"This" is generally used for: 1. something you have with you 2. something close to you 3. the first thing you are talking about "That" is generally used for: 1. something you don't have with you 2. something further away from you 3. the second (or other) thing you are talking about Example: 1. I'm wearing a sweater with buttons. We're looking at a magazine ad for a sweater without buttons. I might say, "I like sweaters with buttons like this. But I don't like sweaters like that!" 2. We go to a store and see short skirts hanging on a rack close to us and long skirts hanging at the back of the store. I might say, "I want a skirt like this, not one like that." 3. I give you two choices - we can earn money by selling cupcakes, or we can earn money by selling fruit. If you say "I'd rather do it like that," I would assume you are talking about selling fruit. (NOTE: if you prefer to sell cupcakes, you wouldn't normally say "I'd rather do it like this" unless you were pointing at cupcakes, or already selling cupcakes.) Also, "that" is more often used in stand-alone situations. "I would love a dress like that!" for example, would be much more common than "like this", which would likely only be used if you were currently trying on the dress in a store. Hope that helps!