The 3 Ways I Spend Money
In this concise monologue, Shanli Liu, CPA, CTP, presents a three‑bucket framework for personal spending. The first bucket, investment, is defined as any purchase where the primary goal is to maximize financial return; decisions are driven by quantitative analysis. The second bucket, commodity, covers items of low personal significance (e.g., toilet paper) where the objective is to minimize cost while achieving an acceptable level of quality. The third bucket, enjoyment, includes purchases that provide personal satisfaction; here the aim is to maximize absolute personal value rather than value per dollar. Liu argues that failing to classify purchases into these categories leads to suboptimal outcomes—such as buying a house that is neither a good investment nor a desired home, or choosing a cheaper sweater when the desired one would bring more enjoyment. By consciously assigning each expense to the appropriate bucket, individuals can make clearer, more aligned financial decisions.
