However, the problem is that if costs of living keep increasing, there is only so far spending can be reduced, before it starts eating into savings. If this continues, it doesn't just eat into savings, but it also generates debt, and debt service obligations, another cost pressure on an already pressured financial situation. It is a losing game, and soon the floor where cutting costs is no longer possible is reached, and there are no additional resources to start building, stress is high, and it is affecting physical, mental and emotional conditions.

Sage words my friend, they make a lot of sense and this is a scenario I suspect plays out for many, especially those that are risk averse and financially illiterate.

My advise to you on the question you ponder at the end is to take a measured and balanced approach. No reason why you need to be fully one side or the other, somewhere around the middle works well for me and I can turn the dial slightly in either direction depending on externals and macro situation.