Milton Friedman, in his book “Free to Choose“, detailed the four ways to spend money:
You spend your own money on yourself. You spend your own money on someone else. You spend someone else's money on yourself. You spend someone else's money on someone else. You get the best value for your dollar if you stay within #1. Here's a video clip summarizing his economic theory. Warning: some flashing lights in the video, starting at 0:17 to 0:25
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Larry Ludwig is a freelance contributor for Moneywise.
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