Just because nobody spends the money doesn't mean nobody benefits.
If I've got a bunch of money in my account that I'd rather not spend, because I want to keep it for a rainy day, I can still spend the dividends. I can also spend more of my income, if I'm satisfied that the bulk amount is enough that I no longer need to save more for emergencies. I can also be less worried about increasing or even maintaining my income; so I can find a job that makes me more happy instead of one that makes me more money; or work less hours or retire earlier.
Having a target dollar amount for savings and not just increasing it without reason does help maintain perspective though. In my mind, from a very priviledged place, I'd like to be able to pay for long term memory care for several years, even in the face of a market crash and high inflation. Anything more than that, is kind of silly to retain; but I'm still frugal, so spending freely isn't spending frivalously.
If I've got a bunch of money in my account that I'd rather not spend, because I want to keep it for a rainy day, I can still spend the dividends. I can also spend more of my income, if I'm satisfied that the bulk amount is enough that I no longer need to save more for emergencies. I can also be less worried about increasing or even maintaining my income; so I can find a job that makes me more happy instead of one that makes me more money; or work less hours or retire earlier.
Having a target dollar amount for savings and not just increasing it without reason does help maintain perspective though. In my mind, from a very priviledged place, I'd like to be able to pay for long term memory care for several years, even in the face of a market crash and high inflation. Anything more than that, is kind of silly to retain; but I'm still frugal, so spending freely isn't spending frivalously.