A few things about SACCOs:
You make money in two ways:
1/ Share capital - This is where you buy shares of the SACCO.
You then earn dividends every year depending on how the SACCO has performed
2/ Interest on deposits(rebates) - This is the interest your savings earn.
You make money in two ways:
1/ Share capital - This is where you buy shares of the SACCO.
You then earn dividends every year depending on how the SACCO has performed
2/ Interest on deposits(rebates) - This is the interest your savings earn.
What should you optimize for? More share capital or more deposits?
For most SACCOs, the dividends yield is higher compared to the interest on deposits.
Hence, to make more money, it would be wise to buy more share capital
For most SACCOs, the dividends yield is higher compared to the interest on deposits.
Hence, to make more money, it would be wise to buy more share capital
However, this comes with a little bit or risk since in case you want to exit the SACCO, you will be forced to sell your shares.
Most people do so at a discount hence incurring some losses.
Most people do so at a discount hence incurring some losses.
SACCOs are widely used as credit avenues due to their friendly terms.
You can borrow 3-5 times your savings and you do not necessarily need collateral for your loan.
But you will need guarantors.
You can borrow 3-5 times your savings and you do not necessarily need collateral for your loan.
But you will need guarantors.
It is therefore advisable you join the same SACCO as your friends, relatives or work colleagues
So that you can easily get guarantors.
However, be cautious before you act as a guarantor to somebody's loan.
If you are not ready to clear the loan in case they default, keep off
So that you can easily get guarantors.
However, be cautious before you act as a guarantor to somebody's loan.
If you are not ready to clear the loan in case they default, keep off
If you would like to learn more about SACCOs, see this thread below.
I'll be sharing more about SACCOs, MMFs, personal finance and investing this Saturday on my July Personal Finance and Investing Masterclass.
See this thread below for registration and also tips of what you can expect.
See this thread below for registration and also tips of what you can expect.
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