Creating a budget is an excellent way to monitor your expenses, control your spending, and become better acquainted with your habits. Often, it takes a tight regimen to truly tap into why your situation is the way that it is — and what you can do to improve it.

If your goal is to reduce your debt, for example, then setting up a budget is crucial because it will force you to allocate your expenses towards particular items. If you’re simply focused on being a smarter spender, then you can glean plenty of information from your budget about where your dollars are actually going, and whether or not it’s really worth it! Here’s how to stick to a budget.

Pull All Your Financial Documents

The first thing you need to do is determine just how much your income is. If you’re spending beyond your means, this will be an enlightening step that will help you make quick changes. Gather all your financial documents so you can arrive at this figure, whether you need pay stubs or digital records of online payments. If you have a steady, full-time job, make sure to include information from any side hustles you might have. The total of all these sources of income is your post-tax earnings for the year.

Write Down All Your Expenses

You need to be honest with yourself at this stage. “Expenses” are the services and items you and your family absolutely need — not necessarily what you want. First jot down everything that is simply carved in stone, like your monthly utility bills, mortgages, insurance, health care, and car payments, among others. These are your “fixed” expenses, and they’re non-negotiable. But you likely have quite a few flexible expenses in the mix, too, including subscriptions to streaming services, online orders, and general entertainment. These are the variables you can safely remove without worry.

Evaluate the Two Totals

Again, it’s honesty time. Compare your total expenses and your total income. If you see an enormous variation between the two, then it’s time to reconsider what you’re spending on and how much you want to spend at all. It could be that your goal is ultimately to spend as little as possible, or it might be that you need to reallocate your funds in a way that best benefits your family. If you need to, slash a few of the variable costs until you’re able to afford them comfortably. You can’t enjoy frivolous expenses if you know you’re falling deeper in the hole because of them!

Automate Your Payments

One way to easily stay on top of your payments is to automate them so the money comes directly out of your chosen account on time every month. It’s easy to fall behind when one missed payment turns into two and so on, so it’s best to make this a priority, especially if you’re concerned about the occasional missed payment. That can cause your credit score to take a beating, so it’s crucial to be mindful of every single one.

Review the Budget Periodically

You’ll need to make adjustments to your budget from time to time. Neglecting to update it as needed will backfire because the budget is only as good as the information you include. If your professional situation has changed, for example, you’ll need to plug in the new numbers that affect your monthly or annual earnings. If you’ve moved and have more household needs, you’ll need to review it thoroughly. The more attention you give to your budget, the more likely you are to stick to it in the end.