If you give a piece of cloth to a tailor to make a coat, the tailor will first measure the cloth and then decide what kind of coat has to be made out of it. He will not be able to make a coat that requires more material than the cloth provided. The same is the case with our expenses and income. Our expenses should always be within the limits of our income. Otherwise, we surely land in debit and difficulties. The proverb thus tells us not to spend more than what we earn i.e., to live within our means.
The proverb applies not only to individuals but also to business establishment. Of course, a company may raise a loan to expand or diversify its business. But it must do it judiciously; otherwise it will be in deep trouble. Even the government of a country has to keep in mind its total resources while spending.If it does not do so and goes on borrowing recklessly from the people and from foreign countries, it would become bankrupt one day, and come to grief.
So the proverb is of universal application. It teaches us that our actions should suit the circumstances or resources. The wisdom of the proverb would guide everybody to live and work within their means and to avoid possible shame or punishment resulting from living beyond their means.