Every little bit helps!

As a young child going to primary school I never had any extra money so I was always shocked that despite receiving the same amount of money, my sister always had extra cash. I wondered  why I was always broke! Well it wasn’t a secret after all, I simply always spent every cent I had whereas my sister kept back some of her lunch money every day.

This concept of putting aside even small amounts of money stuck with me over the years. It doesn’t matter how little the amount is as the Jamaican proverb says, “One One Cocoa fill basket’.

Savings

Many consumers have latched on to the idea that they should save that’s why the practice of ‘throwing a partner’ has thrived in our culture.  These informal savings plans allow persons with low or infrequent income the opportunity to save for a specified amount.

However it has also been popular among persons who have a fixed income as well to be a part of the ‘partner’ plan.

Of course there are risks with partner plans, however if the person appointed as the ‘banker’ is honest and the circle of persons participating comprises of persons known to you then those risks are relatively low.  Persons usually only join in partners with coworkers, friends or family making it less likely that members will disappear with the funds.

These short term loans allow persons who get the first draw to pay back the other members over a specified period of time without the penalty of adding interest as would have been applicable with loans from a financial institution.

Other Savings Options

If you are not interested in that savings option however they are other savings plans you could try. Several credit unions offer customers the opportunity to access loans within their shares which carries a very low interest rate. Of course in order to access that kind of loan then you must be a member of the credit union and have enough funds in your account.

If you don’t want a loan at all there are other ways that you can save wisely. Putting aside a set amount monthly will allow you to slowly build on your funds.  I find it helpful to do a standing order with the bank which automatically diverts the amount from your pay to a separate account.

The savings account should be off limits perhaps not even taking the card with you so as to avoid easy access to the funds. There are also options to save your money in a fixed deposit account where you are unable to get access for either 30 or 60 days.  These accounts are excellent for saving for long term goals.

Regardless of whatever avenue you choose ensure that you commit to continuing the practice of saving regularly.  Even if the amount might seem insignificant now, it can grow steadily and enhance your finances.

So what’s your take on the issue? Drop me a line I would love to hear your thoughts!

Teri Ann Renee Paisley

Gleaner online writer

Tags: deposits, loans, saving