Financial planning should aim to give you what you want without giving up a comfortable life. But people often make purchases without thinking through the financial consequences. So your spending plan should precisely define and include your financial obligations and living costs. Spending less than you earn is the only way to reach your long-term financial goals. Everyone spends differently, but it helps to split expenses into two broad groups, fixed and variable. Payments that don't change from month to month are called fixed expenses. Mortgage and rent payments, and service fees such as cable and TV, belong in this group. Flexible expenses that change every month are called variable expenses. Common examples are money spent on food and clothing, utilities such as electricity and phone service, medical costs, and gifts. Once you know your income and expenses, work out the difference between them. Your cash flow can come out positive or negative. If your expenses for the month are larger than your income, you have a deficit. You can cover a deficit by drawing on your savings, taking out a loan and so on. When your income is larger, you have a surplus, which you can put toward investments, savings and the like. That is why tracking your income and expenses is the foundation for carrying out your investment and savings plans. This guide to building healthy money habits is brought to you by HabiDo and Zeely.