A-Z of Budget Sheet

Accounts Payable

Money you owe to other people or businesses. Example: Buying clothes on credit from Jet or Ackermans and paying monthly.

Asset

Something valuable that you own and that can provide future benefits. Examples for individuals: House, car, jewellery. Examples for businesses: Office building, machines, equipment

Bond

A loan that is secured by something (like a house or property) and must be paid back with interest.

Contribution

The regular amount you pay into a medical aid or pension fund.

Credit Agreement

An agreement where you buy something now (like a TV) and pay for it later in installments, usually with interest.

Exchange Rate

The value of one currency compared to another. Example: How many Namibian Dollars equal one US Dollar. This changes daily.

Expense

Money that you spend on goods or services. Examples: Groceries, electricity, airtime.

Funeral Plan

A policy that pays out when someone dies, to help cover the cost of the funeral.

Income

Money you earn from work or other sources. Example: Your monthly salary or wages.

Inflation

When prices go up and the value of money goes down. Example: Bread costs N$8.00 this year, but N$8.50 next year.

Investment

Putting money into something (like property or shares) to make more money in the future. Example: Buying a house and renting it out for profit.

Loan

Money you borrow and must repay later, with interest.

Liability

Money or obligations you owe to others. Types: Short-term liability: Bills due within a year (e.g. water bill) Long-term liability: Debts that take longer to repay (e.g. car loan)

Matured Policy

A life insurance or savings policy that has reached the end of its term or purpose. Example: A life insurance policy matures when the person passes away and the benefit is paid out.

Mortgage

A special type of loan where your house is used as security. If you don’t repay, the bank can take your house.

Retirement

The stage in life when a person stops working, usually around age 60 or 65.

Savings

Money you keep aside and do not spend now, so you can use it in the future.

Solvency

Having more assets (what you own) than liabilities (what you owe). Example: A solvent business can pay all its bills.

Tax

Money you pay to the Government from your salary or purchases, used to fund public services.