1. I have been lucky, but I’m also a 2nd generation immigrant. I remember how many things my parents had to deny themselves (and me) growing up. Of course this

1. I have been lucky, but I’m also a 2nd generation immigrant. I remember how many things my parents had to deny themselves (and me) growing up. Of course this mileage only takes you so far, but on many incomes, there’s real power here. The fact that it’s painful to deny yourself these things is the point. Most bad financial things happen to people who won’t tolerate that pain, so they get locked in marginal situations with little room to take risks or have anything go wrong. Eventually, something always goes wrong. This is the only way to protect yourself. It doesn’t mean it doesn’t hurt. 2. This is the exact point. Each of us have to judge the consequences of failure for each decision. If you only have a couple hundred dollars left after expenses, risk aversion is the right call—-and falls well within the real of managing your risk.