Saving Like A Pessimist

If you are aware that 'black swan' events are not so unusual, you can plan if such an event happens. That is the benefit of a high savings rate - it is easier to overcome an unexpected obstacle.

But there are limits. If you lose a house to a wildfire, then you're not relying on short-term savings to recover but on the insurance company providing you with the coverage you paid for. However, pessimism gives you an awareness that bad things happen.