My co-founders and I are in this situation, and we did YC this winter (Zencoder), so it definitely can be done. We basically ran on savings for four months, and

My co-founders and I are in this situation, and we did YC this winter (Zencoder), so it definitely can be done. We basically ran on savings for four months, and were able to raise money quickly, so none of us lost our homes or wives/girlfriends. But not risking your savings, on the other hand - if you aren't willing to risk your savings, being a startup founder might not be for you. :)