I’m re-reading The Psychology of Money and one chapter keeps jumping out at me: Room for Error.
It’s a lesson I’ve learned the painful way.
More than once.
I’ve never been particularly good at building room for error into my plans. Whether it was money, business, health, or even my own energy levels, I often assumed things would go roughly to plan.
They rarely do.
What I’ve realised is that you need to build your margin far earlier than you think you need it.
Because when things are going wrong, that’s the worst possible time to start creating a safety net.
You won’t want to.
You’ll be stressed, emotional, tired, distracted, or scrambling to solve the immediate problem.
The reason you build room for error isn’t because bad things are guaranteed to happen.
It’s because if they do, you’re prepared.
When something unexpected happens, instead of panic, it’s simply:
“That’s annoying, but I planned for this.”
That shift is powerful.
Not just financially, but psychologically.
You don’t lose days, weeks, or months trying to recover from something you never accounted for.
You don’t burn unnecessary energy trying to put out fires.
You keep moving.
What’s interesting is that room for error applies to almost everything.
Money is the obvious one.
But health is the same.
Leaving yourself enough energy to recover.
Enough time to rest.
Enough capacity to handle a bad week without everything falling apart.
Business is no different.
Cash reserves.
Extra time on projects.
Not operating permanently at 100% capacity.
The people building interesting things often focus on optimisation.
But increasingly I think longevity matters more.
If nothing goes wrong, great.
You’ve built a buffer that can be reinvested elsewhere.
More opportunities.
More freedom.
More experiences.
More growth.
But if something does go wrong, and eventually something will, you’ve already paid the insurance premium.
Having room for error isn’t pessimism.
It’s one of the most practical forms of optimism there is.