What is Surplus (monthly)?
In Academy's lessons the monthly surplus is take-home pay minus essentials over the month, and it turns negative when income dips or costs jump. Because it is a monthly total, a month can show a surplus and still run short in the middle when bills fall due before payday. Treat irregular yearly costs as monthly set-asides before calling the rest surplus.
Also called monthly surplus, leftover income, cash-flow surplus
Jordan's year (illustrative, lesson J1)
- Usual month
- $650
- Month with hours cut: $650 − $800
- −$150
- All 12 months together
- $7,00011 months × $650 − $150
- Positive: room to save, pay extra on debt or fund a goal, in an order you choose in advance.
- Negative: the gap must come from a reserve, cuts in spending, extra income or borrowing.
- Judge it over several months, not one.