The most crucial element of a plan is planning for its failure

"The most important element of any plan is to plan what you will do when things don’t go as expected." said Morgan Housel in his The Psychology of Money book. This simple but powerful quote reminds us that even the most carefully designed strategies are vulnerable to surprises. In business or personal life things rarely evolve exactly as predicted.

Why planning for failure matters?

We can of course do our best to maximize chances for our success, but not everything depends on us. For this reason we should always leave margin of safety which can be understood in different way depending on specific case - extra cash, more time, buffer of energy. Without it, even the smartest strategy can fail. It protects us from surprises when the unexpected happens.

Think of successful companies - what sets them apart is not just their ambition, but their ability to survive long enough for that ambition to come true. They can survive in unexpected situations - whether that is economic crisis, failed product launch or sudden expenses - because they included safety mechanisms in their plans. The same principle can be applied by any person or company.

Protect yourself from today!

🟠 Start saving an emergency cash. Keep these funds separate from your regular budget.

🟠 Add extra time to deadlines, projects, trips or appointments. Reserve it for unexpected delays.

🟠 Practice assertiveness and saying "no" strategically to protect your time and energy by declining commitments that don't align with your priorities.

🟠 Learn essential skills (cooking, first aid, basic car repair) for self-reliance.

🟠 Organize most essential items at home (food, medicine, basic supplies) to have peace of mind when unexpected events occur.

🟠 Consider which other parts of your life or business are most vulnerable to unexpected events (for example finances, health, project deadlines, key clients, suppliers). Then think about what could go wrong in each area and how you could respond if it does.

It is not sabotaging your success!

It is important to understand that planning for setbacks is not sabotaging your success. On the contrary, it strengthens your chances of achieving your ambitions. Remember, that preparing for the unexpected doesn't mean you're expecting to fail - it means you're being realistic and responsible. By leaving margin of safety you create the freedom to take risks and pursue bigger goals without fear that one mistake will ruin everything. Resilience and foresight are not signs of doubt - they are the tools that keep your ambitions alive when challenges appear unpredictably.