What is a consequence of spending more than you make?

Spending more than you make directly leads to debt accumulation, which is a critical aspect of personal finance management. When expenditures exceed income, individuals typically resort to borrowing to cover the difference, which can result in credit card debt, loans, or overdrafts. This not only can impact overall financial health but also leads to potential long-term repercussions, such as poor credit scores and increased interest payments.

Accumulating debt can create a cycle of financial instability, making it challenging to achieve future financial goals, maintain an emergency fund, or save for retirement. This understanding highlights the importance of living within one's means to ensure financial well-being and stability.

Building credit and increasing savings generally occur through responsible financial practices, such as timely bill payments and effective budgeting. These outcomes are unlikely when consistently overspending. Thus, while some answers may suggest positive outcomes, they do not align with the reality of financial management when one's spending exceeds their income.