With the financial pressure that we all seem to be experiencing lately, we’ve heard a number of friends and family say it is ‘impossible’ to save if you’re living on a low income. Does this sound familiar? Perhaps you’ve felt the same way?
When budgets are tight to the point of not meeting even basic needs, is it still possible to put money away or is there a ‘minimum earning requirement’ for saving?

Saving on a Low Income: can it be done?

What do the Numbers say?

Research shows that stokvels have helped poverty-stricken families to improve their quality of life even in the case of unemployment. This is where a stokvel member will make his or her contributions using income from the support of his or her partner, who is employed. What this shows us is that even if you have no income of your own and are living below the bread-line, it is still possible to still make a plan to put money away in one form or another, so as to help improve your future economic situation.

Avoiding the Debt Trap

One of the problems South Africans are experiencing with their finances at the moment is the increasing pressure from being in debt. Belonging to a stokvel, can in fact, act as a means to help you avoid debt (for example in the case of making larger purchases for items such as vehicles or furniture that you might otherwise be tempted to pay for on credit). By exercising some patience and discipline, these purchases can be made using your pay out from a stokvel, thereby saving you additional money on the interest you would have paid. Stokvels can also act as a mechanism to help you pay off debt. You can use your pay out to settle with outstanding creditors and take off some of the financial pressure.

At Stokfella, we believe in the power of group savings because it is a system that has worked successfully for generations in South Africa and we aim to promote its positive effects as much as possible whilst helping to minimize administrative headaches through our app.

Help us Help You

Help us continue to help stokvels to streamline their administration and in doing so, to help empower your fellow South Africans to take charge of their financial destiny. At the same time, you will be helping us get the recognition we believe that African, home-grown resources such as ours deserve.


Vote for us in the upcoming African Fintech Awards. All you have to do is fill in your details and add your vote for StokFella — click here to show your support now!