Dissaving
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. |
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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). |
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