Project Budgeting 101: Your Guide to Producing Your First Project Budget

Every project needs a budget. But you’re a Project Manager, not an accountant. So, most Project Managers find the thought of producing their first project budget daunting. Here, then, is my basic guide to Project Budgeting.

We look at 3 Approaches:
1. Activity, or Cost Center Budgeting
2. Work Breakdown Structure Approach
- How to Create a Work Breakdown Structure: A WBS Masterclass
3. RACI Chart Approach – aka Linear Responsibility Chart
- How to Build a RACI Chart

Whichever process you use, there are two additional things to always include:
1. Whole Project Costs
2. Contingency

Recommended Videos
Carefully curated video recommendations for you:
🎬 How to Estimate Project Costs: A Method for Cost Estimation
🎬 How to Anticipate Future Budget Challenges to Your Project
🎬 What to do When you get Pressure to Reduce Your Project Budget
🎬 How to Deliver Effective Project Cost Management
🎬 Don't Let Your Project Get Caught in the Cost Trap
🎬 Project Cost Management and Self Preservation
🎬 Project Financial Management - 5 Tips for Good Project Cost Control

🎒 A while back, I asked Project Managers in a couple of forums what material things you need to have, to do your job as a Project Manager. They responded magnificently. I compiled their answers into a Kit list.
Note that the links are affiliated.

⏱ Chapter Markers...
00:00 - Project Budget 101
00:25 - Three approaches to creating a Project budget
00:51 - Activity - or cost-center - budgeting
02:23 - Work Breakdown Structure Budgeting (WBS Budgeting)
06:39 - RACI Chart Budgeting - or LRC Budgeting
11:13 - Whole-Project Costs
12:33 - Contingency
15:38 - Summing up Project Budgeting

#ProjectBudgeting #ProjectManagement #CostManagement

[Onlinepmcourses]

In this video, I describe three ways to prepare a project budget.

Thank you for watching. Please support the channel and all the free content I provide. 
- Like, comment, and subscribe to the channel. 
- And to show maximum appreciation, use the $ Thanks button, under the video, to make a small donation with a highlighted comment.

[TEverettReynolds]

Who knew there were so many different ways to create a budget for a project. I have only ever used the WBS to CBS method, but it was nice to see the other methods. Thanks Mike!