What does it mean to live within your means?

Living within your means refers to managing your expenses so that they do not exceed your income. This concept emphasizes the importance of budgeting and ensuring that the money you spend on necessities and discretionary items is balanced by the income you earn. By spending less than or equal to your income, you can avoid debt accumulation and maintain financial stability, allowing for savings and investments in the future. It encourages responsible financial behavior, which can lead to greater financial security and freedom.

The other options highlight behaviors that involve financial strain or irresponsibility. Spending more than your income leads to debt, relying on credit indicates a need to borrow beyond one’s means, and investing savings in high-risk ventures without a solid financial base can jeopardize one's financial future.