A sensible person would not have their finances stretched so thin that they cannot deal with an interruption in their employment. I.e. one should be setting aside at least 10% of their income.

I worked for a company once that was doing poorly, and management decided to do an across-the-board 10% pay cut. One of my coworkers was livid with rage. I asked him why didn't he just quit and get another job? He said he didn't have any savings at all, and bills to pay. He had a mcmansion with expensive new furniture, new cars for himself and his wife, and expensive clothes. He had forged the chain connecting him to his desk - not the company's fault.

Savings don't protect you from the stress unless you've saved enough to retire. Savings provides a buffer of time you get to find another job, but you still have to find (and land) that job. Given how f'd-up tech hiring is and the current job market that might not be as easy as it sounds... So I can understand why people want to avoid that level of stress and the compromises they will make to do that.

Having savings to give you a buffer of time is much less stressful than no savings.

No doubt it is way less stressful... going from "I'm going to need to have an accident so my family can live off my life insurance" to "I need to see a doctor about all this ulcer". But you'd still rather not have the ulcer.

If people don't have stress in their lives, they'll invent it.

For example, my dad survived 32 missions over Germany. His group had 80% casualties. He had resigned himself to inevitable death. When he arrived home, he was amused by the trivial things people were stressed about. After all, they would survive to the next morning.

Thereafter, whenever he felt down, he'd think about what a golden opportunity he had to live, that his buddies did not have.

This morning, it was rainy and gloomy. In the afternoon, the sun came out and lit up the wet trees. It was spectacular. What a fine day to be alive.