It’s that season where most stokvels are coming to an end and they are distributing their shares (for those running on a yearly basis). With that in mind, most people are planning their financial goals for 2020 and stokvels are something that is considered and popular as a form of encouraging people to save. So, I thought it was filling to share my review around this time so you can get the book for yourself or as a gift for someone.
Disclaimer: Stokvels was kindly gifted to me by Penguin Random House SA in exchange for an honest review.
The South African economy has a secret weapon: stokvels. At present, around R44 billion is saved annually by 11.4 million South Africans in 820 000 stokvels. But how can you harness this collective power to achieve your savings goals? This book simply and clearly explains basic financial principles and how to make sound financial decisions, and contains all the necessary information you need about stokvels, including how stokvels emerged and how they have evolved; how to set up a stokvel, and the admin, challenges and benefits involved in running one; the opportunities stokvels provide and how financial institutions, retailers, corporates and businesses that deal with them can leverage their purchasing power; and the future landscape of stokvels. Whether you’re looking to fund your monthly groceries or have set your sights on buying property, joining a stokvel can help you achieve your goal quickly, without having to borrow money from the bank. Appealing to readers who are already in a stokvel, those who want to be in one, and even those who never thought of joining one, this book explains how to use the power of a collective to save for a goal, make money on investments, and, ultimately, achieve financial security.
When I saw this book, I immediately knew that it would be something I need to read in order to broaden my knowledge on stokvels. Stokvels might seem as an old fashioned way of saving money but it is so amazing how they’ve been adapted to modern times with different twists i.e. property stokvels etc. In this book, Palesa explains the different types of stokvels, the impact of stokvels and she shares some examples.
With the examples provided, it is much easier to understand how certain things work and understanding it in the context of South Africa. Reading international finance books can help but they won’t go to the point of mentioning how things might operate in different countries. That was a plus for me because these examples are things I’m familiar with making it easier to grasp the point being communicated.
With the understanding of different stokvels, she also addresses how one can start a stokvel. When you deal with a group of people there is so level of accountability that needs to be employed especially when it comes to money so that we don’t get scammed. A stokvel constitution template is shared and detailed examples on how to run a stokvel properly. With that I am ready to start my own stokvel lol.
I cannot recommend this book enough, even if you are not planning to join any stokvel but you’ll learn a lot from this book. It’s an easy read, easy to grasp and very quick. Get yourself a copy and lets take a step towards meeting our financial goals.
About the Author
Palesa Lengolo is a finance professional with ten years experience in the financial services sector, in accounting, investment and banking areas. She founded Palengo Holding with the hope to change people’s financial lives for the better and her interest in different businesses is why she wanted to invest in those that resonate with her. She’s an investor at heart and says her mantra is : “An investment in knowledge pays the best interest”- Benjamin Franklin.
Have you read it? Will you be adding this to your list? Leave us a comment in the comments section below.