We can afford it
“We can afford it” A simple enough phrase intended to assure those listening that financial arrangements are sound and in good order. Except that on its own the phrase contains none of the detail required to determine the voracity of the statement. For example, I can afford a Rolls Royce. If I were to arrive home this evening in a Rolls I could, in response to my wife’s inevitable quizzical look, state “We can afford it”. She will of course seek further clarification at which point I can point out that by not paying for heating oil, electric, rates, holidays, telephone etc. the car is easily affordable. After a very short discussion, led by her, on the nature of affordability the car will be returned to dealership forthwith. I won’t pick up a Rolls Royce tonight because I understand a very basic governance and financial management rule, whether at home, in a company boardroom or a council chamber, when someone says “we can afford it” the response is not “great” the proper res