4- Big purchases like cars, house, or equipments wouldn’t be easily to be bought without any saved amount as sometimes they might constitute of more than 1.5 times of the monthly salary.
Buying big purchases fills the satisfaction of the buyer depending on his/her preferences and willingness, leading to an improved well-being situation.
5- Accumulating wealth or increasing the cash reserves also help invest some money at the bank where the investor would be getting a certain interest rate on his/her saving account.
Dissaving was reported as a typical response to deficits, for households with normal income and expenditure patterns during the depression of the 1930s.
Massive dissaving to consumption can also lead to inflation risks if the production of consumer goods is not sufficient to meet new demand.
Still, periods of dissaving occur when they face a health problem, or when unemployed with a higher household expense rate.
If responsible, middle-income people often save as much as they can during their working life; then when they face a health shock or begin collecting a small pension in their old age, they will have the wherewithal to activate a moderate dissaving to ameliorate a financial shortcoming.
As their investments are drained and the consumption rate maintains or grows with greater health care costs, dissaving begins to take place.
In many cases, when savings are limited, and when dissaving is chronically exhausted from a long-term challenge, an individual's solvency in society can rapidly destroy the quality and standard of life as their situation spirals down into desperate circumstances and deprivation.
Dissavings can also occur on the macroeconomic level, that’s when the government tend to spend all the accumulated savings and the available funds, specially when a natural disaster happens such as an earthquake, wildfire, or hurricane.
The consequence of this forced unpaid leave is that these employees started to dissave just to keep up with their daily living expenses and basic obligations, even if it wasn’t their fault.
This phenomenon is undoubtedly explained in part by the concern to pass on wealth to subsequent generations as well as to cover unforeseen health expenses.