surplus
An amount of something left over when requirements have been met; in finance, when income exceeds expenditure.
Example
“The government ran a budget surplus of $50 billion after years of austerity.”
Memory Tip
SURPLUS = SUPER PLUS — more than you need. The opposite of a deficit.
Why It Matters
Understanding surplus is crucial because it shows whether you are spending less than you earn, which is the foundation of building wealth and financial security. A personal surplus allows you to save money, invest for the future, and handle unexpected emergencies without going into debt.
Common Misconception
Many people think that a surplus only matters for large organizations or governments, but it applies equally to personal budgets and household finances. In reality, tracking whether your monthly income exceeds your spending is one of the most important financial habits an individual can develop.
In Practice
If you earn 4000 dollars per month and your total expenses are 3000 dollars, you have a 1000 dollar surplus each month. Over a year, this 1000 dollar monthly surplus becomes 12000 dollars that you can put toward savings, debt repayment, or investments, significantly improving your financial position.
Etymology
From Latin 'super' (above) + 'plus' (more) — more than enough.
Common Misspellings
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