Shadowing Practice: How to Talk About Project Budgets & Cost Estimation in English - Learn English Speaking with Video
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Hello everyone and welcome back to another episode of Daily Business English Talk.
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I am Anna.
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And I am Jack.
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We are so happy to have you listening to us today.
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Whether you're at your desk, taking a walk, or having your morning coffee, we are thrilled to spend this time with you.
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That is right, Jack.
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If you want to build confidence speaking English at work and and learn practical vocabulary for your job, you have come to the right place.
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Before we begin today, if you enjoy our channel and find our lessons helpful, please hit that subscribe button.
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It really helps our show grow and ensures you never miss a new lesson.
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Exactly.
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Today we are covering a topic that was actually requested by one of our wonderful listeners.
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We are going to learn how to talk about project budgets, cost estimation, and calculations in English.
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Numbers and financial terms can feel a little intimidating a second language, but talking about money, costs, and estimates is something almost everyone has to do at work,
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whether you work in marketing, management, sales, or IT.
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So true, Anna.
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By the end of today's conversation, you will know how to describe direct and indirect costs, talk about contingency plans, explain overheads,
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and use everyday math words smoothly when presenting numbers to your team or manager.
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That is our mission today.
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So Jack, let us start with a little personal story.
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When you first started working on project estimates, how did you feel about explaining the numbers in English?
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Oh, I was terrified, Anna.
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I remember sitting in a meeting early in my career, and my manager asked me, Jack, what is the estimated total cost for this campaign?
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I knew the numbers in my head, but trying to explain addition, multiplication, and extra buffer money in English made me stumble over my words completely.
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Oh, I completely understand that feeling.
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It's one thing to know the math in your head, but speaking it aloud in front of colleagues adds a lot of pressure.
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I used to worry that if I made a small mistake with a word like overhead or contingency, people would think I didn't know my job.
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Exactly.
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I used to just say, the total cost is $10,000, and pray that nobody asked me follow-up questions about how I calculated that number.
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That is such a common experience.
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But as we learn the right vocabulary, explaining how we reached a number actually becomes very simple and logical.
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Today we want to help all of our listeners feel completely relaxed when talking about money and estimates at work.
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I love that.
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So do not worry if some of these terms are brand new to you today.
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We will take it step by step, explain everything in simple language, and give you plenty of practical examples.
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Absolutely.
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So, Jack, let us start at the very beginning of creating a project budget.
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What is the first thing we usually do when we try to figure out how much a project will cost?
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Well, first we have to look at the different types of expenses.
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We usually divide costs into two main categories, direct costs and indirect costs.
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That is a fundamental place to start.
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Let's explain what those mean in simple terms.
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A direct cost is money that you spend directly on the project itself.
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For example, if you're building a new software feature, the salary of the developer writing the code, or the cost of buying specific hardware for that project,
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would be a direct cost.
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Right.
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It's directly tied to creating the final product.
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On the other hand, indirect costs are expenses that support the overall business or project, but are not tied to just one specific item.
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We often call these overhead costs, or simply overhead.
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Overhead is such a great business word.
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includes general costs like office rent, electricity, internet, and general management salaries.
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Even though you can't point to a single piece of work and say, this used $50 of electricity, those background expenses still exist.
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Yes.
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So when you create a comprehensive estimate, you have to factor in both direct costs and indirect costs or overhead.
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Exactly.
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Factor in is a wonderful phrasal verb here, Jack.
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To factor in means to include a specific cost or piece of information when making a calculation or plan.
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For instance, you might say, we need to factor in the cost of software licenses before we finalize the budget.
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That is so clear.
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So once we list our direct costs and overhead, we usually have to do some basic math.
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Ana, let us talk about how we express basic calculations aloud in business conversations.
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Sometimes learners know the math symbols, but they feel unsure about which words to speak.
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That is very true.
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Let us start with addition.
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When we want to join two numbers together, we can use the words add or plus.
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For example, if direct costs are $5,000 and indirect costs are $1,000,
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we say, 5,000 plus 1,000 equals 6,000.
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Or in a regular sentence, you might say, when we add the material expenses to the labor costs, the total increases.
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Exactly.
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And what about when we take away an amount, Jack?
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That is subtraction.
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We can use the word subtract or minus.
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For instance, if a client gets a discount, you might say, If we subtract the 10% discount, the final price is lower.
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Or, $10,000 minus $2,000 gives us $8,000.
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Very clear.
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What about when we need to repeat a number multiple times?
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That's multiplication.
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We can say, multiplied by, or simply, times.
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Ah, times is so common in spoken English.
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For example, if we have five freelancers working for 10 hours each at $20 an hour, we say five people times 10 hours is 50 hours.
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Then 50 hours multiplied by $20 is $1,000.
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You made that math sound so easy, Jack.
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Saying times or multiplied by is very natural in spoken meeting updates.
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Now, Ana, there's another very important concept in project estimation that every manager loves to hear about.
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It's called contingency, or a contingency fund.
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Can you explain what contingency means?
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I would love to.
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In business, things do not always go perfectly according to plan.
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Unexpected problems happen, prices go up, tasks take longer, or tools break.
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A contingency is extra money that you add to your budget as a safety buffer for those unexpected expenses.
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A safety buffer.
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I really like that description.
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So if my estimated total cost is $10,000, I might add a 10% contingency, which is an extra $1,000, just in case something goes wrong.
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Precisely.
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You can present this to your boss by saying, We have included a 10% contingency to cover any unforeseen costs.
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Unforeseen means things that we cannot see or predict right now.
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That sounds so professional.
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Including a contingency shows your manager that you are realistic and cautious.
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proves you're thinking ahead.
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It really does.
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Now, what about the money the company actually makes after paying all these costs?
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That brings us to profit and profit margin.
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Right.
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Profit is the money left over after all expenses, both direct costs and overhead, have been paid.
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And the profit margin is that profit expressed as a percentage of the total revenue.
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Yes.
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So, if a client pays us $15,000 for a project and our total costs,
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including overhead and contingency, were $10,000, our profit is $5,000.
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And we can say our profit margin on this project is very healthy.
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Healthy is a nice word we use in business to mean good or strong.
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Absolutely.
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A healthy profit margin means the business is making good money on the project.
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Now let's talk about how we summarize all these numbers when we talk to a colleague or client.
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What are some smooth phrases to bring all the calculations together?
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You can use expressions like, to summarize the figures, or the grand total comes out to.
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Another very common phrase is, the total cost breaks down as follows.
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Breaks down.
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That is another great phrasal verb.
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To break down a budget means to separate the total figure into smaller, detailed parts so everyone can see where the money is going.
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Exactly.
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For example, you can say, the budget breaks down into three main parts, labor, equipment, and marketing.
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That makes it so much easier for people to understand complex financial plans.
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Let us listen to how all of these words and concepts sound when used in real office conversations.
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Yes, let us do some realistic dialogue so our listeners can hear these terms spoken naturally.
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Imagine Jack and I are project managers sitting down to review an upcoming proposal before sending it to a client.
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I am ready.
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Let us start.
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Hi, Jack.
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Do you have a few minutes to look over the draft budget for the new mobile app project?
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Sure, Anna.
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I would love to.
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How are the numbers looking so far?
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Well, to summarize the figures, our initial estimate for direct costs is around $20,000.
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That covers software development and design.
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Okay. $20,000 for direct costs.
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Have we factored in our overhead expenses yet?
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Yes, I added 15% to cover indirect costs like server hosting and project management tools.
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When we add that overhead, it brings the subtotal to $23,000.
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That makes sense.
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What about a contingency fund?
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You know how development projects often run into unexpected tech issues.
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Definitely.
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I included a 10% contingency.
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If we multiply our subtotal by 10%, that adds another $2,300 as a buffer.
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Great thinking, Anna.
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So what does the grand total come out to?
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The grand total comes out to $25,300.
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That gives us a very safe cushion while keeping our profit margin healthy.
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Excellent work, Anna.
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This breakdown is super clear.
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Let's send it to the director for approval.
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That was a great dialogue, Jack.
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Did you notice how we naturally wove together words like direct costs, overhead, factor in, contingency, subtotal, and grand total?
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It sounded completely natural and smooth.
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It did not sound like a math lesson.
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It sounded like two professionals collaborating on a real workplace task.
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Exactly.
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Now let's try a second scenario.
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In this situation, let's imagine Jack is presenting a project update to a client who wants to reduce the overall price.
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Listen to how Jack explains where the costs come from and negotiates politely.
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Good morning, Sarah.
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Thanks for taking the time to meet today.
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I have the updated budget estimate for your brand redesign.
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Good morning, Jack.
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Thanks for sending that over.
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I looked at the numbers, but the total price is a bit higher than we anticipated.
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Could you explain how you reached this figure? Of course.
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I would be happy to break down the costs for you.
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The main driver is the video production, which is a direct cost of $12,000.
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That's calculated by multiplying three filming days by $4,000 per day.
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I see.
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Is there any room to subtract some of those costs?
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Our target budget is around $15,000 in total.
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If we want to bring the total down, we could reduce the filming from three days to two days.
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If we subtract one day of filming, that immediately saves us $4,000.
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That sounds like a reasonable adjustment.
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What about the contingency amount in the quote?
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We currently have a 15% contingency built in.
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If we lower that safety buffer to 5% and reduce the filming schedule, the new grand total will align perfectly with your $15,000 target.
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That sounds fantastic, Jack.
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Thank you for walking me through the calculations so clearly.
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That was another very useful exchange.
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Notice how Jack did not panic when the client said the price was too high.
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He politely explained the breakdown, used subtraction and multiplication terms naturally, and adjusted the contingency to meet the client's needs.
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is the power of knowing these key phrases.
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You can stay calm, explain your math clearly, and find solutions that satisfy everyone.
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Before we move on, let us encourage our listeners.
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When you listen to these examples, try repeating the key lines out loud.
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Practicing the rhythm of spoken numbers and financial terms will build your confidence for your next team meeting.
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Yes, speaking aloud is the best way to make these words feel like second nature.
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Don't Don't worry if it takes a few tries to get comfortable pronouncing phrases like indirect costs or contingency fund.
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Now, let us naturally revisit eight key words and phrases
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that we use throughout today's episode so you can store them in your active memory.
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Excellent idea, Jack!
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Let us start with our first phrase, direct costs.
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How would you explain direct costs in simple words to a colleague?
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Direct costs are expenses directly tied to making a product or delivering a service, like raw materials or the wages of workers building the product.
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For example, purchasing paint for a renovation project is a direct cost.
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Very clear.
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Our second phrase is indirect costs, or overhead.
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Overhead refers to the ongoing operational expenses of running a business that cannot be traced to a single project, such as office rent, utilities, and insurance.
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For instance, we must factor in overhead when calculating our monthly expenses.
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Perfect.
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The third phrase is factor in.
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What does that mean in practical terms?
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To factor in means to include a specific amount, cost, or detail in your total calculation or planning.
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For example, don't forget to factor in travel expenses when planning the conference budget.
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Our fourth term is contingency or contingency fund.
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Anna, how would you summarize that?
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A contingency is an extra amount of money set aside in a budget to cover unexpected costs or emergencies.
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For example, we added a 10% contingency in case material prices rise next month.
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That is such a vital word.
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The fifth term is grand total.
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The grand total is the final sum after adding all different costs, fees, taxes, and buffers together.
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For example, after adding shipping and tax, the grand total comes out to $500.
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The sixth phrase is break down.
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To break down means to divide a total number or complex idea into smaller, more detailed parts so it's easier to understand.
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For example, can you break down the budget so we can see how much is spent on marketing?
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The seventh expression is profit margin.
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Profit margin is the percentage that shows how much money a company keeps as profit for every dollar of sales, after paying all expenses.
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For example, selling our products online gives us a much higher profit margin.
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And our eighth phrase is subtract, or minus.
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Subtract means to take away an amount or number from a total.
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For example, if we subtract the discount from the original price, we get the net cost.
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a powerful list of workplace vocabulary.
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Having these eight terms ready will make talking about numbers, estimates, and project finances so much smoother for all of our listeners.
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It really will.
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Remember, you do not need to memorize every single calculation term today.
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Just pick two or three that fit your current job, practice saying them in short sentences, and build from there.
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Great advice, Anna.
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And now it is time for our question of the day.
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This is the part of our show where you get to put your learning into practice right away.
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That is right.
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Today's question is, when you plan a project or personal budget, do you usually include a contingency fund for unexpected expenses?
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That is such a relatable question.
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Answering it gives you a chance to practice using today's financial vocabulary in a simple, personal way.
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Let us give our listeners two quick example answers that they can adapt for themselves.
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Here is the first example answer.
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Yes, whenever I plan a project budget at work, I always factor in a 10% contingency fund because unexpected delays almost always happen.
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That is a great answer.
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Here's a second example answer.
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In my personal budget, I try to set aside money for overhead and emergencies, but I need to get better at calculating my grand total every month.
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Both of those examples use today's keywords so naturally.
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Listeners, please share your answers with us in the comments section or write them down in your study notebook.
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We always love reading your thoughts and supporting your learning journey.
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Yes, please leave a comment.
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Seeing your responses makes our day.
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And it's a wonderful community where we all learn together.
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Now, before we conclude today's show, let's do a quick, friendly recap of what we discussed.
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Today we learned how to talk about project budgets and cost estimation in English with confidence.
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We covered direct costs, indirect overhead, adding contingency funds, calculating profit margins,
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and using simple math words like add, subtract, and multiply in spoken conversations.
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We also listened to realistic dialogues showing how to present budget breakdowns
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and discuss price changes with clients in a polite, professional manner.
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Being able to discuss numbers clearly shows that you are organized, capable, and ready for greater responsibility at work.
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Thank you so much for joining us for today's episode of Daily Business English Talk.
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We hope you feel encouraged, guided, and excited to try out these phrases in your next meeting.
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Keep practicing, keep listening, and remember that every lesson you complete builds your confidence step by step.
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Have a productive and wonderful week ahead, everyone.
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Stay positive, keep learning, and join us next time.
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Goodbye, everyone.
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Goodbye, and see you soon.
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Vocabulary and speaking notes for this lesson
This video has 261 sentences and 2886 words to shadow. The speech runs for 17:54. The speaker talks at a natural 161 words per minute, close to everyday conversation. 83% of the words are among the 3,000 most common in English; the rest is worth studying before you start.
Key vocabulary in this video
15 less common words from the video, with pronunciation and meaning:
- overhead /ˈəʊvəˌhɛd/ (noun) — The expense of a business not directly assigned to goods or services provided.
- expense /ɪkˈspɛns/ (noun) — A spending or consuming, often a disbursement of funds.
- phrase /ˈfɹeɪ̯z/ (noun) — A short written or spoken expression.
- estimate /ˈɛs.tɪ.mət/ (noun) — A rough calculation or assessment of the value, size, or cost of something.
- margin /ˈmɑɹ.d͡ʒɪn/ (noun) — The edge of the paper, typically left blank when printing but sometimes used for annotations etc.
- indirect /ˌɪn.daɪˈɹɛkt/ (adjective) — Not direct
- mathematics /mæθ(.ə)ˈmæt.ɪks/ (noun) — An abstract representational system studying numbers, shapes, structures, quantitative change and relationships between them.
- calculation /ˌkælkjuˈleɪʃn̩/ (noun) — The act or process of calculating.
- listener /ˈlɪs(ə)nɚ/ (noun) — Someone who listens, especially to a speech or a broadcast.
- unexpected /ʌnɪkˈspɛktɪd/ (adjective) — Not expected, anticipated or foreseen.
- buffer /ˈbʌfəɹ/ (noun) — A solution used to stabilize the pH (acidity) of a liquid, such as by resisting a change in pH when an acid or alkali is added.
- naturally /ˈnæt͡ʃ.(ə.)ɹə.li/ (adverb) — In a natural manner.
- calculate /ˈkælkjʊleɪt/ (verb) — To determine the value of something or the solution to something by a mathematical process.
- lesson /ˈlɛs.ən/ (noun) — A section of learning or teaching into which a wider learning content is divided.
- vocabulary /vəˈkæb.jə.lə.ɹi/ (noun) — A usually alphabetized and explained collection of words e.g. of a particular field, or prepared for a specific purpose, often for learning.
Phrasal verbs you will hear
- talk about (verb) — Used to draw attention to the speaker's characterization of someone or something.
- break down (verb) — To stop functioning.
- look at (verb) — To observe or watch.
- take away /ˌteɪk əˈweɪ/ (verb) — To remove something and put it in a different place.
- come from (verb) — To have as one's origin, birthplace or nationality.
- figure out (verb) — To come to understand; to discover or find a solution; to deduce.
- follow up (verb) — To take further actions remaining after an event; to continue, revisit, or persist; especially, to maintain communication or verify.
- go up (verb) — To move upwards.
Pronunciation to watch
The speaker uses 8 contractions and reduced forms, such as don't, you're, can't. Say them the short way, as you hear them.
- The “th” sounds: mathematics /mæθ(.ə)ˈmæt.ɪks/, smooth /smuːð/, sixth /sɪksθ/, seventh /ˈsɛvənθ/, eighth /eɪtθ/
- The “sh” and “zh” sounds: calculation /ˌkælkjuˈleɪʃn̩/, operational /ˌɑ.pəˈɹeɪ.ʃə.nəl/, negotiate /nəˈɡəʊ.ʃi.eɪt/, cautious /ˈkɔːʃəs/, renovation /ɹɛnəˈveɪʃən/
- Long words — get the stress right: mathematics /mæθ(.ə)ˈmæt.ɪks/, unexpected /ʌnɪkˈspɛktɪd/, naturally /ˈnæt͡ʃ.(ə.)ɹə.li/, vocabulary /vəˈkæb.jə.lə.ɹi/, electricity /ɪˌlɛkˈtɹɪsɪti/
How to practise with this video
- Listen to the whole video once without speaking and note the words you do not know.
- Start at 0.75× speed, shadow it sentence by sentence, then go back to normal speed once it feels easy.
- Record yourself and compare with the original, paying attention to words like overhead, expense, phrase.
Grammar in this video
The structures the speaker uses most, with the exact words from the video:
| Structure | In the video |
|---|---|
| “Used to” used to + verb — a past habit or state that is no longer true | used to worry · used to just say |
| Passive voice be + past participle — the focus is on what happens, not who does it | was actually requested · have been paid · cannot be traced |
| Present perfect have/has + past participle — a past action that still matters now | have come · have included · have been paid |
| Relative clauses who / which + clause — extra information about a person or thing | contingency, which is · production, which is |
What is the Shadowing Technique?
Shadowing is a science-backed language learning technique originally developed for professional interpreter training and popularized by polyglot Dr. Alexander Arguelles. The method is simple but powerful: you listen to native English audio and immediately repeat it out loud — like a shadow following the speaker with just a 1–2 second delay. Unlike passive listening or grammar drills, shadowing forces your brain and mouth muscles to simultaneously process and reproduce real speech patterns. Research shows it significantly improves pronunciation accuracy, intonation, rhythm, connected speech, listening comprehension, and speaking fluency — making it one of the most effective methods for IELTS Speaking preparation and real-world English communication.