5 things to consider before joining a stokvel

Most people are in the habit of commiting themselves to a form of stokvel which they call “round”. They take turns to give each other monthly subscriptions. These five tips will help determine whether you can be able to make such a commitment.

1 Always make sure that you have a steady flow of income. Committing yourself to round requires a monthly or weekly allowance that you have to part ways with. Make sure you have adequate means or savings that you can use to pay up.

2 You must look for the right people to patner with on such a quest. So many people have vented their anger and disappointment after being let down by untrustworthy partners. Imagine the disappointment of not receiving your dues when you have been paying religiously for other people.

3 Have a set goal. Playing these rounds means you have a specific target to reach. Some people commit themselves in order to by a valuable asset or invest in some business project that will ultimately give returns. Doing it just for fun will defeat the whole purpose of having joined in the first place.

5 You must know when it is time to stop. You do not want to be a perpetual debtor by having to fork out money every week or month without an end. If you manage to achieve what you would have set out to buy or invest in by joining the round then it is best to leave when that mission is accomplished