What does overspending mean?

Overspending refers to the act of spending more money than one can afford, which aligns with the concept of spending beyond financial means. This situation often occurs when individuals do not adequately limit their purchases, leading them to incur debt or deplete their savings. Overspending can arise from impulse buying, lifestyle inflation, or failing to adhere to a budget, which ultimately impacts an individual's financial health. Understanding overspending is crucial for managing personal finances effectively and ensuring long-term financial stability.

The other options illustrate positive financial behaviors, such as prioritizing essential items, saving money, or maintaining a balanced budget, all of which contrast with the idea of overspending.