Planning an event is quite an exciting endeavor but one of the essential aspects of event planning is focusing on budgeting. Are you planning a corporate conference? Is it a wedding or is it a charity fundraiser? Understanding how you distribute the expenses and how you track them is necessary for financial success. Have you ever wondered how you can create a foolproof event budget that will keep all the expenses under control while at the same time giving you an unforgettable event experience. 

This is a road map that will help you walk through the event budget breakdown, helping you with budget allocation and also giving you financial planning tips to ensure that your event stays within a budget while making sure it meets all your event goals.

Step 1-Decide your budget

Before you understand a specific expense it is necessary for you to first find out event funding to understand event cost breakdown. Firstly, find out where to bring the funds. If it is a personal investment you have to have a budget that is realistic in case you have the opportunity of partnership and sponsorship then you can find support. Nonprofit events can depend on donations and grants. 

 Step 2- Breaking down your event categories 

Breaking down the cost into various categories can help you visualize where exactly your money is going. You can keep-

• 30 to 40% budget for your venue 


 

• 20 to 25% budget for catering and refreshments 


• 10 to 15% into marketing and promotion 


• 10 to 15% should be kept for entertainment and speakers


• 10 to 15%  into staffing and management 


• 5 to 10% is necessary for miscellaneous or contingency situations  


 

Having 10% for emergencies is necessary because no event can go 100% exactly the way you have planned so you need to have some emergency funds ready to keep the event budget intact. 

 Step 3- Tracking budget

Tracking your budget in real-time will prevent shocking surprises and also make use of budget tracking tools for understanding event cost breakdown. Use detailed spreadsheets to understand the budget. Make use of event management software that has built-in budgeting features. Certain mobile applications help you track every expenditure. Do keep asking questions to yourself whether you are spending more on a particular category and then you can adjust it by maintaining a balance.

 Step 4-Make use of budget templates for more effective budgeting

Event financial planning from scratch can seem to be an overwhelming task- so why not use budget templates for proper planning? 

Many platforms do offer customizable budget templates that help you generate reports by inputting costs and automating calculations for budget allocation. Using  budget templates will not only save time but will also make sure you do not overlook critical expenses. 

 Step 5- Understanding event cost management

If you have a tight budget then these event cost management tips can help you with budget allocation-

• Negotiate with the vendors for discounts or bulk purchases


•  Hunt for sponsorships because many brands would want to collaborate with your events 


• Look for volunteers instead of hiring staff for particular event roles.


• You may also go for DIY decoration because outsourcing décor might be costlier so you can handle some decoration aspects in-house. 


 

Develop proper understanding of budget for best event financial planning and event success. 

 Step 6- Optimising your budget 

After completion you must have a final financial review for event cost management-

• Comparing planned versus actual expenses


• identifying those areas where you have spent more on areas where you have saved some money 


• Talk to your team members to find out ways to improve your budgeting in the future


• Having a well-documented event budget will not only become an available resource for planning future events but will also make planning easy and more accurate


 

A well-thought-out event budget is the main source of successful events. Only when you focus on budget allocation, budget tracking and event cost management can you prevent financial shocks and it will give you a hassle-free event experience. 

What is the next event that you are planning? Try to use these tips for budgeting for events, and it will be a cause of your next financial success!