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Saving money is often easier said than done. Despite our best intentions, life’s expenses and unexpected costs can make it difficult to consistently set aside money. Many people struggle with the discipline required to save regularly, whether due to fluctuating incomes, sudden financial demands, or simply the temptation to spend. This is where Cirkly comes in.
Cirkly is a community-based savings platform that makes saving money both systematic and supportive. By leveraging a modern version of the traditional Rotating Savings and Credit Association (ROSCA) model, Cirkly helps individuals commit to regular saving with the encouragement of a group. In this blog, we’ll explore how you can save money with Cirkly and the numerous benefits it offers, making disciplined savings achievable for everyone.
Understanding the Cirkly Model
Cirkly is based on the traditional concept of a Rotating Savings and Credit Association (ROSCA), which is a savings scheme widely used around the world. The idea is simple yet effective: a group of individuals contributes a fixed amount of money into a common pool at regular intervals. Each cycle, one member of the group receives the total amount collected. This continues until everyone in the group has received their payout.
Cirkly modernizes this concept by providing a digital platform that makes it easy to join circles, contribute funds, and track payouts. The platform ensures transparency and trust among members, making it a reliable way to save money.
Joining a circle
To start saving with Cirkly, the first step is to join or form a circle. Each circle consists of a predetermined number of participants who agree on a fixed contribution amount and a regular contribution schedule, typically monthly. It’s important to choose a circle that fits your financial situation and savings goals. Consider factors like the number of participants and the contribution amount to ensure it’s manageable for you.
Regular contributions
One of the key aspects of saving with Cirkly is making regular contributions. This disciplined approach to saving ensures that you are consistently setting aside money each month. Cirkly makes this process easy with automated contributions and reminders, so you never miss a payment. Regular contributions not only help you save but also build a habit of disciplined financial management.
Receiving payouts
Every cycle, one member of the circle receives a lump sum payout, which is the total amount contributed by all members for that period. The order of payouts can be determined randomly or through a pre-agreed schedule. Receiving a lump sum can be incredibly useful for covering significant expenses, such as a down payment on a house, an emergency fund, or a large purchase. Knowing that you’ll receive a substantial amount at some point in the cycle can also provide peace of mind and financial security.
Benefits of using Cirkly
Guaranteed savings
One of the primary benefits of using Cirkly is the guarantee of disciplined savings. In a typical savings scenario, it can be easy to skip a month or dip into savings for unplanned expenses. However, with Cirkly, you commit to a regular contribution schedule as part of a group. This structure ensures that you consistently set aside money each month. By the end of the cycle, each member has saved a substantial amount, making it easier to reach your financial goals.
Access to lump sums
Throughout the cycle, members take turns receiving the total pooled contributions as a lump sum. This lump sum can be incredibly useful for handling significant expenses that would be challenging to cover with regular savings alone. Whether it’s making a down payment on a house or a car, paying for medical emergencies, saving for a vacation, or purchasing a major appliance, the lump sum provides the financial flexibility needed to manage high costs without resorting to loans or credit cards.
Community support
Saving within a community can be more motivating and supportive than saving alone. In a Cirkly circle, each member is part of a group with a shared goal of financial stability. The social aspect of the platform encourages regular contributions, as each member relies on the collective effort to receive their payout. This sense of mutual support and accountability can be a powerful motivator for individuals who find it challenging to maintain consistent savings habits on their own.
Transparency and trust
Cirkly places a strong emphasis on transparency and trust among its members. The platform provides clear records of all contributions and payouts, ensuring that every member is aware of the flow of money within the circle. This transparency helps build trust among participants, as everyone can see that the process is fair and that their contributions are being managed responsibly. Knowing that the system is transparent and reliable can give members peace of mind and confidence in their savings plan.
Financial inclusion
Cirkly is designed to be accessible to everyone, regardless of their financial situation. Traditional savings methods and financial products often require a certain level of income or credit history, which can exclude many individuals. Cirkly, however, allows people from diverse financial backgrounds to participate in a structured savings plan. By lowering the barriers to entry, Cirkly promotes financial inclusion and helps more people build a habit of saving.
Enhanced financial discipline
The structured nature of Cirkly’s savings plan promotes enhanced financial discipline. Members commit to a set schedule of contributions and payouts, which requires careful planning and budgeting. This disciplined approach to saving helps members develop better financial habits over time, such as setting aside money regularly, planning for future expenses, and managing their finances more effectively.
Flexible payout options
Cirkly offers flexibility in how the order of payouts is determined. Members can choose to decide the payout order randomly or agree on a pre-determined schedule based on their individual needs. This flexibility allows members to plan ahead for when they will receive their lump sum, making it easier to align the payout with specific financial goals or anticipated expenses.
Reduced reliance on credit
By providing access to lump sums of money within a trusted community, Cirkly can help reduce reliance on credit and high-interest loans. Members can use their payouts to cover significant expenses without needing to turn to credit cards or personal loans, which often come with high interest rates and fees. This can lead to better overall financial health and less debt accumulation.
Real-Life Example
Meet Linda and Adam. Linda had a tough year at work and she would like to go on vacation for 3 months during the summer, but with rising prices, her budget does not stretch far enough. Meanwhile, Adam has been dreaming of owning his first car, but he struggles to be committed to saving up. This is where Cirkly comes in, Linda and Adam joined Cirkly and have been matched with other eight users to fulfill their financial goals. Each member of the Circle contributes 200$ monthly. Every month, one member receives the total amount saved by the group – a whopping 2000$ – which they use to fulfill their financial goals. After just two months, it was Linda’s turn. She received 2000$ and could go on a well-deserved vacation. She came back more relaxed mentally and ready to work again. On the other hand, Adam waited his turn while being committed, after exactly nine months he received 2000$ and drove his first car, a dream come true.
In just ten months the Circle was concluded and every member reached their goals faster in a more committed, sustainable, and enjoyable way! The story isn’t just about Linda and Adam; it’s about thousands of people who struggle every year to reach their financial goals. This struggle impacts their well-being, sense of control, self-esteem, sense of inclusion, and mental health. Fortunately, Cirkly is here to help everyone achieve their goals and improve their lives.
Cirkly offers a unique and effective way to save money by leveraging the power of community and structured savings plans. By joining a circle, making regular contributions, and receiving lump sum payouts, you can achieve your financial goals and build a habit of disciplined saving. Start your savings journey with Cirkly today and experience the benefits of community-based savings.
Ready to start saving with Cirkly? Visit our website to join a circle today. For more tips on saving and personal finance, check out our other blog posts.
