|
 |
|
|
Paluwagan Savings Scheme
By Novem Laguna
Is there a savings scheme in your place where you are forced to save money with the help of your friends, officemates or neighbors?
In my country, a savings scheme called paluwagan is popular. It is simple, easy to manage and accessible to every participant. We don’t have to go to the bank. More importantly, we won’t have any reason to say we forgot or failed to save.
In one way, it can also be considered a loan scheme, as will be explained later. Paluwagan operates this way: A group of 10 or more agrees to pay a certain amount each period. It can be every day, every week, every 15th or 30th, or any other payday. The total money collected each collection day will be given to the person who’s scheduled to receive the money on that day. The schedule for recipients is typically set by drawing lots.
The group also decides when the paluwagan begins and ends. Typically, it runs up to 6 to 12 months only. For instance, a group of 12 officemates can agree to run a paluwagan for 6 months – enough time for each of the 12 members to receive money on one of the 12 pay days over the 6-month period. If each member agrees to pay $50 each collection day, each scheduled recipient will get a total of $600. By the end of the paluwagan, each member would have paid a total of $600, the same amount each member receives on her or his scheduled payout day.
What’s the gain? The savings are forced. Once you’re in, you commit. You wouldn’t dare to stain your reputation among your friends, neighbors or officemates. And if you’re among the firsts on the list, you’re getting an interest-free loan since you’re receiving money before completing your savings. Essentially, nobody holds the money for the group, since it’s immediately given to the recipient. Normally, the first on the list is usually chosen by the group, and not included in the drawing of lots. This chosen person will be in charge of collecting the money each pay day in exchange for getting the opportunity to be first on the list.
Oftentimes also, members exchange schedules to time their paluwagan paydays on dates they expect to pay big bills such as tuition fees.
Is there a similar scheme in your place? Is there another great feature we can incorporate in the scheme?
|
PLEASE VISIT THE CONTRIBUTOR'S WEBSITE
Working Pinoy
Tips for Pinoys in managing their finances
www.workingpinoy.com
|
|
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
This probably would be very interesting where I work since I am self employed. I will talk to myself later today and see if this is something I would like to do.
CONTRIBUTOR'S REPLY
Thanks for considering doing it. This really works as long as all the members agree to how it works and all are committed. Thanks for commenting.
This is one of the most awesome articles I've read this year. What a brilliant, elegant idea - something that works without any institution. Thank you for sharing this.
 |  | nick May 30, 2010 22:21 | |
CONTRIBUTOR'S REPLY
Wow, this is also one of the most inspiring comments I've ever received for all the articles I've written. You made my day. Thanks a lot. Credit also goes to the Qondio instructions, which I read before writing this. It said something about writing local, so I was forced to think of something positive that people in other places can think about.
The copyright for this content entitled "Paluwagan Savings Scheme" has been specified by the contributor as:
Creative Commons Attribution-Share Alike 3.0
Details 
This content may be copied, distributed, and modified, as long as a) the original author is acknowledged with a link back to the content page, and b) if the work is modified, the result is distributed with this same license.
If you use this content according to the license specified, you must link to the following URL:
http://novem88.qondio.com/
|
|
|
This intel was contributed by Novem
Novem
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
