I have done it before and I know I can do it, but I don't see the point in inflicting abject poverty on myself just so I am vaguely protected.
I understand what you are coming from, but really isn't for me. (Maybe when my income grows / I don't live in NYC...)
If you're in the tech industry you can afford to save 30%+ of your income. We have a it a lot better than other sectors and make good money.
Take a small pay cut now for a large payout in the future. Don't sacrifice your future for a little fun now.
Sometimes while you are doing this you will die.
I had two really good friends who died in their early 30's, both would have made great family men, both saved carefully, got an education at great personal cost, one served in the military, both were austere and diligent in their lives. Their parents did not seem consoled by the large cash sums that they received from these men's estates.
I think that both of them would have been well served to have lived a little more before their time was up. What's the value of amazing maths skills and financial security when you are dead?
In our industry you can save enough money through your 20's and 30's to retire in your 40's. It makes far more sense to do that then to plan on dying in your 30's.
Every generation seems to have a big economic shock it has to weather through (or two or three). I think living on a percentage of your income with 6-12 months' salary in the bank is the only smart thing to do when you're able to do it.