A budget is an important planning tool that helps businesses and individuals balance their income and expenses. For a business, creating and following a budget allows it to achieve its objectives and overcome obstacles while making a profit. An individual budget helps manage finances and avoid financial problems. To create an effective budget, one must understand fixed costs that cannot change, variable costs that depend on production and sales, and the break-even point where total costs equal total revenue. Monitoring the budget monthly ensures expenses stay aligned with current statistics.

1. Budgets
Nathan West

2.  A budget is one of the most important key elements for a
business, it delivers a plan which will help keep everything
balanced.
 In business a budget is used to keep all the income and money
spent in order and to give it a limit.In day to day life it is used to
make sure you don’t spend more than you need such as house
appliances and food & drink.

3. What can it help you
accomplish ?
 If used successfully a budget can help the business reach its
objectives, and overcome obstacles whilst making a profit. This
can also helps you with any financial problems.
 A reason to have a good budget is to show possible ally's or
employees that you can be depended on. If you are good at
managing your money more company's will confront you.

4.  To use a budget successfully you must look at your current balance
of money and decide what you are going to spend the money on
and the outcome. Then what else will need to be spent & how
much needs to be left over.
 A example of this is the creation of a game requires
developers, and developers need software say your budget is
£30,000 and there's a team of 30 developers which makes things
progress much quicker and in more detail.
 Say bundles of the software cost between £300-£700 all together
with the developers ready to go the cost for the software between
all of them would be round about £10,000 which is one third of the
budget, which isn't that bad considering all that comes now is the
market side of things such as how its going to be released, bonuses
and in what way it will be published.

5. How do I produce my own
Budget ?
 In order to create a successful budget with the least amount of
flaws you need to understand three concepts
 Variable Cost
 Fixed Costs
 Break Even Point

6. Variable Costs
 In little detail Variable costs depend mostly on the money the
product makes and what it is used on, this varies in the stages
of production and the sales the company makes.
 An example of this is expenses that can be modified and that
vary with each of the sales the company makes like the
production of a game such as sonic the hedgehog. If all the
software is bought and no more money can be spent that is a
fixed cost, if the game doesn’t loose or make any money it is
called the break even point and if the costs of things can be
varied, such as better software that performs quicker cost a
little extra than the one which was originally intended this is
variable costs.

7. Fixed Costs
 This is where the budget can not be modified messed around
with and altered. A fix cost implies that no money other than
the amount planned is spent, so no extras for better software or
faster computers. An example of a fixed cost is if someone is
producing a games console and they have the equipment to
make it, they know exactly what its going to look like, how its
going to work & what they are going to spend, then a new kind
of material is introduced which is waterproof or doesn’t require
a plug socket to run the console, they can not pay the extra for
the waterproof material because they have to stick to the
amount they agreed on leaving there console at risk of being
ruined by water spills.

8. Break Even Point
 Break even point is when after all the sales and costs of all the
equipment the company doesn’t gain or loose any
money, almost like they have just produced a product for free.
 Some company's are happy with this method and use it. An
example of a company using break even point is if a new
Mario game is created and all the software for the
developers, hardware and materials and printing is paid for
and all together with it being a well known franchise costs allot
of money to create, it verges on the edge of the consoles
possible performance the graphics on the console are amazing
and it roughly cost 800,000 to produce and market & then from
sales the game makes 800,000 this is called a break even point
meaning the game didn’t loose or gain any money.

9. Monitoring
 Monitoring a budget is one of the most important parts of
marketing and business, this allows you to check to see if it is
the same as the l statistics, and to find out why they are there.
 Adjust the sales and what is being spent every month to keep it
in line with the current statistics.