This hadith is one of many which gives us an insight into the compassion, genius and truth to the messengership of the Prophet ﷺ.
He lovingly advises one of his companions with only a few words, however, the comprehensiveness of this advice covers all of the rights that an individual must attend to.
In one short statement, the Prophet ﷺ covered the rights of Allah over us, the rights of an individual upon themselves and the rights of other individuals over us.
A few gems we can take from this hadith are:
1. As believers we should always be conscious of ALLAH, irrespective of the circumstance. Placing the pleasure and obedience to ALLAH first and foremost in every decision and situation.
2. Even a person of taqwa may slip and commit sins. However, we should never persist in those sins (no matter how seemingly small). Instead, we should follow them up with good deeds that will wipe them away by the grace, mercy and generosity of Allah.
3. An essential characteristic of taqwa is to behave with people in a good manner. We should behave towards others in a way that pleases ALLAH and in the manner we would like for them to behave towards us
(Commentary on the Forty Hadith of Imam An-Nawawi by Sheikh Jamal Al-Din Zarabozo, vol. 1)