What does it mean to live within your means?

Living within your means refers to the practice of managing your finances in such a way that your expenditures do not exceed your income. This concept is essential for maintaining financial stability and avoiding debt. When you spend equal to or less than what you earn, you can cover all your necessary expenses while still having the ability to save and invest for the future. This approach promotes responsible financial habits and helps in building a secure financial foundation.

The other options refer to different behaviors that do not align with the principle of living within your means. Consuming luxuries regardless of income suggests overspending and can lead to financial difficulties. Saving more than you spend speaks to the importance of saving but does not clearly define the balance of income and spending necessary to live within your means. Borrowing only for investments could have merit in specific contexts but does not capture the essence of managing daily expenses in relation to income.