A money principle to keep in mind is to live on ____________ you make.

Living on less than you make is a foundational principle of sound personal finance. This approach encourages individuals to spend wisely while prioritizing savings and investments. When you live beneath your means, you create a financial cushion that can help cover unexpected expenses, reduce stress, and enable you to build wealth over time. It also allows for flexibility in your financial planning, giving you the freedom to allocate money towards savings goals, debt repayment, or retirement accounts.

This principle essentially promotes budgeting and financial discipline, which are crucial for achieving long-term financial health. By ensuring that your expenditures do not exceed your income, you can avoid debt accumulation and foster a habit of saving, which is vital for reaching financial objectives such as home ownership, education, or retirement.

Other options suggest living at or above one's means, which could lead to financial difficulties, increased debt, and a lack of savings. Living exactly at your income level can also be precarious, especially in the face of emergencies or economic downturns. Therefore, focusing on spending less than you earn helps build financial security and a more stable future.