1. Budget Preparation and Management

2. Managing a Budget Stressed guy looking at pile of money?
Managing a training budget can be a cause for anxiety and stress. However if you think of it in terms of time, money, and resources used during a specified period, and maybe profit in some cases, it becomes a bit more simplified. A budget is required for you to have an understanding of the time, resources, and costs associated to achieve your objectives. In other words, it is a tool to assist in allocating how much time and money you need to implement your objectives so that your audience is motivated to change unhealthy behaviors and improve their lifestyles. It serves to manage resources efficiently as well as determine the feasibility of some programs. In some cases, the amount of money and time invested may be quite significant. However, the potential impact of new healthy attitudes, skills, and behaviors will likely be worth the added expense. The upfront budget may be significant, but it will be justified because the long-term benefits will be significant.

3. Budgets INCOME EXPENSES
If your program will earn income, then the budget will include income and expenses. The budget will be a useful tool to monitor expenses and therefore maximize income generated. The budget also assists you in making appropriate decisions on resource allocation. If you receive funding from an external source, preparing and managing a budget will show how the funds were utilized.

4. Steps for Creating a Budget
Identify resources
Calculate expenses
Identify sources of income
Calculate income
Calculate projected profit or loss
To prepare a budget, you must first develop your training plan. Once that is accomplished, you can follow these steps to get started on your budget.
Identify your training resources. This includes supplies, materials, handouts equipment, tools, and any other resources that you will need to purchase or rent to deliver your program.
Calculate the expenses associated with training resources. This will include your training materials, marketing, venue, refreshments, and special guests. You may also have to consider expenses associated with travel,
Identify your sources of income; is the program subsidized or will your participants be paying out of their pockets? Sources of income can come also from donations, fundraisers, and sale of products.
Calculate your total income.
Calculate projected profit or loss.

5. Budget Template Expense Unit Cost Quantity needed Total Expense
Handouts $1 20
$20
Marketing
$300
Refreshments
$.50 35
$17.50
Training Venue
$500
Total
$837.50
There are many templates that you can find online that will help organize your expenses. Here’s a simple example:

6. Expense Categories Expense Unit Cost Quantity Total Expense
Training Supplies
Handouts
Pens
Transport
Gas
Tools
Projector
Computer
Refreshments
Coffee
Snacks
Total Costs
You can even categorize these expenses. In this case, it may look something similar to this:

7. Profit= Income - Expenses
Profit Formula
Profit= Income - Expenses
Based on what these costs look like, you would need to have at minimum, enough income to cover these expenses. So for example if your costs were $2000, then you should have $2000 or more in income. If you are seeking profits from your health education course, then to determine if you would earn profits or suffering a loss, you will use the formula Profit= Income – Expenses.
So for example if your total income from all your sources were $5000 and your total expenses were $2500, then your profit would be $5000-$2500=$2500.
Profit= $5000- $2500
$2500 = $5000- $2500

8. Loss
?= $ $ 5000
Suppose on the other hand, your income was $2500 and your expenses $5000 then you would have a loss of $2500 ($2500-$5000).You will always suffer a loss if your expenses exceed your income. This is why it is important to create a projected budget prior to implementing your program. If your budget shows a loss, you may need to reconsider your expenses, seek additional funding, or a combination of both. Typically, you will start by evaluating your expenses and looking for ways to reduce these. You may need to seek alternative products or venues. For example if you had intentions to produce laminated and bound color handouts, you may need to consider producing in black and white in a simple folder. Another example, let’s say you considered hiring two additional speakers, you may want to consider utilizing one, or negotiating lower fees.
LOSS
$2500

9. Variances
Once you have planned a projected budget and implemented your program, you may find in some cases that your actual budget was above or below your projections. If your income or expenses were skewed from your projections, you will need to determine why the difference and look for ways to prevent it, especially if it was a loss. Understanding the reasons for variances will help manage costs and income for subsequent programs.

10. Summary
A budget is essential to any community health education program, regardless of whether you are seeking profits or not. Without the budget, you may end up wasting time and resources or dedicating too much in comparison to the program’s impact. The budget will help maintain accountability to your sources of funding and help you make appropriate decisions on additional resources.