Week 4 Journal

This week was all about budgeting.  Budgeting is a crucial element in personal and business life.  Without knowing your budget you will likely overspend, miss opportunities for growth, and likely fail.  The budgeting plan should be a year out and be made based on good forecasts and understanding the assumptions.  It's crucial to understand your companies costs, whether they are variable or fixed.  Variable costs are especially important to consider because they can change (hopefully shrinking).  When the costs change your opportunities change.  You could come upon a great opportunity for growth, or a problem that needs looking into.  Without watching these shifting variables you may miss a chance for improvement.