Dissaving

AAA

DEFINITION of 'Dissaving'

Spending an amount of money greater than available income. Dissaving is considered the opposite of saving, and can include tapping into money already in a savings account or accumulated elsewhere. An individual may also borrow against future income by taking out a loan or using credit cards. Dissaving can continue to the point where an individual's income, savings and available credit are all exhausted.

INVESTOPEDIA EXPLAINS 'Dissaving'

An individual might experience a period of dissaving for a number of reasons. Events within the control of the dissaver may include making too many big ticket purchases in a short time frame, taking an expensive vacation or generally living outside of his or her means. Events outside of the dissaver's control, such as unemployment, may require the individual to tap into reserves even if the individual greatly reduces consumption. In the case of unemployment, disposable income from a salary no longer exists, though obligations may still require payment (rent, loan payments and so on).

RELATED TERMS
  1. Autonomous Consumption

    The minimum level of consumption that would still exist even ...
  2. Credit Limit

    The amount of credit that a financial institution extends to ...
  3. Emergency Fund

    An account that is used to set aside funds to be used in an emergency, ...
  4. Credit Card

    A card issued by a financial company giving the holder an option ...
  5. Savings Account

    A deposit account held at a bank or other financial institution ...
  6. Disposable Income

    The amount of money that households have available for spending ...
Related Articles
  1. Budgeting

    How Much Debt Can You Handle?

  2. Savings

    10 Tips For Achieving Financial Security

  3. Options & Futures

    Top 5 Budgeting Questions Answered

  4. Options & Futures

    Increase Your Disposable Income

Hot Definitions
  1. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  2. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  3. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  4. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  5. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  6. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
Trading Center