What is a “monthly surplus”?

A monthly surplus is the money left over after you’ve covered regular expenses and minimum payments. It might be $50, $200, or more.

Even a small surplus becomes powerful when you direct it intentionally instead of letting it disappear into day-to-day spending.

Take a look at the Cash Flow Calculator

The three common destinations for surplus money

For many families, surplus money usually flows toward three priorities:

  • Debt: paying down high-interest debt or making extra mortgage payments
  • Education: contributing to children’s RESP savings
  • Retirement: building RRSP or long-term investments

There’s no perfect split. The goal is choosing a mix that aligns with your values and feels sustainable.

A simple framework: secure, support, someday

One helpful way to think about surplus money is in three buckets:

  • Secure: strengthen your foundation — emergency fund, high-interest debt, or core mortgage payments
  • Support: invest in your children’s future through RESP contributions
  • Someday: build long-term comfort for future you through RRSP or other investments

Once basic needs and a small safety buffer are covered, your surplus can be divided across these buckets in whatever ratio fits your life.

Using tools to test different splits

Seeing real numbers often makes decisions clearer. FinForFam’s tools let you explore how different surplus strategies play out:

  • Use the Mortgage Booster to see how extra payments affect payoff time and interest
  • Use the RESP Planner to see how increased contributions change education savings
  • Use the RRSP Growth Starter to project long-term retirement impact

Try a few “what-if” scenarios and notice which mix feels most aligned with your priorities.

Example: splitting a $250 surplus

Imagine your household has about $250 left each month after covering the basics. One possible split might look like:

  • $100 toward extra mortgage payments
  • $75 into RESP savings
  • $75 into RRSP contributions

The exact numbers aren’t important. The real win is choosing a plan deliberately instead of letting the surplus drift away.

Adjusting as life changes

Surplus strategies should evolve:

  • Mortgage balances shrink
  • Kids get closer to — or finish — school
  • Income and expenses shift

Revisit your approach once a year and gently adjust toward what matters most now.

Quick reminder: This guide explains general planning ideas and doesn’t replace personalized financial advice.

Want to see how your surplus could work across different goals?

Explore this with simple tools

Test different ways of splitting extra cash and see how each decision affects your bigger picture.

Try the Mortgage Booster → Try the RESP Planner → Try the RRSP Growth Starter →