Hello Hive.
Money thrift or daily contribution is a form of saving money along side our friends in order to imbibe in or build some form of financial discipline.
Saving money is one of the most challenging things to do in life especially when there is an Inflation and one can barely pass the time. We are taught to save first before spending out of any income but in the recent economic situations what people earn in some parts of the world is barely enough for feeding talk more of saving.
In such situations it is possible to break into any form of piggy bank when your hunger level gets to its peak.
Nevertheless we all have careers, businesses, ambitions or capital projects that needs funding.
When the option to take loans is a poor idea, what are the ways we can deploy to help us save?
Personally I will not give/take loans for businesses just starting. There is usually so much challenges and not every business gets to survive its startup challenge, so many brilliant business ideas never came to spotlight after startup, it either struggles not to remain in obscurity or collapses completely.
It is really a great risk to decide to take a loan to startup a business. Anyone can run into debts when these businesses fails.
To fund your capital projects learning to save with others is a good step that builds a sustainable level of financial discipline. And for money thrift, people come together to agree on contributing a certain amount of money either daily or weekly monthly saving together into a common purse.
Each individual from such contribution has a specific purpose for his money. I might want to buy a sewing machine in the end while another man might be in need of a plot of land.
The money pulled together on such daily or weekly basis is giving to an individual to carry out his projects, at next contribution another person also inherits the monies until all the members of the team get their own payment.
Personal experience with money
thrift.
Money thrift has help me alot in the time past.
I have been able to make purchases using such funds, starting with my industrial sewing machine.
About this time last years this same manner of saving was used to settle my siblings school fees that were close to 200k naira.
We have keep the contribute going for over the period of one year contributing 20k monthly. Each month a member receives the funds to finance his projects.
Cautions to take.
While this is a good move it can also turn out to become ugly when you fail to see some red flags.
Know your team members well, their addresses and locations, there is possibilities of theft and your monies can get carted away.
Selecting some trustworthy and disciplined members is important as well as some member seem to pull out along the way crashing the trend of the contribution.
Keep proper record and account of funds as they coming to avoid financial disagreement that can lead to trouble.
You can enjoy funding your business through a disciplined saving route as this when proper care and caution is taking. Saving you of some stress and tension encountered while trying to raise funds for a capital project.