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Most of us are not as self-aware as we think we are.

Research shows that people who have a high level of self-awareness—who see themselves, how they fit into the world and how others see them clearly—make smarter decisions, raise more mature children and are more successful in school and work. They’re less likely to lie, cheat and steal. And they have healthier relationships.

Tasha Eurich, an organizational psychologist from…