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In this video, hosts Hope and Larry discuss the concept of living below your means, clarifying what it truly entails. They explain that it means having money left over after covering all expenses and making a conscious decision to spend less than you earn. Living below your means ensures that outgoing expenses remain less than incoming income, which leads to reduced stress and a more relaxed lifestyle. The video also offers practical steps to achieve this and includes a real-life example to illustrate the benefits and approach to frugality.