What does "living within your means" emphasize?

"Living within your means" emphasizes managing your finances in a way that your spending does not exceed your income. This principle encourages individuals to be mindful of their financial limits, ensuring that they allocate their income effectively without incurring debt or financial strain. By spending less than or equal to what you earn, you can maintain financial stability, avoid unnecessary debt, and even set aside savings for future needs or unexpected expenses. This practice fosters a healthy approach to personal finance by prioritizing needs over wants and making informed choices about spending. It's a foundational concept in financial literacy that promotes sustainable living and responsible financial habits.