Savings clubs are popular in communities that may not wish to rely on traditional banks. They prove the power of a group in saving money for a goal. To do it, you need a savings goal, a group of friends who want to save the same amount, and someone who’s willing to manage the finances of the group for the duration.
Say you and ten friends each want to save $1,000 over the course of the next ten months. Each month, you each contribute $100. On the same day you meet to turn in your $100 each, one of you takes home the full $1,000 pot.
Then next month, that person continues to contribute their $100, while someone else takes home $1,000. The “winner” rotates until everyone has taken home the full $1,000 that they’ve contributed over the course of the ten months, although some people will get their money early (which acts almost like an interest-free loan) and some people will get their money closer to the end of the cycle.
If you identify a group of people who want to participate, consider starting with a smaller goal so the stakes are lower. Once you complete a cycle, you can increase the amount you all save together.