Getting the Most Out of Your Stokvel Experience

Getting the Most Out of Your Stokvel Experience

iFestive isisfikele (the festive season is here) and this is a joyful time for stokvel members.

 

What’s so great about Stokvels?

Stokvels are a good way for family members, colleagues, friends or fellow church members to come together and save money. When there is always a pair of shoes or a new device that just “needs” to be yours, New Years Resolutions about spending wisely and saving more unfortunately don’t last long. But when you make a pact and commit to saving with a group of people that you share the same financial goals with, somehow saving seems easier.

 

Stokvel and Community

Ubuntu is a word that is generally used to describe the community of `Mzansi, and stokvels are testament to this. Stokvels allow members of a community to assist and support each other in saving and providing for school fees, groceries, funerals and celebrations. Sometimes the support of a stokvel goes beyond simply financial help . Some members go as far as assisting in food preparation and the washing of dishes after important events such as funerals and weddings.

 

Getting the Most Out of Your Stokvel

Stokvels have evolved in a number of ways over the last few years. These days, stokvels can take the form of sophisticated unit trusts. Some are even exclusively for borrowing and those who borrow money pay it back with interest.

As it comes to the end of the year, think about your financial goals and decide on a strategy that will help your stokvel reach that goal most effectively in 2016. Take a look back at your 2015 stokvel and learn from its mistakes and successes. Rather than simply continuing in the same manner, implement changes based on your learnings. Whether these changes are big or small, they’re bound to have a positive impact on your saving going forward.

 

Spending that money

Many people consider their stokvel payouts to simply be lump sums that they can spend all at once. While the end of the year is a wonderful time to reap the rewards of your stokvel savings by spoiling yourself and your loved ones, it also presents you with a great opportunity to save for the future.

Don’t let the excitement of the festive Christmas season cause you to lose sight of the reasons you decided to join the stokvel in the first place. If your aim is to create wealth for the long term, or to build up savings for emergencies or big purchases, choose to be strategic about how you spend your pay out. Commit to saving a certain percentage and either putting it into the next year’s stokvel or investing it elsewhere.

If you start the festive season with a plan in mind, you will be more conscious of how and why you spend money. In this way you’ll be able to spend more wisely and save more effectively.

 

Tips and tricks

  • Be smart about who you form a stokvel with. Make sure that the people in your stokvel are people you can talk to, depend on, and trust.
  • Meal shares in a stokvel are a must! If it is your turn to host one, plan your menu well in advance. As you know, you can always rely on Rajah Flavourful and Mild curry powder to give your stokvel sishebo that vava voom.