Enterprise

Joining sacco is best financial decision you will ever make

POLICE-sacco

Police Sacco members during a March 4 meeting in Nairobi. PHOTO | LUCY WANJIRU | NMG

Summary

  • One of the most powerful saving vehicles that is transforming lives globally is Savings and Credit Co-operative Societies (saccos).
  • Over the years, saccos have risen from being organisation domiciled financial institutions catering to members only to public organisations with open membership. Thus no one can claim to be left out by virtue of not being employed.
  • Perhaps what is not known to many is most saccos are admitting organisations such as business enterprises and self-help groups.

Every year since 1924, October 31st is marked as the International Day of Saving. The day was set aside to encourage the culture of saving money in order to gain a higher standard of life and to secure the economy.

However, this year the day was marked with little fanfare as many households and firms continue to struggle financially owing to the effect Covid-19 pandemic that has eroded the earnings leaving nothing much to talk about saving.

Nevertheless, it reminded us that had we saved enough in the good times, now gone we would be weathering this pandemic better. Both individuals and organization that had some modest savings by the time epidemic broke out can attest that saving is as a good as making good investment decision.

One of the most powerful saving vehicles that is transforming lives globally is Savings and Credit Co-operative Societies (saccos).

Over the years, saccos have risen from being organisation domiciled financial institutions catering to members only to public organisations with open membership. Thus no one can claim to be left out by virtue of not being employed.

Perhaps what is not known to many is most saccos are admitting organisations such as business enterprises and self-help groups.

As a beneficiary I can testify that saccos are the foremost and reliable partner in growing a business. In addition to saving for a rainy day, they offer the most convenient and cheap loan to grow your business. As long as you are an active member with required savings and guarantors or security you are assuared of fast loan compared to other lenders.

This makes sacco the best place to be if you are own or are preparing to start a business in future.

Therefore, what prevents so many people from joining a sacco and improving their lives is manly ignorant and scarcity mentality.

I have a friend who refused to join sacco when he got a job primarily because he felt the salary he was earning was barely enough to meet his basic needs let alone spare a coin to save.

Today he is surviving on half pay and I believe he is still meeting his basic needs. He is not alone.

Most of us who thought we could not save, invest or help others because our earnings were insufficient have learnt that it is not a matter of how much we earn. It is a matter of what we value and prioritise in life.

Whether you are an individual in employment, in self-employment or owning a business, your prosperity and stability depends solely on your ability to save.

Basically, money will never be enough to make saving effortless. Whether you are earning little, servicing loan, growing a business on a shoestring budget or undertaking whatever project, saving is possible but requires sacrifice. You don’t have to wait for a disaster to teach you that you can still live with less than what you thought was too little.

Mr Kiunga is a business trainer and the author of ‘The Art of Entrepreneurship: Strategies to Succeed in a Competitive Market’. [email protected]