Optimal Finance Daily · Thursday, September 17, 2026
Host Justin Mallick discusses the concept of building a financial cushion, agreeing with Leo Babauta's approach. He acknowledges that while investing all available cash might be technically optimal, the peace of mind and reduced anxiety from having a buffer are more valuable for some individuals.
“This is one of those money ideas that a strict optimizer would probably hate. And that's exactly why I like it.”
“But peace of mind is also worth a lot. The feeling of not living right at the edge of zero, of knowing your bills are already covered. That's important.”
“So if you've been pouring every spare dollar into investments, and you still feel financially anxious, maybe the best move isn't another investment. Maybe it's just a little cushion of cash that lets you breathe.”