With the second-hand post, you won`t have access to it until you queue up for the money afterwards, as opposed to your savings, which you have access to and will always be immersed in without discipline. «Pooling» – Unlike banks or mutual funds, where you can break your investment at will (subject to termination clauses and conditions), it is very unusual for people to opt out of the Ajo cycle. Second, monthly contributions are usually set at a higher percentile of the average group member`s abilities. This means that members may not be willing to put such amounts into a bank account or mutual fund, especially if they have personal needs, probably not so large. It also helps shape financial responsibility and behavior. 2.7.6. Any reference in this Agreement to this Agreement or any other agreement or document shall be construed as a reference to this Agreement or (as the case may be) to any other agreement or document, as amended, amended, revised or supplemented from time to time; A coordinator is usually chosen from among the contributors, who manages the contributions and hands the money to the next one in line. The way Ajo works is that a group of people get together to put an agreed amount of money into the savings each month, and then at the end of each month, someone in the group takes all the money saved for that month, which is then alternated between all the members of the group during the monthly contribution period. For example, if there are twelve people in a monetary contribution group and they put a hundred thousand into it every month, each person would be entitled to a huge sum of 1.2 million naira at the end of each month. My friend mentioned that the system withholds the member`s interest income, especially if the member is not among the first people to collect the contribution. The comment on interest income is not entirely wrong, but it is very misleading. If you have a project that you want to tackle, or a significant expense that you have had in mind for years, you should consider a frugality contribution.
The thrifty contribution teaches financial discipline. If you systematically take a fraction of your income and invest it in a savings program, it means you have financial discipline. 3.1. These Terms and Conditions govern all access to the services provided by LAO. The application of these terms and conditions may only be modified by LAO in a subsequent agreement entered into and signed by both parties. 2.1. In this Agreement, unless the context otherwise indicates — Unlike savings, where the bank must remove certain fees on your money, there are no fees with a frugality contribution. At the end of the rotation, you can cancel the message or start over.