> For the complete documentation index, see [llms.txt](https://openup.gitbook.io/handbook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://openup.gitbook.io/handbook/how-we-work/budgets-and-finance/where-budget-planning-starts.md).

# When to Start Planning a Budget

Budget planning begins in the **Project Initiation** phase. Whether a project is internal or external, budget planning should start **as soon as possible.** 

\*Note: to understand OpenUp's definition of an external project vs. an internal project, click [here](/handbook/projects/pre-project/defining-project-parameters-and-limitations.md#internal-vs-external-projects-whats-the-difference).

###  **External projects**

* begin planning for the budget during the project initiation phase.
* budget plans are a standard component of the project proposal process presented to a client. 
* * To learn more about the components of a project proposal, click [here](broken://pages/-M7ax0lBY_tt3uvdEQcW).

### **Internal projects e**ither align to project-specific grants, or core grants

* **project-specific grants** are intended for project-specific ideas. 

* **core grants** are guided by a “vision for the organization”

* * aligned to the **KPIs and measurables** against what needs to be reported. 
  * followed by an estimation of costs; namely the **operational cost,** and the **cost of implementing that vision among the other internal projects.**  

###