Women Investment Clubs

Financial experts always advise on the importance of investing 20% of one’s gross income.

Women worldwide are risk takers in so far as securing their financial status is concerned. This has resulted in most women making wrong financial decisions that have cost them their marriages, families, and even long term financial security.

There is however a brighter side when it comes to women and investments. Women particularly those in the middle-income bracket have utilized women groups or clubs to invest in market shares, property or real estate and diverse development projects.

Most of these groups are initiated by women as friends to offer support to each other. With time these groupings evolve into investment clubs. These clubs are known by different terms, these include, “merry-go rounds”, “chamas”, “women’s group project”, and so on.

In the developing world, these clubs have played a key role in boosting the economic standing of many women and their families.

One may then ask, “how do these informal investment clubs work?” 

  • At the onset, most of these clubs are initiated off by people contributing less that $1 a day or $3 per week. These monies are then collated and each member is given a certain percentage per month on a rotational basis.
  • The rest of the monthly contribution is then deposited in a bank. Members with time are able to use these savings to buy land or property. These assets are then either apportioned to members or rented out as an income generating scheme.
  • Some of these clubs start off on a welfare basis, whereby member’s contributions are only used when one of them gives birth or loses a very close relative.

In short, at the onset most of these clubs never have formal operational structures. They informally nominate someone who handles their finances.

However, there has been a shift from this modus operandi in most women clubs. This is so because; most of the clubs in the recent past have engaged lawyers to draft for them a governing constitution. These constitutions mostly address the following:

· Membership requirements

· Registration fees

· Monthly contribution

· Penalty for late payments

· How the monies will the used

· Membership withdrawal conditions

A constitution is also a prerequisite when the women want to have their club registered as an investment club or company.

It is therefore advisable for women to join such groups as way of boosting their economic standing. The good thing is that one can join more than one group at any given time.

Leave a Reply

Your email address will not be published. Required fields are marked *