What does it mean to live within your means?

Living within your means refers to the practice of managing your financial resources in such a way that your spending does not exceed your income. This means that you budget your expenses to ensure they are less than or equal to what you earn, allowing you to avoid debt and financial stress. By adhering to this principle, individuals can maintain financial stability, save for future goals, and create a cushion for unexpected expenses.

This approach also promotes responsible financial habits, such as prioritizing needs over wants and making informed decisions about discretionary spending. It encourages a mindset of planning and accountability in one's financial management, which is essential for long-term financial health and security.

In contrast, the other options illustrate behaviors that undermine financial stability, such as overspending, accumulating debt, or investing all income without regard for risk, highlighting the importance of living within one's means in building a secure financial future.