Question

Rachel explains that "your monthly minus all of your expenses should equal zero." What does that mean you should do with every dollar of your income?

a) Save
b) Spend
c) Allocate
d) Budget

Answer 1

To follow Rachel's statement, you should allocate every dollar of your income towards your expenses.

Step-by-step explanation:

In this scenario, the instruction states that "your monthly minus all of your expenses should equal zero." This means that you should allocate every dollar of your income towards your expenses so that you have no money left over at the end of the month. It emphasizes the importance of budgeting and ensuring that your income is sufficient to cover your expenses.

Let's say you have a monthly income of $2000. Your expenses could include rent, utilities, groceries, transportation, and entertainment. You'll need to allocate a specific amount for each expense, making sure that the total sum of your expenses equals your income. By doing so, you will have effectively managed your money and ensured that you are not overspending or underspending.

In summary, the correct option to do with every dollar of your income, according to Rachel's statement, is to allocate it towards your expenses.