Importance Of Group Savings For Lower Income Families
Saving is good but for some people, it cannot be helpful because of their financial condition. There are families whose monthly income is so low that they cannot save a good amount of money to invest it in some productive activities. In such condition, savings become meaningless. For them, group savings plan is the best option to save and utilize that money.
Alternative Saving Plan
The idea of group saving is considered one of the best methods of saving money. It is highly effective alternative saving plan for the people with low income. This is the reason this plan is popular and practised all over the world; especially in countries where the average annual income of families is low.
When you form a group with few other people and have an agreement to save a certain amount every month or week for a particular period, then it becomes easier for you to save regularly. The habit of saving should be started with a little amount. Once the habit is built then you can easily try for bigger saving plans. Moreover, you cannot miss or omit to save the money every month when there is a group waiting for you to submit the amount. Hence, group saving is good to build up your regular saving habit.
Things You Should Know About Group Savings
- It is good for the people who belong to the low-income category.
- You must form the group with the people from the similar socio-financial background.
- The saving plan can be started as the form of an informal group and later it can become a semi-formal group.
- The number of the members of the group should be decided by the member themselves.
- People who belong to same religion, ethnicity, community, locality or age group should from such groups because they have many things in common.
- It is highly important to have trust factor among the members of the groups; otherwise, they cannot form the group and follow the saving plan accordingly.
- People coming from the similar background can share similar thoughts and come with similar financial goals, so they can define their objectives easily and save the money to achieve that.
It will be the decision of the group that when and how an individual member can take the saved amount to utilize in something productive. Generally, these groups follow rotating savings plan which allows them to utilize the saving in a rotational manner. That means every member gets a chance to have the total saved amount and spend or invest it for his wellbeing.
When you come to Portia Partnership Savings Plan, you will be offered various plans. They are mostly group savings plans that are perfect for people with the low-income background. The saving and investment advice of Portia Grant will help you to build the habit of saving and smart investment; even if you have low income. You should know what type of plan will make things easier for you and be a member of a group which matched your background.