Usually people have specific conditions under which they would like to live, and have specific goals they want to achieve for that to happen. For example, losing weight, getting fit, being debt-free, having a good romantic relationship, being a home owner, being able to travel whenever they want without being tied to a regular job. Any of those would probably be among the list of things that make an "ideal life" for most people. "Living your best life" means living under the conditions you consider to be ideal for you, or that you're at least satisfied with your progress towards meeting said conditions. It does not imply that anyone living their best life is free of stress or any emotional turmoil in their life, since that's a part of everybody's life regardless of the living conditions one is under.
"Once I pay off my mortgage, I'm going to start living my best life."
"I'm living my best life since I became a digital nomad, and now I'm able to live wherever I want."
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