Setting a budget is the first step to getting your spending under control, building a savings account, and paying down your debts. Here are five tips to setting a budget that works for you.

Add up your regular expenses. When setting a budget, the easiest place to start is with your regular expenses. Add up the amount you spend each month in rent, utilities, gas, insurance, mortgage payments, loan payments, groceries, and other recurring expenses. This will give you an idea of the lowest possible amount you’ll need to make to survive-your household budget.

Keep track of discretionary spending. It’s not unusual to spend a significant amount over your budget every month-and not even know what you spent it on. For a month, carry a notebook with you and make a note every time you spend money. At the end of the month, assess your spending. You may find that an unnecessary habit-like a daily latte or eating out every day for lunch-is costing you more than you realize.

Eliminate your credit card debt as soon as you can. When setting your budget, see if you can find room to reduce spending in other areas and raise the amount you put toward your debt each month. If you find an expensive, non-essential habit is costing you, put that money toward your credit card debt instead.

Pay yourself first. A savings account is an essential buffer against unexpected costs. If you don’t have one, you should put aside a set amount each month to build one. Start putting an amount you can afford-anywhere from 10% to 25%–of your monthly paycheck into a high-interest savings account. If you get into the habit of taking the money directly from your paycheck each month, you won’t miss it.

Look into debt settlement and debt management. If you’ve got a large amount of debt, it’s wise to look into a debt settlement or debt management program.

With debt settlement, a certified professional will negotiate with creditors on your behalf to get your payments reduced. These programs don’t just reduce the amount you pay each month-they can significantly reduce your overall debt, plus charges and late fees. These programs are often best for those who have an unmanageable amount of debt.

With a debt management plan, you work with a credit counseling agency that negotiates with creditors to get you lower interest and fees on your debt. In return, you agree to pay back the balance of your debt without taking out any more loans. These programs are well suited to those who have the financial resources to pay back their debt, with careful budgeting.

Controlling your spending isn’t easy. But with careful budgeting, it’s definitely possible. Keep track of your expenses and set a budget that allows you to pay back your debt and build a savings account. If you do, you’re likely to get richer and more financially secure than you did before-no matter how much you earn.