How do you determine if something you want to spend money on is an expense or investment?

[Min George]

We buy some regular things because we see them as investments. Someone might buy a car as an investment while it might be an expense to another person.

What parameters define some things we buy to be investments or just expense?

 

[Fidelia]

If that thing that you buy can help you to make more money in the future, it is definitely an investment.

 

[Suba]

The parameters for determining whether the funds we spend are expenses or investments must of course consider the benefits of the item. If you buy a laptop solely for gaming or social media activities, it would be considered an expense, whereas if you buy a laptop for online work, it would be considered an investment.

 

[Min George]

If that thing you spend money on brings more money to your life, it is definitely an investment. But if otherwise, it is an expense.

 

[Trush Jodie]

If something that you are spending money on doesn't retain value for a long term, it is definitely an expense.