Here's a breakdown:
* Cut your coat: This refers to making plans or spending money.
* According to your cloth: This refers to your financial resources, or how much money you have.
In other words, you should only make plans or spend money that you can afford.
Here are some examples of how the saying can be used:
* "I'd love to go on a fancy vacation, but I need to cut my coat according to my cloth. I can't afford it right now."
* "We're trying to buy a new house, but we need to be realistic and cut our coat according to our cloth. We need to find something that fits our budget."
The saying is a reminder to be practical and responsible with your money. It's important to avoid overspending and to make sure that your expenses align with your income.