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❤️
