How Much Should You Really Spend on Your Event? Here’s What Actually Matters

Planning an event is exciting—but let’s not pretend it isn’t a little overwhelming, too. Once you get past the Pinterest boards and inspiration reels, you start asking the big question:

“Okay... how much is this actually going to cost me?”

There’s no one-size-fits-all budget because no two events are exactly the same. But what you can do is approach budgeting with clarity, strategy, and a healthy dose of realism. We’ll walk you through how to set your budget, what to prioritize, and how to spend smart—without losing the fun (or your mind).

8 Steps To How to Set a Smart Budget for Your Event

Step 1: Set Your Total Budget First—Then Build Everything Around It

This is the foundation of your event. Before you look at venues or get lost in Instagram party inspo, decide on your total budget.

And we mean total—not “we’ll see how much it adds up to later.” Be honest about what you can afford, not just what you hope things might cost. Your future self will thank you.

Ask yourself:

• What’s my absolute max? (Not what’s “comfortable,” but the true ceiling.)
• Am I splitting this with anyone? (A partner, company, family member?)
• Is this budget flexible if something amazing comes up—or is it fixed?

Once you’ve got your number, you’re ready to start planning in a way that actually makes sense.

Step 2: Know the Purpose (And the Vibe) of Your Event

Every event has a goal—consciously or not. Maybe it’s to celebrate, impress, connect, thank, or promote. The purpose of your event should guide your spending.

Let’s break it down with a few examples:

• A product launch: You might want sleek branding, a professional venue, and strong AV support to wow clients or press.
• A kid’s birthday party: You’ll probably care more about entertainment (like a magician or bounce house) than renting a luxury location.
• A backyard wedding: The focus might be food, ambiance, and making it feel personal and intimate, rather than flashy.

Ask:

What do I want people to feel or remember after the event?

Once you know what matters most, you won’t get distracted by spending on things that don’t move the needle.

Step 3: Break Down the Budget by Category

Once you’ve set your total budget, divide it across key categories. These are typical percentages to help you plan:

• Venue & Rentals (30–40%)
  • Venue cost
  • Furniture, tents, lighting, AV equipment, staging
• Food & Beverages (25–35%)
  • Catering
  • Drinks (open bar, soft drinks, etc.)
  • Staffing (servers, bartenders)
• Entertainment (10–15%)
  • DJ or live band
  • Guest speakers or performers
  • Activity stations (e.g., games, photobooths)
• Décor & Styling (5–10%)
  • Flowers
  • Table settings
  • Signage, balloons, themed props
• Photography/Videography (5–10%)
  • Event photographer
  • Videographer (if you want a highlight reel or full coverage)
• Event Planner or Staffing (5–10%)
  • Event coordinator or planner
  • On-site staff for setup, breakdown, and coordination
• Emergency/Buffer Fund (5–10%)
  • Unplanned costs
  • Last-minute changes or fees
  • Price increases or overruns

These aren’t strict rules—adjust based on your event’s priorities. Spend more on what matters to you, and simplify the rest.

Step 4: Prioritize Your Must-Haves vs. Nice-to-Haves

You can’t have it all—but you can have what matters most.

Make a list of your top 3 priorities. These are the areas where it’s okay to spend a little more because they’re what you or your guests will actually remember.

Some examples:

• Killer food and cocktails
• An amazing DJ or band
• A photo booth or keepsake station
• The perfect venue with the right ambiance
• A unique guest experience (e.g., custom cocktails, themed activities)

Once your priorities are clear, the rest gets easier. If custom balloon arches aren’t high on your list, there’s no need to spend hundreds on them just because they’re trending.

Step 5: Consider Guest Count (It Affects Almost Everything)

The number of people you invite has a direct impact on your budget. Every guest increases costs across:

• Food & drinks
• Seating and tables
• Venue size
• Favors or giveaways
• Staff needed (servers, bartenders, etc.)

If your budget is tight, trimming your guest list is one of the fastest ways to save money without compromising quality.

Here’s a real-world example:

• 50 guests at $100 per head = $5,000
• 100 guests at $100 per head = $10,000

Cutting 20 people might not feel huge socially—but it could save you $2,000+.

Step 6: Be Ready for Hidden Costs (Because They’re Inevitable)

Even the best planners get hit with surprise charges. Some of the most common ones:

• Service fees: Venues and caterers often add 18–25% on top of your bill.
• Setup & breakdown fees: Especially for furniture or tech rentals.
• Overtime fees: For venues, DJs, or photographers who stay past contract time.
• Delivery charges: For everything from floral arrangements to furniture.
• Permit or insurance fees: Especially for outdoor events or larger public spaces.

That’s why it’s essential to leave 5–10% of your budget unallocated for the unexpected. Treat it like a safety net you hope not to use—but you’ll be glad it’s there.

Step 7: Don’t Overspend Where It Doesn’t Count

Let’s bust a myth: spending more doesn’t always mean a better event.

Yes, you can drop $50k and throw an amazing party—but you can also spend $5k and do the same if you’re smart about where it goes.

What actually makes an event memorable?

• A personal touch (customized elements or thoughtful moments)
• Music and energy that match the crowd
• Good food—doesn’t need to be gourmet, just good and plentiful
• A well-paced event (not too long, not too rushed)
• Comfort: enough seating, shade if outside, and easy flow

Guests don’t walk away thinking, “Wow, that linen was definitely 600-thread count.” They remember how they felt.

Step 8: When to DIY and When to Hire Help

Doing it yourself can be a great way to save money—but it can also turn into a full-time job and a source of stress.

DIY makes sense when:

• You enjoy hands-on projects (designing invites, making centerpieces)
• You have time to prep and set up
• You’re working with a smaller, more casual event

Hire a pro when:

• Your event has multiple moving parts (multiple vendors, timeline, big guest list)
• You don’t want to be working during the event
• You want the event to feel polished and seamless

If you hire a planner, they’ll often save you money by negotiating with vendors and avoiding rookie mistakes—so don’t assume they’re only for big-budget events.

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Real Budget Examples (Ballpark Figures)

Here’s a rough idea of how much different types of events could cost at various budget levels:

Small Birthday Party (20 guests at home)

• Budget: $500–$1,000
• Spend on: Food & drinks, simple decorations, fun music playlist, maybe a themed cake or entertainer

Backyard Wedding (50 guests)

• Budget: $5,000–$15,000
• Spend on: Rentals (tent, tables, chairs), catering, music, lighting, officiant, photography

Corporate Cocktail Event (100 guests)

• Budget: $10,000–$25,000
• Spend on: Upscale venue, open bar, hors d’oeuvres, branded elements, AV setup, professional staffing

These are ballpark ranges—real costs vary by location, date, and availability. But they show how different priorities shape your spend.

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Final Thoughts: Budget With Intention, Not Fear

You don’t need a massive budget to throw a great event. You just need to know what matters, plan ahead, and be intentional with where your money goes.

The best events feel effortless—but they’re rarely unplanned. Spend smart on the pieces that matter, and don’t get distracted by everything else.

At the end of the day, the goal is simple: Create something people will love, and you’ll enjoy planning.

Need help figuring out your event budget—or how to make your dream day work with your real-life dollars?‍

‍Talk to us at FunCo Events. We help people plan smarter, stress less, and actually enjoy the party. Because it’s not just about what you spend—it’s about how you spend it.