“I can afford it.” What does that mean to you? Does it mean you can pay cash for a purchase? Does it mean, given your current income and debt load you can make the payments? Does it mean you feel comfortable with the responsibilities a particular acquisition involves? Does it depend?

It depends on the person, the purchase, and the situation. It depends on the person’s perceptions of their job and income security. It depends on their perception of the overall economy. For some, it depends on their age. For many, it depends on their attitudes toward retirement. For many, it depends on how much they want something.

Here are some questions that should help you discover what, “I can afford it,” means for you.

• How often do you worry about money matters?

• Do you have a financial, “rainy day fund,” to help you deal with an unexpected financial situation? If you don’t, can you begin to build up at least a six-month reserve fund from your current income stream? A year’s worth of savings is better. These funds should be independent of investment funds.

• Do you pay cash for vacations, or do you put them on credit cards or take out a loan? Do you pay cash for your Christmas/holiday season gifts? Do you pay off your credit cards each month, or do you make the minimum payments?

• Regardless of your age, have you started saving for retirement? How much will you have at age 67?

• Do you educate yourself on a regular basis on current economic conditions and how to invest money?

This is just a starter set of questions. If you have difficulty with any of them it might show there are holes in your concept of what you can or can’t afford. A major problem that affects many people is the inability to delay gratification. They want it now. Another impediment to financial solvency can be little treats and habits. Gourmet coffee at $5 per cup is common. I have heard people say how they cannot imagine getting along without their daily indulgence. They speak of it in referential terms. Is it worth $1,250 per year?

The money we earn, in many ways, is our life and energy in a convenient form: currency. I suggest that we look at money that way. Then, ask ourselves if what we are about to spend our money on, is worth a part of our life. If we do, we might begin to regard our money as more valuable than we do now.

Tim O’Brien writes continuing-education courses and presents seminars on stress management.