A saving circle (group savings) could be one of the most creative inventions in the 21st century when it comes to personal finance. At the very least, that’s what we like to think.
Anyway, here’s a question. How would you like to get your financial advice from a book that compiles 4000-year old parables and stories of men who went from nothing to being wealthy, while teaching you how to do so?
The most outstanding example of such a book is none other than George S. Clason’s The Richest Man in Babylon. Although created in 1926, the book only gained relevance during the stock market crash of 1929, and the period that followed the economic depression. Today it is regarded as a reputable classic of personal financial advice.
Yet, this is not an article about Clason’s book (although it’s a masterpiece for anyone looking to plump out their pockets), it is an article that closely knits with the first of the rules to wealth presented in one of the most talked-about Babylon’s parables when it comes to money (rule One — Start Thy Purse to Fattening).
Here’s an excerpt you should see:
“Then,” continued Arkad, “if each of you desireth to build for himself a fortune, is it not wise to start by utilizing that source of wealth which he already has established?”
To this, they agreed.
Then Arkad turned to a humble man who had declared himself an egg merchant.
“If thou select one of thy baskets and put into it each morning ten eggs and take out from it each evening nine eggs, what will eventually happen?”
“It will become in time overflowing.”
“Because each day I put in one more egg than I take out.”
You see, saving can be one heck of an uphill task even just thinking about it. After all, what you earn is only good enough for a shoestring budget. Or even when your earnings are more than ‘pocketful’ you find yourself heavy-spending before you are cautious enough to stoop on the ‘yellow spend road and stop the binge. This is where a saving circle app can truly help.
The way saving circle work is incredibly simple. A small ‘army’ of 10 to 80 (or any number less than a hundred) people enter something similar to a partnership — only this time, they are not in a business, but simply saving money for a specific goal or even something as varied as changing their financial status.
Saving is not something most people do (that’s why savers are like armies).
One 2018 article from www.money.cnn made a statement about how the average earner spends their earnings. Here it is in a nutshell:
Even though we spend a lot of money with our friends…we hardly ever save together.
A spending spree is great. There’s fun, no gibe but great vibes. And of course, fancy boxes of new things. How about a saving spree? (Oops, that’s an unknown word around here).
You see, where saving can be difficult, saving circles make it fun, challenging, and focused. You have an objective — a specific goal you hope to attain, and together you and your friends work to attain that goal by saving bite-sized amounts (or more than ‘bite-sized’ amounts, depending on what everyone agrees). Sometimes, the basic desire to never be the least or defaulter in this group of savers would make you go the extra mile to never miss a day (or week, or month, or whatever interval you and your ‘partners’ set). Do you see how this improves accountability without demanding any extra efforts?!
At the end of a specific saving period, each member receives the total payments collected over that period. The process continues till everyone in the group receives their payouts.
Saving circle is a reliable way for reaching a specific financial goal. Although it is not some novel and innovative method of saving money, or one of the newest cutting-edge technologies — it has existed for centuries — it works and is a reputable model for ‘fattening your purse’. Discipline among members, mutual accountability, and mutual support makes group saving not only cohesive but effective too!
Still, there’s more you could learn about this method of saving money.
Here’s something Corey Bozarth, the product director at Yahoo Finance said about saving:
“People want help saving for themselves. They complain I can’t put aside money. But it is so easy to get into savings. They appreciate accountability in a group setting”
Are you nodding already at the truth in this statement? Accountability has always been the issue with saving better and more productively, having people with like minds around you, working towards similar goals make the entire venture more yielding, since you are challenged to save.
Still, there’s more.
When you come into societies where the per capita income is low, and there’s very little access to top-notch banking services and investment opportunities, the group saving method becomes a go-to model for the people in these societies interested in saving money. They can access better investment options after pooling enough money from their savings activity — even obtaining the once inaccessible investment options from financial institutions.
Sounds like a great enterprise, right?
Like with most ventures, there are always those who succeed and those who watch the winners learn. Here are the most prevalent features of active saving groups we’ve captured:
Think about this for a minute: a lot of low income communities are unable to access good financial services. Saving and investing money becomes more or less a privilege (based on social class than a public service). A financial context of this nature negatively impacts the culture of saving across these communities.
This is where group savings apps are saviors and kings. By implementing the age-long model of saving into easy-to-use apps AND even providing easy access to services once carted away from the reach of economically lower-class communities, these apps are transforming how savings and investment are done. Simply put, they are impacting the culture of savings and welcoming real people who are interested in accessing good methods of saving their money.
Group saving apps makes investing:
These apps take away the verbose and wearisome processes involved in saving money, making it an interesting and adventurous venture whether you save as a group (or an individual).
Saving circle members (or group savers) can save money any time, and even for different available objectives or goals. Managers of these groups can securely withdraw, and make contributions without hassles. All you need is a login and a password.
– Free or Low Priced: no saving circle app should be too expensive to use. Some of the apps are even free to use, and rarely charge interest rates when you save with them.
– Goal Creation (or selection): what is a saving circle app if it lacks a goal creation feature? For the best apps, there’s always a way to set goals, or new objectives and work towards them (by saving).
Some apps even give you rewards for successfully achieving your group saving goals. Rewards can be coupons, bonuses, or even real money!
Regardless, you should simply pick out apps that have more features that match your objective, and progress on your journey.
– Automated Processes: automation is something we all want. It’s convenient and time-saving. And who says a saving circle app should not have one? Simple recurring activities like deposits from group members, payment at specific times, are automated for ease of application usage.
– Transparent: there should be no hidden charges you didn’t agree to. Group members should also be able to see how much they’ve saved, and for what goal or objective. The complete saving process should be transparent for everyone to follow.
Are you interested in creating a savings circle, saving with friends and family? Then you should consider GuardianWealth.
You get to:
Here’s all you need to do:
Here’s one Scottish proverb that holds a lot of meaning in this context (maybe it’s one you’d want to think about):
“From saving comes having”
It’s simple. It holds its own truth.
Back to saving circle. The best saving circle apps take the traditional method of saving and deliver the entire package in one fell swoop. They contain features that come with nearly everything you need to successfully meet your savings objective. Every activity from deposit to withdrawal and payment of group members is simplified, with some steps being automated based on your settings.