Sometimes the hardest thing about saving is just getting started. This guide on how to budget and save money can help you develop a simple and realistic strategy that meets your needs.

Begin with expense tracking. The first step to start saving money is figuring out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip, as well as regular monthly bills. Record your expenses however is easiest for you—a simple spreadsheet, free online spending tracker or app, or even pencil and paper. Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount. Use your credit card and bank statements to make sure you’ve included everything.

Make savings a monthly expense. Now that you know what you spend in a month, you can begin to create a budget. Your budget should show what your expenses are relative to your income, so that you can plan your spending and limit overspending. Be sure to factor in expenses that occur regularly but not every month, such as car maintenance. Include a savings category in your budget and aim to save an amount that feels comfortable to you. Plan on eventually increasing your savings amount to up to 20 percent of your income.

Economize on wants. If you can’t save as much as you’d like, it might be time to cut back on expenses. You can get ideas on where to cut by seeing how your spending compares with everyone else’s.

First identify nonessentials, such as entertainment and dining out, that you can spend less on. Then look for ways to reduce your fixed monthly expenses, such as your car insurance or cell phone plan. Other ways to save money every day include:

Use goals to make saving meaningful. Working toward specific goals can be one of the most effective ways to save money because it puts a reward or accomplishment in sight. Start by thinking about what you might want to save for—both in the short term (one to three years) and the long term (four or more years). Then estimate how much money you’ll need and how long it might take you to save it.

An if/then plan is an exercise that can help you reach your savings goals. It helps you anticipate potential obstacles and then plan specific actions to address them. Here’s how put one together.

Learn how to prioritize your savings goals to gain a clear idea of how to allocate your savings. After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. For example, a common budgeting question is whether to pay down debt, save or invest. This interactive tool can help you decide.

Or let’s say you know you’re going to need to replace your car in the near future. You could start putting away money for a new vehicle now. Just be sure to incorporate long-term goals, too. It’s important that planning for retirement doesn’t take a back seat to shorter-term needs.

Put your savings to work. There are many savings and investment accounts suitable for short- and long-term goals. And you don’t have to pick just one. Look carefully at all the options and consider balance minimums, fees, interest rates, risk and how soon you’ll need the money. This information will help you choose the mix that works best for your goals.

Many employers offer a number of benefits that can save you money and help you save. Chief among them are 401(k) plans, which allow you to make automatic contributions from each paycheck to a retirement plan. The contributions come out of your paycheck before taxes are withheld, and any investment earnings are not taxed until you withdraw them. A portion of each contribution is often matched by the employer. Other pre-tax benefits include Health Savings Accounts and Flexible Spending Accounts, which help you to set aside money for medical and child-care expenses.

Review your budget and check your progress every month. That will help you not only stick to your personal savings plan, but also identify and fix problems quickly. Understanding how to save money may even inspire you to find more ways to save and hit your goals faster.