MY TAKE ON THRIFT CONTRIBUTION
Kindly note that this post is not a financial advice
If I were to define thrift contribution in my own words, I’d define it as a financial solution formed and developed by a group of people to save or gather funds to help one another. They gather money together and start rotating the collection among themselves. This group can consist of as low as two people and no matter the number of people involved in this, they usually have a common goal. Their contributions could be weekly, bi-weekly or monthly, depends on the agreement made by all the members of the group.
Thrift contribution is a very old method of saving money and gathering money for different purpose. There are big associations built for this cause, and they can be very professional as well. When I was still much younger, I used to wonder why people do thrift contribution when they are not actually gaining anything from it. It is still the same amount of money they contribute that they get back. Now, I see the importance of it and the fact is that, many still don’t see it.
I have people I have had conversations about this topic with and they just don’t buy the idea of thrift contribution. I was having a conversation with my uncle’s wife last year and she was telling me how much the thrift savings she does has helped her greatly in her business and in her life in general. I also joined one at a time, but it was more like savings for me.
However, this is what I think about thrift contributions:
I think it’s a very good way to save money, maybe towards a particular thing or for unforeseen circumstances. Even if you pick the last number, you will be amazed at how much you have been able to save for the period of time. I also think that it is very good for entrepreneurs to boost their capital and also help their businesses grow well. It’s like getting a loan and not paying any interest on it.
However, there are some disadvantages that can not simply be overlooked.
I think it’s quite advisable to do this contribution with people you know well and also with people that are serious-minded. You should do it with people you know well because I have personally heard stories of people running away with thrift money or lying that the thrift didn’t happen, etc. Also, choosing serious-minded people to contribute with means that you all have a common goal and they wouldn’t default in making their payments when time comes.
There is always that part of sharing numbers as well, to according know how the money will be distributed among everybody. Now, your reason for joining the contribution should determine the number you should go for. A person that wants to use the money for business should actually choose an earlier number while someone who just wants to save should go for the later numbers. That’s my own personal opinion, and of course, I know situations will be different.
As for me, I will really prefer early numbers between 1 and 4 whenever I join any thrift contribution. The reason is to use it for my business. Then I will use the profit I get from selling the goods I purchased with the money to pay for the subsequent months and also re-invest the rest of the profit into my business.
I think the person that actually invented this method of saving is actually very brilliant.
HAVE YOU EVER SAVED MONEY OR GATHERED MONEY THROUGH THIS METHOD BEFORE? DO YOU RECOMMEND?
Thanks for reading❤️
I think thrift is great for getting capital in time. For savings, not so much. I'd rather keep my money myself somewhere my eyes can see it. I don't think I'll ever try thrift anyway.
Have you ever tried InLeo before, Ardor?
Can you shed more light to this inleo @olujay
Of course!
So, you see, there are many frontends on Hive. A few that you are likely used to are PeakD, Ecency, and Hive.blog. InLeo is one of them, and it is by the Leofinance community. What's different about it is that there's a microblogging feature, like tweets on Twitter but called threads instead—and it is buzzing with activities. All you have to do to get in there is to login here or simply go to https://inleo.io/threads and login. Ask me questions if you have any.
Oooh! I got it now.
Thanks for your time @olujay ,I will beep you whenever I need help
It takes a lot of discipline to save money for yourself and not take from it if you need it urgently. However, if this works for you, there's no harm in saving yourself, it is even safer.
Oh yes, I have definitely tried InLeo before.
with your aim I think It's better to be among the first people collecting the contribution so you can invest in your business, other than that, I don't support thrift contribution most times because of the lots of headache attach to it... Working with people generally is not actually an easy task and that's what I'm afraid oo
Oh, I get your point and I totally agree with you. However, if everyone starts to aim at the early numbers, who picks the late numbers then?
About the headaches of thrift contribution, that is a valid concern for real. That’s why it is important to be very very careful and know the kinds of people to deal with.
A lot of market men and women still do this alot. Infact, one came to me two days ago to join but obviously I declined because I can comfortably save money in hbd and be earning interest. The good part of it is the picking early number and then using the money contributed by others to do your bussinnes and make profit to keep contributing for others but like u mentioned, you must do it with people you know...cos two friends of mind lost their hard earned money to thrift
Sincerely, I don't see myself doing this even in the future but for those market women, it's a good way for them to save of only they are doing it with trusted team
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Oh my, I know people that have lost their money to thrift as well. There have been a lot of people coming online to start the contribution and people just trust blindly and give them their money. If I don't know the person, I'm definitely out. I love your own form of saving, I do that too.
At the same time, I am a business person and I have really been considering joining a thrift contribution. I'll have peace of mind with it because my uncle's wife is in charge and she is a really credible person.
Hmmm! The contribution I know has been saving my ass since I started earning salary. I have used this contribution to do a lot and other members too
Ours is monthly contribution which I àm a part of the coordinators. Presently, I have been coordinating since two years now, no cause for alarm.
50k for 12people and salary earners only, payment automatum is 24hours after the salary is paid and this for serious minded alone. No story, no delay.
My take, make sure those you are dealing with are genuine.
Wow, this is very brilliant of you guys to do. It's a good way to help save out of your salary and not spend everything as it comes.
I know a lot people that really leverage on this thrift contribution especially for their businesses.
I have raised money severally through this method. In addition to helping one raise business capital or save money, it encourages financial discipline. If the amount is 50k or 100k, you already know that it's a must to cough that amount out monthly (if it is monthly). If one is saving by himself, he may not be so discipline to maintain the amount without any reason to fluctuate it in some months. I love doing it with trusted people.
Exactly, it takes a very disciplined person to save personally and be strict with himself to always save the required amount and to not touch the money as well.
Thank you very much