"Money is useless if you don't spend it."Though it certainly seems that the main purpose of money is for spending (you know, to replace the barter system), I think it is a dangerous statement in today's world of rampant debt, bad mortgages, and layoffs. Not that I really believe in amassing huge fortunes, but I would like to propose a list of other uses for money.
- Safety blanket. Having money stored away helps you keep moving with your life if you are laid off, victim to some disaster, or otherwise confronted with unexpected changes.
- Options. It's hard to make good financial decisions when you don't have a choice how to proceed, and having some money stored away gives you more options. Finance a purchase, or pay up-front and interest free?
- Independence. This one really springs from the first two I mentioned. If you have money stored away and some need comes up, you can handle it yourself instead of taking out a loan and making yourself dependent on someone else.
- Investment. I already said I'm not a big fan of amassing huge fortunes, but look: having kids is going to be expensive. So is buying a new car or house. Retirement is really expensive. You need money to invest money, and you have to invest just to stay ahead of inflation.