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An Excellent Tip on Saving Money
When You Have No Credit or Bad Credit
For those of you who would like to know how to save money for a minor of even a major project, when you are not eligible for a bank loan due to bad credit or no credit, in this hub, I will be sharing with you, one easy way to do so. Currently, with all these huge financial burdens that have been placed on the average American due to job loss, wage cuts, price increases and so on, there is a need for more saving, budgeting, cut-backs and creativity.
Life is unpredictable, so emergencies will show up in life on occasion, even In tough times, when money is definitely hard to come by; so from time to time, we all could benefit from a few ideas on how to quickly save a couple of dollars for emergencies.( Your car may need repair, you may need to get plumbing work done, and so on).
A lot of you will be surprise to know that most people in the Caribbean and African's countries, rely on this same method I am about to share with you, to build their homes or start a business. Because most of these people are not eligible for a bank loan, and even if they could get one, there might not even be a bank in that village or town, or a bank with sufficient money to lend everyone who needs a loan, they often have to rely on this money generating system.
This idea I am about to share with you, some of you might be well aware of it. However, for those who don't, here is an opportunity to quickly secure a small emergency fund without ever having to set foot in the bank. This method I am about to present you with, some people call 'Sus', 'Partner' etc,- It depends on the country where your'e from. In Jamaica, for example, it's called 'Partner'.
Here is how this particular saving method works : Say you need a couple hundred dollars to start building a house, for an emergency, or even to buy some household items, to make a small down payment on an item, to repair your car, etc. Providing you have a job and are taking home a weekly or bi-weekly salary, your problem can be easily solved.
This is what you need to do: talk to your co-workers. For example, say there are 20 people or more working at your place of employment. Ask some of your co-workers how do they feel about joining a saving club. Suggest to them that you all should put aside say $50 per week.
If 10 people agree, for the first week the amount collected would be $500. This amount would be given to person number 1. The second week's amount of $500 would be given to person number 2. Since there are 10 persons in this saving group, at the end of 10 weeks, person number 10 would be the last and final person to collect his/her sum of $500. You all can decide among yourselves who will be first, second, third in line etc. This can be repeated again , until you meet your goal. In fact, if you can afford more than $50 wkly, you can choose to have two accounts or what is refer to as two 'hands' in this saving club.
Of course, you need one responsible person to be in charge of doing the collection and distribution of the cash (a banker). This method of quickly generating some cash can then be repeated several times for the year. In fact, this is something that can be done within your own home and also among family members and friends.
The bottom line is, not everyone can quickly come up with the amount of cash he/she may need to take care of an emergency or purchase some of the things that they might need immediately. Also, to secure a loan, especially in tough times is not that easy; the bank may require more than the ordinary from you as collateral, or your credit might not be in top shape. However, if you have a source of income you don't have to ever set foot in a bank.
No doubt, there are numerous tips available out there on how to save money fast, however, Saving Club/ partnering/sus, is definitely one good way to save money fast. Another good thing about this unique method of securing some emergency funds quickly, is that you don't have to pay any interest on the money you receive. Just be considerate of others in the club and repay your money on time each week so that everyone can enjoy the benefit of this painless form of saving on time.