I am glad to once again engage us in this post of mine. Sincerely am impressed at our progress level and I want to say thanks @xkool24 for his mentorship, @kelvincole and @bright-obias for their for their their supports and to all of you my supporters, am grateful. This is a continuation of Financial Stability Season 2 and I will be discussing on another factor that could help us maintain financial stability if maintained and adhered to. It is Table of Preference.
Introduction 
In the past episodes, we have discussed so vital tools that facilitate financial stability one of which is budgeting. Recall that budget refers to the valuation of revenue and expenses over a clearly and explicitly stated future period which is often compiled and periodically re-evaluated.
Besides budgeting, the table of preference is another crucially important tool that aids the maintenance of financial stability. Now let us consider how the scale of preference could aid financial stability.
The scale of preference is a tabularized list of an individual's wants in order of their importance. Every individual's want has a level of importance in respect to time hence, the scale of preference allows for easy planning of choice making. Of course, we know that human want is insatiable, the more we try to satisfy them, the more they increases and there are limited available resources to meet or satisfy all these wants, we are therefore left with no other option than to prioritize these wants in order, taking into consideration their relative importance as well as time.
The scale of preference enables an individual, firm, or organization to make the most of choices in order of priority and derive maximum satisfaction with the limited resources at their disposal while maintaining financial stability. Most of the time, individuals seem to conceive scale of preference mentally however, it helps more to put it on paper.
Now let's consider how the scale preference may be beneficial:
1 It allows for optimal utilization of limited available resources.
2 A commercial institution can deploy a scale of preference to produce the right quantity of goods for their customers
3 With the scale of preference, customers' satisfaction can be achieved with the available small resources
4 After the acquisition of resources, it helps in good decision making.
5 It draws a line between people's priorities and their available resources.
The Importance of Scale of Preference
- Priority:
It enables individuals and organizations to make a fast identification of the most paramount needs.
- Maximization of Satisfaction:
With the scale of preference, individuals, organizations and economic agents can maximize their satisfaction.
- Efficient Management of Resources:
Irrespective of how limited resources are and the insatiable nature of want, the scale of preference helps both individuals and organizations to efficiently utilize available resources and attain maximum satisfaction.
- Excellent Allocation of Resources:
This is another importance of scale of preference. When it comes to resource allocation, the scale of preference is a key tool that ensures excellent allotment of resources.
- Financial Judiciousness:
The scale of preference besides budgeting helps in the proper maintenance of finance thereby enhancing our level of financial judiciousness.
Conclusion
Since human want is insatiable and there are limited available resources to satisfy these wants, the scale of preference becomes important for the effective and efficient management of these limited resources. Besides budgeting, the scale of preference helps us to, not only make better decisions for our expenditures but is also useful for our business and serve the purpose of economic planning.
Written by:
@hisgeneral