This means that it is better for people to mind their own business and to respect the privacy of others

Neighbours don't need to live in each other's pockets. The fence is there like a boundary line. Cross it only when you really need it.

You can also say, a good fence makes good neighbors. I guess it also means that if you don't build your fence too high, you can actually talk to the people living beside your house and not be looked at as snobby. But that's just an opinion. ;)

**Good fenceS make good neighbours.** Technically, if you mind your own business, and don't stick your nose in other people's private affairs, you will get along well with people.