What are the benefits of saving in a savings group?

If you are wondering why you should join a savings group or why you should save as part of a group instead of saving on your own, this post will provide you with the answers. In this post, I will explain the benefits of saving your money as part of a savings group as compared to saving as an individual. My aim is to help you understand these reasons and encourage you to join a savings group.

Before we proceed, if you are looking for a savings group to join and you don't know where to find one, or if you are looking to manage an existing savings group but don't know which platform to use, or even if you are creating a new one and want a platform to manage the members, Pesasave is here to help you.

Now, let's look at the advantages of saving as part of a savings group.

Benefits of saving in a saving group?

1. Financial Discipline: Being part of a savings group encourages regular saving habits. Members typically contribute a fixed amount at regular intervals, promoting financial discipline and responsibility.
2. Access to a large pool of money. In a savings group, individuals are able to pool a large sum of money when they come together and collect it as a group and each member of the group can obtain that money say through loans or through cash rounds and they use it to fund their ventures
3. Earn interest. Most savings groups provide loans to members and some give loans even to non-members, there's loans generate interest interest that is split between the members of the group. This is an easy way to earn interest on your money while you accumulate it for a future endeavour and most times its better than what banks give per annum.
4. Access to Capital: Savings groups often pool members' savings to provide loans to members who need capital for various purposes, such as starting or expanding a business, paying for education, or covering emergencies. This access to credit can be crucial for individuals who lack access to formal credit sources.
5. Access to low-interest collateral-free loans. In most savings groups, members are allowed to take out loans, these loans are usually of lower interest compared to loans from traditional institutions like banks.
6. Social Support and Networking: Savings groups foster a sense of community and mutual support among members. Participants often share financial advice, resources, and expertise, creating a network that can offer emotional and practical support.
7. Access to bigger loans from banks. Established saving groups in the form of saccos, can go to banks and get a bigger loan amount which in most cases cannot be given to any one member of the group as an individual

While all the above are advantages of joining a savings group, for me the most compelling reason for joining a savings group is to

Help those who are less fortunate than i am

All the above benefits might not excite you if you're having a bit more than you need but by joining a savings group with your friends, family or workmates who are less fortunate than you are, you give them a chance to use some of the resources you have to develop themselves without any losses on your side. But also if you join a savings group with people more fortunate than you are, you still benefit... It's a win-win, either way.

At least for me, that's why am part of savings groups

If you are interested in joining a saving group or you are already part of a savings group and want better ways of doing savings. Consider joining the Pesasave app today