Importance of sale of preference and how it can help you spend money wisely

Economics covers the following basic of human lives.They are also known as the scope of economics.
They further include, Needs, want, scarcity and finally scale of preference.Today we are going to further look into scale of preference.

Scale of preference is one of the scope of economics which has to do with a list of individual wants in order to their relative importance. The drawing of scale of preference will make it easier for choice to be made.

Since human wants are unlimited, and the available resources used to satisfy these wants are limited, and cannot satisfy all human wants, human beings have no other choice than to rank these needs according to their relative importance which is called scale of preference, placing more important needs first before the less important ones that may be satisfied at a later time.

For example,a student who is in need of textbooks,sandals,biro,shoes, trousers,shirts, exercise books etc,but with limited resources,may draw his or her scale of preference like this...

A student's scale of preference should be drawn in a way that his/her pressing needs would come first before the less important ones especially when the resources is limited or low. When a student makes use a good scale of preference, according to how important his or her needs are, the student is said to behave rationally.

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Now why is scale of preference very necessary especially in the country today where we have limited resources. Firstly, scale of preference helps us to place our needs in order of their relative importance. Secondly, scale of preference helps or aids an individual to make rational choices. Thirdly, scale of preference leads to efficient utilization of limited available resources. Fourthly, scale of preference drawing shows our needs at a mere look and reminds us of such needs and this in turn will push us to plan ahead for such needs.

Further more, scale of preference aids an individual to forget those wants he cannot satisfy as a result of limited available resources.

Additionally, since human wants are numerous and the resources to satisfy them are scarce, scale of preference is therefore necessary to help us to make choices that gives Maximum satisfaction.Scale of preference also encourages savings.

If one doesn't have a scale of preference,he will want to lavish money in satisfying unreasonable wants which will in turn affect him or her because needs come up any point in time. In the country today since we are running inflation which is more money purchasing few goods. We need to draw a scale of preference in order for us to plan ahead of unseen events which will happen in the future.Scale of preference will also help us to know the difference between needs and wants.

Needs are said to be what human beings can not do without. Human beings can't survive if they lack any of those four basic necessities of life. They include, Food,water, clothing and shelter. These four things mentioned above are the basic needs of human beings. Every living human shouldn't lack any of these as it will make life uncomfortable for him or her.

Then what are wants?
Wants are said to be those things which humans can do without. Humans can actually live comfortably without these things. They include cars, television, clock etc. These wants are not as more important as the needs mentioned above, These can only be gotten if there are extra available resources.

But there are limited available resources, the wants can be set aside for a later time, and the needs should be taken care of immediately.In a family, parents should focus more on the needs of the children and entire family, impressing outsiders shouldn't be the main motive. Today I see some people who has cars but deep inside they are very hungry.

Please if u are Among this set of people always remember that u have a family to feed and not a community to impress.It's better u eat good and nutritious food in a thatch house than to stay hungry in a mansion.Government today also have a big role to play in this aspect. They should make sure that the basic needs of the citizens are being provided and not neglected.

But should citizens fold their hands and rely on the government's to provide their needs? The answer is a capital NO. Even the Bible says that heaven help those who helps themselves. We should also support the government by paying our taxes as these taxes are being used to provide the masses needs.

• What are some demerits of scale of preference?

When one doesn't have a scale of preference,he or she is likely to run bankrupt because of the excessive use of the available resources. Lack of scale of preference too does not encourages savings. Some needs are left behind because of lack of scale of preference.

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