I.E. You can be worth a million and might not be able to pay your bills without spending the capital!
Maybe in California, but in Texas spending over $200k on real estate and you start to get into all the house most people ever want.
Besides, a million dollars isn't what most people think it is. It most certainly isn't so much wealth that you no longer have to worry about working -- nowhere near it in fact. It might be enough to retire on if you don't live too long.
Land rich and cash poor. George Washington had that problem.