Learn the best ways to plan for unexpected expenses in an event budget and avoid financial headaches. These tips will help you create a realistic, flexible, and effective budget for any type of event.

The 80-20 rule always works for me in the planning phase. Aim to achieve 100% of your targets with 80% of your budget. If you do succeed, you've got the remaining 20% to help you exceed your goals!

What are the best ways to plan for unexpected expenses in an event budget?

Planning an event can be exciting, rewarding, and stressful. You have to consider many factors, such as the venue, the catering, the entertainment, the guest list, and the marketing. But one of the most important and challenging aspects of event planning is the budget. How do you estimate the costs of your event and avoid overspending? And more importantly, how do you prepare for unexpected expenses that might arise during the planning process or on the day of the event? In this article, we will share some of the best ways to plan for unexpected expenses in an event budget and help you avoid financial headaches.

Key takeaways from this article

Include a contingency fund:

Setting aside at least 10% of your budget as a contingency can be a lifesaver for those unexpected expenses. It's like having a financial safety net that ensures you're covered when surprises pop up.
Pre-approve large expenses:

Ensure any significant costs beyond a certain threshold need client approval. It's not just about avoiding sticker shock; it's about building trust through transparency and shared decision-making.

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1 Set a realistic budget

The first step to planning for unexpected expenses is to set a realistic budget for your event. This means researching the market rates for the services and products you need, comparing different quotes and options, and allocating enough funds for each category. You should also include a contingency fund of at least 10% of your total budget to cover any unforeseen costs or emergencies. A realistic budget will help you avoid underestimating or overspending on your event and give you a clear picture of your financial situation.

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Marie Loh

Digital Communications, Social and PR | Regional/Asia Technology, Engineering and B2B
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The 80-20 rule always works for me in the planning phase. Aim to achieve 100% of your targets with 80% of your budget. If you do succeed, you've got the remaining 20% to help you exceed your goals!

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Molly Klein

🗣️CEO of Perk Events | Corporate Event Strategist | Marketing Executive | Founder Coach
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The notion of asking for forgiveness instead of permission does not work in the events industry. A keen planner knows how to pad each section of a budget and to do research before quoting anything. Before giving a client an estimate, confirm confirm confirm!

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2 Track your expenses

The second step to planning for unexpected expenses is to track your expenses throughout the planning process. You should keep a detailed record of every payment, invoice, receipt, and contract you make or receive related to your event. You should also update your budget regularly and monitor your cash flow and spending patterns. Tracking your expenses will help you identify any discrepancies, errors, or oversights that might affect your budget and allow you to adjust accordingly.

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Molly Klein

🗣️CEO of Perk Events | Corporate Event Strategist | Marketing Executive | Founder Coach
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This is event planning 101. Meticulously tracking expenses is critical to keeping on top of your budget. Depending on the size and complexity of the event, you may find yourself needing to reconcile expenses daily - don't wait until just before (or even worse, after) and event to figure out how much you spent!

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3 Negotiate with vendors

The third step to planning for unexpected expenses is to negotiate with your vendors and suppliers. You should always try to get the best value for your money and look for ways to save costs or get discounts. For example, you can ask for a lower rate if you pay in advance, book in bulk, or provide referrals. You can also ask for flexible terms, such as cancellation policies, payment plans, or delivery options. Negotiating with your vendors will help you reduce your expenses and avoid hidden fees or charges.

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4 Communicate with stakeholders

The fourth step to planning for unexpected expenses is to communicate with your stakeholders, such as your clients, sponsors, partners, or attendees. You should keep them informed of your budget status, any changes or updates, and any potential risks or issues that might affect your event. You should also solicit their feedback and input and address their concerns or expectations. Communicating with your stakeholders will help you build trust and rapport, prevent misunderstandings or conflicts, and manage their satisfaction and loyalty.

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Molly Klein

🗣️CEO of Perk Events | Corporate Event Strategist | Marketing Executive | Founder Coach
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Communicating budget status and any large expenses is important to keeping a good relationship with your client. Nobody likes surprise charges! Proposals should always include a specific dollar amount that would need to be approved prior to purchase (i.e., any purchases over $X need to be approved by the client). Keeping steady drumbeat of budget updates shows that you're transparent and trustworthy.

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5 Have a backup plan

The fifth step to planning for unexpected expenses is to have a backup plan for your event. You should anticipate and prepare for any possible scenarios that might disrupt or derail your event, such as bad weather, technical glitches, vendor cancellations, or health emergencies. You should also have alternative options or solutions ready, such as backup vendors, equipment, venues, or speakers. Having a backup plan will help you cope with any unexpected expenses and ensure your event runs smoothly and successfully.

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Molly Klein

🗣️CEO of Perk Events | Corporate Event Strategist | Marketing Executive | Founder Coach
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It's important to frontload your event with as many worst case scenario quotes as possible. Meaning, add these in to your proposal and event budget as possible avenues as to minimize surprises. Of course you won't be able to predict EVERY possible issue, surprise or scope creep.

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6 Review and learn

The sixth and final step to planning for unexpected expenses is to review and learn from your event. You should evaluate your budget performance, compare your actual expenses with your projected expenses, and identify any gaps or areas for improvement. You should also collect feedback and testimonials from your stakeholders and analyze their satisfaction and engagement. Reviewing and learning from your event will help you improve your budgeting skills, avoid repeating mistakes, and plan better events in the future.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the best ways to plan for unexpected expenses in an event budget?

1

2

3

4

5

6

7

1 Set a realistic budget

2 Track your expenses

3 Negotiate with vendors

4 Communicate with stakeholders

5 Have a backup plan

6 Review and learn

7 Here’s what else to consider

Event Planning

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What are the best ways to plan for unexpected expenses in an event budget?

1

2

3

4

5

6

7

1 Set a realistic budget

2 Track your expenses

3 Negotiate with vendors

4 Communicate with stakeholders

5 Have a backup plan

6 Review and learn

7 Here’s what else to consider

Event Planning

Rate this article

Thanks for your feedback

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