What does it mean to live by faith according to the Bible?

In Habakkuk 2:4, it is declared, 'the just shall live by his faith,' a foundational principle that the New Testament reaffirms. Living by faith translates to a complete dependence on God's sovereignty, grace, and righteousness. It requires believers to trust in God’s promises, even when circumstances seem dire, as exemplified by Habakkuk's unwavering assurance in God amidst impending judgment. This faith is not merely intellectual assent but an active trust that manifests in obedience and perseverance in trials, assuring believers of God's faithfulness to fulfill His word. Hence, living by faith functions as both a way of life and a lens through which believers perceive their relationship with God and His workings in their lives.