South Africa's underground R49 million economy is open for business
It started out as an informal short-term savings scheme in the 1800s. Since then it has evolved into a R49 million investment vehicle that services about 8.6 million South Africans.
This revolutionary system allows people to save money for groceries, school fees, funerals and even lavish holidays. With a minimum of 11 savers in each group, this underground system encourages trust between members, improves South Africa's savings culture and ultimately removes the financial burden from thousands of South African households.
It's a burgeoning financial system that really works. It's already a widely accepted economic system that is governed by a set of rules developed by the people of South Africa.
Now, I want to show you how to get your slice of this R49 milllion pie and improve your lifestyle one contribution at a time.
How to mould this multimillion rand system to meet your long-term investing needs
Of course, I’m taking about starting your own stockvel. If you snickered when you read that, then I suggest you keep reading, because you’re missing out on some exceptional wealth building benefits if you ignore this.
4 benefits of joining a stockvel
1. The pressure from your peers will encourage you to save
One of the biggest flaws in South African households right now is that we spend more than we earn. By starting a stockvel, you become part of a group of savers and investors that depend on your contributions to make it work. There’s nothing like a little peer pressure to get you to start saving your money.
2. Pooled money gives you greater returns at a lower cost
The more money you have in a stockvel, the better your returns will be. Just like investing, a small amount of money limits your exposure to the markets. Small sums of money also feel banking costs more. But when you have a larger amount of cash shared between many people, you can spilt the banking fees, get greater exposure and increase your returns substantially.
3. It encourages a sense of community and trust
One of the biggest problems in South Africa today is a disconnect between the people of the country. When you start a stockvel, you create a sense of community and trust between the people in the group. You are able to socialise more, build new relationships and find new opportunities to grow your wealth in the South African market.
4. You can plan your finances better
As a member of stockvel, you know when you’ll be getting a cash injection. It’s clearly stipulated in the rules of the investment club. Now, you can plan your holidays, parties, weddings and major life events more effectively without spending money that you don’t have.
Last, but not least, being a member of a group of people that are serious about building their wealth will give you the opportunity to learn from their personal wealth building experiences. This is your opportunity to learn from the mistakes of others so that you don’t have to make the same mistakes again.
To find out more about starting or joining a stockvel, visit the National Stockvel Association of South Africa’s website http://nasasa.co.za/