Creating and following a budget puts you on stronger financial footing, making it easier to pay bills on time, build an emergency fund and save for larger expenses. It also helps eliminate debt-related anxiety that can cause you to lose sleep or experience outsized mood shifts.

To get started, first identify your critical costs. These include your rent or mortgage, utilities, food, transportation and insurance expenses. They will probably take up the largest portion of your budget and are often most difficult to cut back on because they are essential for survival.

Next, list your variable expenses, which are those that can vary from month to month like gas, entertainment and groceries. Finally, put down your discretionary spending, which is everything else that isn’t a necessity for living (and might even include some things you really want).

For many people, tracking their expenses can be eye-opening. It can reveal areas where you may be overspending and help you make adjustments to save money. For example, you might find that you spend a lot on coffee shops and restaurants when you can easily save money by bringing your own lunch to work or eating at home more often.

The most successful budgets are revisited regularly to reflect income changes, changes in expenses and new goals or needs. A monthly or quarterly review can help you fine-tune your budget and make the most of it for a brighter financial future.