making good decisions and judgements
Wisdom comes from the knowledge and experience gained in life. It allows to objectively assess the situation and make the right choices. It is also a mature way of looking at the world and other people.
Wise people can anticipate the long-term consequences of difficult decisions. They are always interested in expanding their knowledge.
Besides relying on your own wisdom, it's important to stay open to other people's wisdom. You can learn a lot from their experiences.