What is establishing and allocating the promotional budget?

What is allocating the Budget?

• Answer:

  Putting money aside for necessities; making sure you have what you need to take care of business. Example: you make $3000.00 monthly, $1500.00 bi-weekly your rent is $1000.00, water $20.00, electric $100.00, gas $100.00, food $300.00, cable & internet $120.00 these bills are every month. You need to allocate so much money per paycheck to pay these bills. So you need to put aside $1150.00 from your first check - to pay your rent and buy some food, the rest you can bank (or pay some more bills) on your second paycheck you'll want to put aside $490.00 to pay the bills, the rest you can bank. so in essence (in this senerio) you need to allocate $1640.00 a month to take care of home. (no worries) the balance of $1360.00 is banked for a rainy day, investing or whatever. I hope this helps