PICTURE: PEXELS
In 2024, your budget might have been too tight that you even struggled to save the bit of money you earned, as rain days came more often than you expected.
For some of us, saving becomes a challenge where between paying off your bond, monthly groceries, and just your daily expenses certain occasions such as deaths, sicknesses or being hospitalised can cause one to break their budget completely.
While financial intuitions encourage consumers to save their money through investment plans, stokvels have become popular in our local communities as you are initially the money you saved comes back to.
According to financial hub, Stokfella, by becoming a part of these stokvel organisations you can achieve your financial objectives by combining savings, community support, and financial empowerment, adding that the new year can be an excellent year for new and existing members to join.
You are probably wondering what the procedure is when joining and what the return on investments is.
(Think of it like this: you contribute R200 monthly to the organisation and if there are 10 members you will receive R20,000 when it is your turn as each member will have a chance to receive this sum.)
Liberty provides the different types of stokvel you can join:
- Rotational clubs: Members contribute a fixed amount to a common pool weekly, fortnightly, or monthly. They receive a lump sum on a rotational basis.
- Grocery clubs: Members contribute a fixed amount to grocery purchases at the end of the year.
- Savings clubs: Members contribute a fixed amount to a common pool at regular intervals. They receive a lump sum equal to their monthly contribution at the end of the cycle, usually annually.
- Burial societies: Provide an informal but reliable form of insurance for funeral costs and practical support during preparation.
- Borrowing stokvels: Saves money into a pool and uses it to loan money to members and sub-members.
In 2025, you should look to make better financial decisions as it will help you have a better relationship with money.
Stokfella also highlights the reasons why people should join them, as individuals can use stokvels to save with a goal in mind, while also receiving accountability and assistance. They create a firm framework for saving, keeping people motivated and supporting one another.
Also see; Unlock the superpower that can transform your financial journey
