How to Create a Project Budget

About this video

• Video Title: How to Create a Project Budget
• Channel: Adriana Girdler
• Speakers: Adriana Girdler
• Duration: 00:08:58

Overview

This video provides a step-by-step guide on how to create a project budget. It emphasizes the importance of a clear budget for project success and outlines six key steps, from defining the project scope to monitoring and managing the budget throughout the project lifecycle.

Key takeaways

• Define Project Scope: Clearly understanding what the project entails is the foundational step for creating an accurate budget. A well-defined scope prevents budget overruns.
• Identify Direct and Indirect Costs: Differentiate between one-time costs directly tied to the project (direct costs) and recurring costs that may be passed on to the business (indirect costs).
• Identify Contingency Costs: Allocate funds for unforeseen expenses or risks that may arise during the project. This acts as a buffer to ensure the project's completion.
• Determine Budget Format: Collaborate with finance departments or senior management to use their preferred budget tracking and reporting formats.
• Allocate Budget to Specific Tasks: Break down the total budget and assign specific amounts to individual tasks or activities to maintain control and prevent overspending in one area.
• Monitor and Manage the Budget: Continuously track expenses against the allocated budget, report on spending, and make necessary adjustments or request additional funds if needed.