More and more now, people are forming groups in order to save money. The groups are governed by a strict set of rules, either written or unwritten, depending on the group’s literacy.
Here are 16 reason why we found joining a savings group to be a good thing
1. In the group saving is promoted and encouraged among the members as each member is obliged to deposit a prescribed amount.
2. The communal pot is deposited into a trusted and registered facility. This way keeping it from being entrusted to one member every month and avoiding “the treasurer stole our money!” complaints.
3. Generally groups operate in nine to 12 month cycles and at the end of the cycle the accumulated savings and interest are shared among the members. And each person gets to walk away with a pretty good lump sum.
4. For anyone who is new to saving or is not very good at saving this is a good way to begin saving on a regular and disciplined basis.
5. An underlying and very important aim in the group is the offering of credit to members at a prescribed interest rate.
6. Borrowing is quick and easy as there are no mounds of paper work to wade through.
7. Collateral is seldom a pre-requisite
8. Many groups aim to provide an opportunity for members to improve their respective economic and social conditions.
9. Being a member means you have an opportunity to be introduced to other financial products from time to time and are educated about them when you attend meetings.
10. Members can get new ideas, let go of things that are not working and get motivated to be self-reliant and entrepreneurial.
11. There is a co-operative spirit prevailing and members air out problems affecting the group and also help to look for solutions.
12. Attending these meetings and taking part makes one feel that they are part of something big.
13. Trust is built on good behavior within the group as well as following a set of prescribed rules that are spoken or written and are communicated or distributed to every member.
14. Meetings as a group are not only a fun moment but they are moments to share dreams and goals with like-minded people.
15. The meetings are an occasion to host or be hosted, to share meals and enjoy the company of others.
16. Groups are a social safety net; especially during a bereavement or unexpected illness as many groups have a social fund that serves a variety of emergency and social purposes (according to the rules set down).