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God is very direct in this verse. He is saying move away from foolish people and stop being foolish. What’s cool is He doesn’t just tell us to move away from something harmful but towards something fruitful! He next says to live fully by walking in the way of insight and understanding. What does that mean for me? The simple version is to walk with God and do what He says.
If you are hanging with fools… stop. If your acting foolish… stop. Choose life… not death. Walk with God. Reflect on His Word and His ways and ask for wisdom and understanding.