Step-by-step explanation:
Living below your means refers to spending less money than you earn and avoiding unnecessary expenses, so that you can save money and avoid debt. This is an important part of personal financial planning because it allows you to build up savings, which can be used to achieve financial goals such as buying a house, starting a business, or retiring comfortably. Living below your means also helps you avoid financial stress and uncertainty by providing a buffer against unexpected expenses or changes in income. By being mindful of your spending habits and focusing on saving and investing, you can create a more stable and secure financial future for yourself and your family.