[Your Nightmare]

Savings can also be a base from which to accumulate wealth.

Wealth that's only value is in what it can buy when spent.

Savings can also be an emergency fund and create peace of mind.

I assume this emergency fund would be spent in case of an emergency. Correct?

Savings can be passed on the future generations.

And they might as well be Confederate dollars if they aren't spent.

Savings can be collateral for leveraging in your business or personal accounts.

Acquiring debt is considered "negative" savings. You are effectively spending your savings.

[groanup]

Acquiring debt is considered "negative" savings. You are effectively spending your savings.

Acquiring debt can also be "positive" savings. How else are you going to build luxury condo's for sale? What if all of your savings is in rental property? You've spent it right? Debt for investment sake is good and the amount of debt you are able to acquire can be directly dependent on your savings. It's easier to borrow against a CD than against a house that hasn't been built.

[lucysmom]

I assume this emergency fund would be spent in case of an emergency. Correct?

The FairTax, savings untaxed except in case of emergency - not a pretty picture. Imagine all those Katrina victims providing windfall revenue to the government coffers.