Which term describes the process of spending more than one's income?

The correct term that describes the process of spending more than one’s income is dissaving. Dissaving occurs when individuals or entities utilize savings or incur debt to finance their expenditures, indicating that they are consuming beyond what their current income allows. This often results in a decrease in savings or increase in liabilities, which can impact financial stability over time.

In contrast, saving refers to setting aside a portion of income for future use, while investment generally pertains to allocating resources toward assets or ventures with the expectation of generating a return. Consumption involves purchasing goods and services but does not explicitly convey the notion of exceeding one’s income. Therefore, dissaving accurately captures the concept of spending beyond one's means.