What does "living within one's means" refer to?

"Living within one's means" refers to the practice of spending less than or equal to one’s income to avoid accumulating debt. This financial principle emphasizes the importance of balancing income and expenses to maintain financial stability. By spending within one’s means, individuals can avoid the pitfalls of debt, such as high interest payments and financial stress. This choice highlights prudent financial management, which is crucial for building savings, achieving financial goals, and ensuring long-term economic health. Adhering to this principle not only fosters responsible budgeting but also encourages individuals to make informed decisions about their expenditures.