On the face of it you can, because there’s the money in the bank that’s maybe not doing much. After all, the bank is paying you 0.00001% on your deposit account, you don’t understand the stock market so there’s no point risking it there because you could lose a lot more than whatever you’ve seen in the shop will cost you. Why not treat yourself?
But do you have a financial plan?
Honestly, if you don’t have a financial plan, you’ve absolutely no idea if you can afford that new thing or not! Absolutely none!
Let’s go back to basics
You want to have a certain amount of money and assets by a certain age. I would suggest at least $1M by the age of 50 including your house, pension plans and whatever as a minimum. For a couple, it’s at least $1.5M.
Work back from there and figure out how much you need to save every month to get there.
If you’re 25 years old, you need to be socking away $500 every month for the first year. The next year, $600 a month. The year after that, $700 a month, and so on, increasing your savings rate by $100 per month every year. If your savings grow at 7.5% a year, you’ll be a millionaire by 50. Just! And you’ll probably have to pay some taxes along the way on your investments…