The article explores how borrowing constraints affect people's wealth accumulation and investment choices. By analyzing different types of constraints and using real-life data, the researchers found that income-based constraints lead to less borrowing and less risky investments. However, constraints based on assets as collateral may not always have the same effect. Tight constraints can change how people save and invest, sometimes reducing the impact of precautionary measures. Including constrained households in studies with unconstrained ones can skew results, making it harder to see the true effects of precautionary measures on wealth and investments.