What to do with December's Surplus

Last month I was over my goal by over $1000. The question now is, what do I do with the surplus?

One of my goals for 2009 is to get one month's income stashed tidily away in an emergency savings account. To that goal I transferred over $250 from the December surplus into my emergency fund. This, plus the amount that I already had stashed away, puts me at about 25% of my goal. That's a pretty good start for the beginning of the year, but it won't be enough.

Each month, as part of my $900 a month plan, I transfer over $50 into emergency savings. So, that means $600 for the year. Naturally I try to add to it in various ways, but let's just start right there. If we take $600 + $250 + the current emergency fund = Less than half of what I need. Ouch!

So what does that mean? Is my goal too ambitious? Not only am I looking to have one month of emergency money put away I am also going to pay off my credit card, my car and make $900 a month. Am I wanting too much? Am I completely crazy?

I don't think so. Already in the past six months that I have had this blog I have seen that amazing things can be done if you put your mind to it. I know that there will be financial returns in the future that will help with this goal - I may not be able to predict what they are going to be, but I know they can happen. In these months, twice I have not only hit my goal but exceeded it. A few months like that - a windfall - a little extra part time work - even just a few extra dollars here and there. That is all it takes, "from pennies, dollars are made." See what happened last month - it was just small transactions, a few dollars here and a few there that made that month work. I can do this.

And, time is on my side. My car will be paid off in June and that will free up an extra $300 a month. I plan on taking another portion of last month's surplus and paying down my credit card. Once that is paid off, it will free up $75 a month - and at the rate of $375 a month, I could get that emergency fund funded in no time!

It won't be easy, but I know it can be done. This is going to be an incredibly productive year. I am going to work hard and make it happen.

Photo by: marielito