Why is this what matters: faith working through love?

In my young adult and men's group our topic this week as a gospel centered community is found in Galatians 5

For freedom Christ has set us free; stand firm therefore, and do not submit again to a yoke of slavery. Look: I, Paul, say to you that if you accept circumcision, Christ will be of no advantage to you. I testify again to every man who accepts circumcision that he is obligated to keep the whole law. You are severed from Christ, you who would be justified by the law; you have fallen away from grace. For through the Spirit, by faith, we ourselves eagerly wait for the hope of righteousness. For in Christ Jesus neither circumcision nor uncircumcision counts for anything, but only faith working through love. You were running well. Who hindered you from obeying the truth? This persuasion is not from him who calls you. (Galatians 5:1-8 ESV)

Particularly 

For in Christ Jesus neither circumcision nor uncircumcision counts for anything, but only faith working through love. (Galatians 5:6 ESV)

What does that mean? 

How does that apply to the gospel and to us.

What does it look like for faith to be worked out through love?

Who is that love being worked out towards?

How is this different from works based salvation?