English has this and that. Portuguese grammar has three steps, depending on where the thing is:

	Near me — aqui	Near you — aí	Over there — ali, lá
masculine	este	esse	aquele
feminine	esta	essa	aquela
masculine plural	estes	esses	aqueles
feminine plural	estas	essas	aquelas

Like adjectives, they agree with the noun — but they come before it: este vestido (this dress), essa camisa (that shirt, by you), aquele chapéu (that hat over there), aquelas bolsas (those bags over there).

The place words help: aqui (here), aí (there, where you are), ali (over there) and lá (over there, further away).