Start Your Savings Group
How to Start your own Savings Group
Millions of people round the world are members of Savings
Groups. If starting a Savings Group is a stimulating idea to you, then this
manual is for you. You don’t got to be an expert, but there are some belongings
you will got to believe , and this manual contains information from people with
many experience with many experience. it's going to offer you the arrogance you
would like , and answer your questions. And, we recommend that additionally ,
you discover a teacher (go to www.StartYourSavingsGroup.com) to assist you once
you start a gaggle . there'll be questions that aren't during this manual, and
a teacher – someone who has been a member of a gaggle – are going to be ready
to give the solution , or find it for you.
What is a Savings Group and why do it?
A Savings Group may be a group of about 10 to 25 people that
know and trust one another , and meet regularly to save lots of money. They
promise to save lots of a minimum amount regularly, and observe all the
principles of the group (which all the members agree on before they begin).
After they need saved money, they will start to offer loans to members who want
them. Interest rates and loan terms and savings procedures are all decided by
the group and put into a written constitution. Many groups even have a social
fund, to assist out people in need, consistent with rules decided by the group.
there's a sample constitution available for you at
www.StartYourSavingsGroup.com.
People say they like three things especially about Savings
Groups. First, they're fun and social, and convey people together; members
learn from one another , and devour ideas to form money, economize , and invest
wisely. Second, they assist people save quite they might otherwise. Finally,
they empower people; Savings Groups don’t replace banks, but they are doing
make people feel more on top of things of their own financial lives, and
thereupon control come feelings of independence, confidence, and initiative.
How it works
A Savings Group meets regularly, hebdomadally or every fortnight
or monthly , for a few year, and at the top of the year there's a share out. At
share out each member takes the cash they personally saved. Then the group
divides any extra cash they need earned through interest on loans or fines,
then they start a replacement cycle. Once there are enough savings, members can
borrow, consistent with rules laid call at the group’s constitution.
Like any club or association, the Group has officers:
usually a chairperson who runs the meetings; a record-keeper who records all
the transactions carefully; and a treasurer who is liable for the security of
the cash. Many groups even have key-keepers, who bring the keys to the lockbox
where the records and therefore the money are kept, and money-counters, who
count the cash in cash transactions ahead of the group to assure accuracy and
transparency.
Getting the members together and starting the group
A Savings Group usually starts when one or two people invite
their friends to make a gaggle . Often, they tell their friends to ask their
friends. this suggests that initially , you'll not know everyone within the
group, but most are a minimum of a friend-of-a-friend, and soon you'll know
everyone.
When enough people have expressed interest, it’s time to call an introductory meeting. At that meeting, the organizer explains what a Savings Group is, then invites those people that have an interest to return together. to assist decide if they ought to join a gaggle , prospective members should undergo the Self-Screening Exercise at the top of this manual. Once there are people committed to being during a group, their first task is to write down the group’s constitution; this could be through with care , to make a decision beforehand how the group will affect unexpected events.
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After the constitution is written, there are a couple of
purchases to form , usually a cash box, a journal, pens and pencil, and a
calculator. Then, subsequent task is to line the date of the primary savings
meeting.
How often to satisfy . Where to satisfy .
People will save more and therefore the meetings are going
to be shorter once you meet frequently. So, it’s best to satisfy hebdomadally .
However, many of us think they're too busy for that, so instead they meet every
fortnight , or maybe monthly .
You choose where to satisfy . Many groups rotate between
members’ homes, especially if their meeting procedures involve a meal before or
after the business is transacted. Others meet in one home that's large or
convenient, or for security reasons. Others meet during a church hall or other
public space. One factor determining where you meet is confidentiality: most
groups don’t want people seeing their funds changing hands, and that’s wise on
their part.
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How to keep your money safe
Every group must believe the way to keep its money safe;
again, there's not one method that matches the requirements of each group. Here
are some general principles which will assist you believe this.
• Security involves keeping two thins secure, your cash and
your records: you would like to form sure that nobody takes your cash, and at
an equivalent time, you would like to be confident that nobody has changed the
records in your ledger since the previous meeting. Most groups keep the ledger
within the same place because the cash.
• Trust is important , but even with trust, you would like
to possess good controls. nobody should ever mind that their work is being
double checked.
• For most of the year, there could also be little cash to
stress about because tons of the cash are going to be lent bent members who
took loans. the foremost sensitive time is towards the top of the cycle, when
people are saving all year; you'll stop making new loans, and await all the old
loans to be repaid.
• In the rare cases where groups have had thefts, it's often
been a lover or loved one who took the cash . Make it a rule that members never
mention what proportion money they need saved, once they meet, or how they keep
the cash , either face to face or on social media.
Here are some ways in which different groups keep their money:
Cash box. Many groups use a locking metal cash-box. These
are available for about twenty dollars at office supply stores. One member
keeps the box and another keeps the keys, assuring that the cash and records
aren't touched between meetings.
.
Safe. If you're lucky enough to satisfy during a location
that features a safe that you simply can use, that gives additional protection
against outside theft. However, if people use the safe, you would possibly
still want to stay the cash during a lock box inside the safe, to assure that
the cash and records haven’t been tampered with.
Bank. If you reside near a bank or depository financial
institution , you'll keep your excess cash there. inform your banker what you
would like to try to to and have them tell you ways your group can have a
fanatical account; requirements will vary thereon . you've got to form a
decision if you would like to make loans by cash or check, and if you would
like to simply accept savings by check.
e-Money. There are an increasing number of the way that
members can send money to every other using their phones: a number of them are
Paypal, Apple Pay, Google Wallet, Samsung Pay, Walmart Pay, Circle, Venmo and
Square. All are easy enough to use, but they need different fees, require
different phones, and in most cases, your members will need to tie the app to a
mastercard or a checking account . The list is consistently changing, and
therefore the companies are continually improving their products and services.
within the end of the day , we'll probably use e-money for everything, but
you'll want to start out off with simple cash.
Why and the way to share out
We have mentioned the share out already: the group sets a
date to offer all the savings back, usually after a few year. Two or three
months before that date, the group stops making new loans, and every one the
members repay any outstanding loans. Every member receives back all the cash
they need saved, and a proportional share of the cash that the group has earned
through interest on loans, fines, or other sources. Groups may schedule the
share out at the time of year when most of the members are going to be happiest
to receive a bundle of cash .
Immediately after the share out may be a perfect time for 3
things: (1) any member who wants to go away the group can do so easily, because
they need received everything they're owed; (2) new members can join with the
group’s consent; and, (3) members can change parts of their constitution
–things just like the minimum savings amount, or the utmost loan amount, or the
rate of interest on loans.
The share out serves three purposes: it keeps the quantity
of cash controlled by the group from going to be too large; it gives people a payment
at a time that meets the requirements of members; and, it's a kind of audit,
because any questions that have arisen during the cycle got to be resolved.
Not all groups do the annual share out, but – a minimum of
for the primary few years – it's strongly recommended that you simply do so.
What else to do?
Some groups start other activities – they'll plan to invest
together, or do recreational activities together, or perform social or
charitable activities. this relies totally on you. We recommend that for the
primary cycle, you limit other activities until you're certain that the group
is functioning well. If you opt to feature other activities within the future,
confirm that each one the members want to try to to them, and confirm that the
time and resources invested within the other activities don't take an excessive
amount of energy faraway from the straightforward functioning of the group.
1. Are you reliable and honest?
2. Are you disciplined and mature enough to participate
fully at meetings?
3. Will you be fair, even once you are handling close
friends or relatives?
4. Are you assertive enough to confront others if problems
arise?
5. Are you ready to share your opinions publicly with all
the group?
6. does one have time to attend most of the meetings?
7. Will you discover the cash to save lots of regularly?
8. Will your spouse and family support you in being a
member?
