Why do people save together?

Farran
Farran
Sep 7, 2018 · 2 min read

People have been working together to help each other reach specific financial goals for decades, often starting at home and branching out in much of an ‘I scratch your back, and you scratch mine’ fashion.

But what motivates people to save together?

Simply put, more people means more money and, therefore, higher returns.
A little goes a long way when a group of people contribute towards a goal over a period of months.

Let’s look at some of the motivations and benefits of why people choose to create savings groups.

Learn more about investments in a safe and trusted environment.
Many people don’t know how or where to invest their money. Choosing group members who you know and trust puts you in a space where you can share knowledge and experiences and learn together. This takes the fear out of investing and can make the experience fun!

Pool money and enjoy cost-saving benefits on fees and transactional costs.
By making one joint payment instead of multiple smaller ones, you save as a group on costs like commissions and other transaction fees. By saving on these fees, you will have more to invest.

Network with like-minded people and share common financial and social goals.
Social savings clubs are built on trust. The members of your group are your tribe and you are accountable for your contribution towards this shared goal. This means each member is less likely to lose momentum and miss a payment.

Encourage and be encouraged to achieve financial goals.
Peer pressure can be a great way to keep people honest about their saving behavior. In this respect, physical meetings help to not only sort out the administration of group saving, like collecting contributions, but also serve as an excellent opportunity to motivate one another to save and share experiences.

Struggling to build your nest egg? Why not start a social savings club with Hatch… visit www.gethatch.co.za to sign up!

“If You Want To Go Fast, Go Alone. If You Want To Go Far, Go Together.” — African Proverb

GetHatch

Hatch is a social savings platform that encourages people to save for specific goals as a group.

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