A few days ago I joined a savings circle. People (friends in most cases) form a group which saves money an lends it to one of the group members. Our group is made up of 6 members - [and still open to those who want to join]
Every month, each member contributes UGX 50,000 (roughly US $24). So, a total of USD144 is collected from the 6 group members every month. [ 6 time 24 = $144.] The money is then given to the first group beneficiary (money is given to the group members in turns). The Beneficiary chooses what they want to do with the money -maybe invest in a small business or take care of their immediate needs.
The money is like a loan even though its literally not. This teachers the group members how to save money as the circle rotates.
This idea would fit perfectly well in my previous blog post - such that the farmers can borrow part of the money from the Cooperative to improve their farms. Read more about it here "Grow the Money - Lend it - Harvest it!!
" I determined a more sustainable money circle for my small community. I tailored it for the community so, as I implement it I will have to contact the community to see how best it can be implemented. I can see a lot of barter trade and foreign exchange on top of the cash.
Lets take a quick look at Foreign:
This is a picture of the different currencies that I have in my wallet.
Whats funny is that UGX 1,000 is an equivalent of US $0.50.
So this is what I have in my wallet:
R100 [South African Rands]
US$1 [US Dollar]
KSH100 [Kenyan Shillings]
UGX1000 [Uganda Shillings]
I am keeping that money so I create my own money map!! I have to create currencies from as many countries as I can to do this. :)