What are the advantages of stokvel?

Benefits of joining a Stokvel

  • The peer pressure will force you to save.
  • Pooled money can earn better returns, at a lower cost.
  • Some of the added benefits are a sense of community and socialising.
  • You may learn something.
  • Knowing when you will receive a windfall amount makes it easier to plan your finances.

What is an example of stokvel?

The members of the stokvel share a common goal for saving such as December groceries or a wedding or investing in property or the stock market. For example, a group of young professionals may get together and save in a stokvel so they can buy properties to rent out.

What is a disadvantage of a stokvel?

Disadvantages. Stokvels relating to Burial Society’s may not provide enough cash for a burial and the family must pay for the funeral of a loved one out of their own pocket. Fighting between members of the Stokvel may lead to problems.

What is the role of basic stokvel?

A basic stokvel is used solely as savings fund for important situations such as medical costs, festive season costs or a death in the family. A grocery stokvel is used to save for household items that all members need on a monthly or yearly basis. The funds are distributed when the period of saving has ended.

How does WhatsApp stokvel work?

How do these work? People are recruited to join a WhatsApp stokvel group (using a WhatsApp chat group) by paying a joining fee. So, in order to be added to the group, you have to pay up. The average joining fee is R200, with the promise of around R1 000 return if you recruit two people into the group.

Is stokvel a good investment?

A property stokvel can be an excellent investment vehicle as a form of passive income, since the money stokvel members get from rent income, for example, is not subject to inflation and easy to file taxes on – without many complications – among other benefits.

What are the 8 different types of stokvels?

Types of Stokvels

  • Types of Stokvels.
  • Rotational Stokvels Clubs. These are the most basic form of Stokvel, where members contribute a fixed amount of money to a common pool weekly, fortnightly or monthly.
  • Grocery Stokvels.
  • Savings Clubs.
  • Burial Societies.
  • Investment Clubs.
  • Social Clubs.
  • Borrowing Stokvels.

What are the rules of stokvel?

Code of Conduct No member will use the name of the Stokvel for personal business purposes or personal gain. Each member will be expected to conduct him or herself in a socially acceptable manner at the meetings. Members must dress in a socially acceptable manner.

How does stokvel make money?

Stokvels make money in various ways, including purchasing items that they can rent out at a fee for special occasions like catering pots and gas stoves.

What are the activities of stokvel?

In this form of Stokvel, members contribute a fixed amount of money to a common pool on regular intervals, and each member receives a lump sum equal to their monthly contribution at the end of the cycle, usually annually. Typically, such finds are collected in cash, stored in a Stokvel Club Account held at a bank.

How do you grow money in stokvel?

Starting your stokvel is easy:

  1. Decide on the type of stokvel and the rules.
  2. Recruit members from your inner circle.
  3. Open a stokvel account. All major banks in South Africa have stokvel accounts.
  4. Put money in.
  5. Reap the rewards.