Basic financial education and literacy are just one of those skill that every investor must have. To be able to have a successful investment for long-term retirement, understanding the fundamentals on how investments work or even simple economics is key in order to be successful in this area.
Budgeting should start once we have the curiosity of investments. Once you have started your journey towards acquiring your first investment, it is very important that you budget all of your finances because this will let you set aside the money that you will allocate in this aspect.
Budgeting is very important for everybody that makes money, including companies and governments. So far you are getting money on a regular basis there is need to have a budget for how you spend the money. Even when you are gifted money that you didn't plan for, there is still need to make a budget so that you don't waste it on things that are not important to you. The simplest definition of budgeting is having a plan on how to allocate money so that you will not misuse it.
Often times we always prioritize our wants more than our needs this is why we allocate money and end up spending money on things that ain't important and later on we reckon on ourselves for doing so, why it's required to know ones needs and wants and know what we are prioritizing and setting budget for. Setting a plan on how to spend every money that comes in matters inorder to take advantage of spending on things that are essentials.
There has to be a balance between our wants vs our needs. While needs are essentially the things that are obligatory/mandatory, wants are still considered beneficial in order to at least have a goal to pursue. Having to understand the balance between the two (2) makes an investor successful in the process.