeguard their mental health, and make healthier lifestyle decisions, ultimately fostering resilience, wisdom, and overall wellbeing. A wise man once said, "Pride goes before destruction, and a haughty spirit before a fall" (Proverbs 16:18).