By Palesa Matlala
- Corporate worker Mahlodi Ramele, 25, formed a stokvel with colleagues where they contribute R2,500 monthly and receive R30,000 per rotation.
- Members use their R30,000 payouts to buy furniture, pay school fees, enroll in universities and purchase cars like Ramele did.
Young professionals are turning to stokvels as a practical way to save money and achieve their financial goals.
Mahlodi Ramele, 25, has been working in the corporate sector for three years. She and 11 of her colleagues decided to form a stokvel where they each pay R2,500 per month to the group.
The stokvel started with five members and has grown to 12. Ramele said it took trust when recruiting other members to join the savings group.
The group faced a setback when one member got paid in March and vanished when she was supposed to pay others after her turn.
“That was unfair and a crime,” Ramele said.
However, that did not stop them. They recruited another member and continued with their stokvel.
Ramele said this is the quickest way to save money for big purchases.
“Imagine saving R30,000 for 11 months. I bought myself a car and I’m saving towards purchasing my house,” she said.
The members rotate payments each month. One member receives the full payout and the following month another member gets paid.
“We don’t deal with cash on hand because it is a lot of money. We make deposits. At the end of the year you have R30,000,” Ramele said.
Some members have bought furniture with their payouts. Others have paid their children’s school fees and some have enrolled in universities.
Without tax deductions, members are guaranteed to receive their full R30,000 in returns.
“Being part of a stokvel has been good for me. I’m financially disciplined and each year I achieve my financial goals,” Ramele said.
At the end of the year, the group meets for lunch to discuss the challenges and successes they encountered during the year.
Pictured above: A group of friends.
Image source: Unsplash
