I am reading about AdWords for our Home Health and Hospice company. I am not understanding the concept very well. "Set your own budget?" Nowhere can I find how much it costs me per click, or what my budgeted amount pays for. How do you figure out how much to pay, and for what services? Is it clear once you sign in and create an account?
Budget is defined as How much you are willing to spend on a Daily basis for that Campaign. You will never be charged more the 20% over your budgeted amount. ( The system stops showing impressions as you get close to the daily budget and stops showing ads when the budget is reached. there may be a overun at times as clicks come in at the same time causing the over-run of the daily budget)
So for example your marketing budget in general is $1000 a month, then you would either divide that by 31 days and allocate a budget of 32.50 a day.
The amount you pay on a pay per click basis is determined by your actual bid prices and the final auction price per click depending upon other Ad Rank Factors.
So to start out with when creating your campaigns put in a number for a daily basis you are comfortable with and you can edit that at any time. Until you find out your actual cost per click based upon your targeting, match type keywords , competition etc, you will not know what is the most appropriate ( unless you have a fixed in stone Advertisement Budget you can not go over.
You may want to also review some of the basics here: