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So we have learned how to grow budgets.

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In this video we will be learning about the best practices what we should and what we should not be

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doing when we are drawing a budget.

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Sometimes budgets are avoided because they are common.

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This is a mistake and at the bottom should be leveraged.

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That is they should be used because they are common as this means less learning curve for your audience.

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So instead of using their brain to understand how to read the graph the audience can spend its time

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on you figuring out the message that we wanted to convey using that visual.

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So budgets are easy to read and we can easily compare the end point of the box so we can quickly see

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which category is the biggest which is the smallest and we can also find out the incremental difference

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between different categories.

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Now take a look at this graph and think about what do you feel about the expiration of the X cards.

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Take pentagons to find out what is wrong with this graph.

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So on first look probably you'll get worried about the huge increase in tax rate.

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The issue with this good offers the bottom number on the vertical axis is not zero.

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It is rather 34.

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This means that the bars are actually continuing down through the bottom of the page.

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In fact the way this is graph the visual increases for 60 percent whereas actually the visual increase

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should have been 13 percent.

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Here I have compared how it was represented by the news channel and how it should have been shown instead.

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So when you look at the graph on the right perhaps you'll think that the tax increase isn't socialism

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at least not as rare as originally depicted.

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Because the way our eyes compare to the letter and points of the bars it is important to have the context

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of the entire advert so that we make the accurate comparison so body graph so depicting the same value

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same information but the graph on the left is slightly misleading because it is not starting from zero

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and it is making you think that the change is huge whereas it is not as huge as is being perceived by

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looking at this graph.

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So always remember because how our eyes compare the relative endpoints of debate it is important that

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bar charts always have a zero baseline.

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You can also note that there are few other differences.

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The y axis labels which were originally on the right hand side have been moved to the left since we

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read from left to right.

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So it is important that we first look at the axis to understand what is the actual value of the data.

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Secondly the data labels which were a little outside but have now been brought in.

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But this helps reduce clutter in the graph.

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Also since we already have these data labels that is I know that 35 percent is the tax rate now and

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thirty nine point six will be tax rate.

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Later I can make this y axis since it is just redundant information.

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So in your professional career if you're growing the graph always start it from a zero baseline but

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if you get a graph and you have to look at the graph and take a decision based on the data they always

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check the baseline that the other person used.

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If your baseline is not do you mean perceiving exaggerated increase or decrease in the data.

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And as for the use of axis or the data levels if you want your audience to focus on the big picture

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trends either remove the graphical axis or b emphasize it by making it great and using the data label

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is always preferable as it clearly highlights the value of each data point.

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The way we are discussing lentil bonds let us also spend a moment on the rate of divorce.

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There is no hard and fast rule here but in general the bar should be wider than the white space between

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the bars.

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You don't want the bars to be so wide however that your audience wants to compare areas instead of lends

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to consider these three examples.

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And this first one these bars are looking too thin.

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That is this wide area is too wide as compared to the width of the bar in this one.

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The bars are to take and this is just right does hold the weight of bars and rate of light space it

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should be in your graph.

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Next important consideration is when you have multiple cities in your column order bar chart.

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This is a single city is plotted.

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These are two cities and these are multiple cities.

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The point of using multiple cities is that you should be able to compare the trend in these cities.

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Now if you look at this graph it has too many cities for you to compare.

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So it is always preferable to limit the number of cities to two or three so that you can look at the

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trend of individual cities and compare these multiple leaders he's using too many data cities will make

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it cluttered.

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Now these are tagged bar charts while drawing these tag bar chart.

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I also told you that these are used to compare the contribution of different categories to the total.

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Now if you want to see the change in the contribution of a particular category over time or with any

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other variable it is easier to compare this first category only since it is on the zero based Lane and

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its height can easily be compared to one another.

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And you can easily see when it is decreasing and when it is increasing but it becomes really difficult

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to compare the categories on top of the first category.

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Now if you want to compare these values in these second cities it is difficult because it does not have

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a common baseline.

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So if you want to see whether this value is equal to this fifth one or it is more than this one or less

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then you cannot really see since the baseline is different but would also if you have a lot of parts

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in this category it now has three but if it has seven or eight it will become really confusing about

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the trend of contribution of each category.

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So when you're using a stag bar chart remember to have limited number of categories and to have the

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most important category at the bottom for which you want to compare determine if you can do away with

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a start target it is preferable that you draw a normal column chart and compare the contribution date.

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Then we also learn how to draw the horizontal bar chart.

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I told you that we usually prefer horizontal bar charts because first they are easier to read.

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And secondly if you have a longer category names you can show those category names without them being

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overlapped.

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So if you have this same graph in a vertical position and you have longer category names the category

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names will be overlapping and it will look cluttered.

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You can show the same love in a horizontal fashion and it will be much clearer.

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And in terms of series The Rule is same as what vertical chart keep the number of cities to two what

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three.

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So that it is easier for you to compare the performance of these cities or categories do not overplay

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that you are judged by using more than four or five cities under consideration while drawing a horizontal

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bar chart is how do you order these categories.

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So we have five categories.

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Which category should we show as the first category and which category as the last one.

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So what should we order of these categories.

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We usually prefer the natural ordering of the category.

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For example if I have category of age groups such as 0 2 10 years or eleven to 20 years old and so on

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the natural order which is the increasing order of age range should be preferred but in case there is

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no natural order in your categories for example the name of cities such as New York London Tokyo then

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we need to select the order so that the data makes more sense.

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And how will the data make more sense.

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So probably we should use the largest or the smallest category on the top.

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So this is one order in which I have arranged these categories in the decreasing order of their numbers.

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So first of all I prefer the natural ordering.

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If there is no natural order try to put them into increasing or decreasing order so that user can interpret

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it more easily.

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So while drawing bar charts or column charts keep these viewpoints in mind so that you can convey your

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message more clearly and in a more efficient way.