Living by the Spirit involves allowing the Holy Spirit to guide and influence one's thoughts, actions, and decisions. This spiritual guidance liberates believers from the strictures of the law, which in the context of Paul's letter to the Galatians, refers to the Jewish law. The law was given as a guide, but it could not provide the power to live a righteous life. The Spirit, however, empowers believers to live in a way that naturally aligns with God's will.
This freedom is not an invitation to live without moral boundaries, but rather an invitation to live a life characterized by the fruits of the Spirit, such as love, joy, peace, patience, kindness, goodness, faithfulness, gentleness, and self-control. These qualities fulfill the essence of the law because they reflect God's character. Thus, being led by the Spirit means living a life that is pleasing to God, not through external adherence to rules, but through an internal transformation that aligns with God's desires.