This phrase is used to suggest that one should live within their means or not spend more than they can afford. It is saying that one should stretch their feet only as far as the blanket covers.
Examples
- Spanish: No puedes seguir comprando cosas caras si no tienes el dinero. Hay que estirar los pies hasta donde llegue la sábana.
- English: You can't keep buying expensive things if you don't have the money. You have to live within your means.