This paper explores the application of advanced risk modeling techniques—Monte Carlo, historical, hybrid, and stress testing with economic capital—to personal finance, drawing lessons from the collapses of Lehman Brothers, Barings Bank, and Washington Mutual. Using PySpark, it demonstrates how individuals can mitigate financial risks, such as savings depletion and retirement shortfalls, by accurately estimating Value at Risk (VaR) and preparing for extreme scenarios. The study offers a scalable, data-driven approach to enhance financial resilience and decision-making for individuals.