What does "not living up to your full potential" mean to you?
In the literal sense of doing what you want or are able to do.
It would have to be defined by context. Is a person living up to their full potential by making a choice to do one thing when they could do another? Are they fulfilling their potential in the choice they do make? The concept can't be taken too literally because one could wind up thinking that they can't do anything but one thing if they are to fulfill their potential in it, or they may think they must do too many things in order to live up to their full potential. Perhaps doing as well as we can in everything we do is enough.
It means one chose not to invest time developing their natural talents or skills to live a more fulfilling life. In other words (they) feel they "settled". It's knowing or feeling you didn't do all you could do that keeps you from truly experiencing happiness.
"I can accept failure, but I can't accept not trying."
- Michael Jordan
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