In this post, we will try to explain why every teacher should at least be part of a SACCO. Sacco’s are Savings and Credit Cooperatives in full, and you can simply understand them as the kind of organizations that encourage savings and provide loans to their members, depending on;
Their savings
Their amount of shares
Duration of their membership
Their guarantors.
In this era where banks have tightened requirements to acquire loans and the interest rates are high, it is almost obvious that people will look at the Sacco’s as their financial redemption.
At the beginning of every year, the majority of us make financial resolutions, among other resolutions, and we assume that if the year went as planned, we would stick to the plan and execute all our goals before the end of the first half.
Gusii Mwalimu Sacco Society. (Photo/Courtesy)
However, things don’t usually turn out as we expect them to, and the one thing that we always have to do is to prepare ourselves for the coming of such disasters so that we can deal with them effectively.
Why Should Every Teacher be Part of a SACCO?
Now, if you have been a little skeptical and/or are having second thoughts on whether you should or shouldn’t join a Sacco, here are the profound benefits.
1. Savings.
During this period, it’s really hard to get at least a tenth of your income and save it in a piggybank or on your bank account.
As such, you must have some kind of authority that will force you (make you feel the need) to save as insurance for your own future.
There are different types of Sacco’s and you can always choose the one that works for you.
•DT SACCOs
DT actually stands for Deposit-Taking, so these are Deposit Taking Saccos.
In these Sacco’s, the members ought to deposit their money and are free to withdraw whenever it feels right for them to do so.
Cash rounds are the common examples of such Sacco’s, where the money each member brings is equal, and it’s one member that withdraws every round that money is collected, and the money they withdraw is equivalent to the amount collected in total.
Non-DT Saccos.
In these Sacco’s, deposits are not taken by the members but are used as collateral security for every member that wants to take a loan from the Sacco.
On dissolution, or when a member wants to leave, they have the right to claim all their deposits.
This is the commonest type of Sacco because it is easily manageable and it’s not limited to members in the same vicinity or place of work.
Given both types of Sacco’s, you stand at a higher ground as far as saving is concerned, because either way, you get all your saved money back in one piece.
2. Access to loans.
Now, we have seen with both the DT and Non-DT Sacco’s that you can easily save.
However, we all know how hard it is to start or maintain a business without a little loan somewhere. This is why a great number of people risk losing the assets they worked so hard to achieve as collateral security.
With a teacher’s Sacco, you shall have saved up enough money to work as your collateral security.
One other bit I love about Sacco’s is you can always increase the amount of money you borrow when you pay your loan in time.
3. Don’t have to downgrade your lifestyle.
Now, if there’s something else I like about Sacco’s, it is the fact that you can maintain your lifestyle, and if anything, you don’t have to be overly frugal with your money.
When you take a loan from a Sacco, you have to pay back in small installments, which are generally convenient, and to tell you the truth, you shall have enough to keep your business running, and you are still entitled to your lifestyle.
4. Less risk and pressure compared to the banks.
Members back up.
Now, I’ve seen a couple of women get loans from Sacco’s after they have been backed up by all the members in their group.
Kitui Teachers Sacco. (Photo/Courtesy)
This means all her group colleagues shall be accountable in case payment fails.
Of course, this condition has a bunch of ups and downs, but all factors constant, it’s a good thing, especially if you were faced with disaster as you were left with just a few pennies to get the loan fully paid.
No compound arrears.
If you have taken a loan from a bank before, you probably know what I’m talking about; you take a loan, spend time without giving the regular payment and you find that the amount you owe has significantly increased.
Now, that’s the beauty of Sacco’s, because according to what I’ve seen so far, the debt does not multiply, except phone calls now and then, reminding you of your responsibility (which is the right thing)
5. Helps your business life.
I bet this is one thing that you are certain of. Right?
Starting up a business.
First off, this entirely depends on the kind of Sacco that you subscribed to in the first place.
Mwalimu National Sacco (Photo/Courtesy)
If a cash round is what you subscribed to, then it absolutely is in your favor, to use the money you have saved to start up a business of your choice, especially if that is a small business.
Also, some people join Sacco’s simply to save up enough so they can dissolve their membership with enough money to start up with.
Again, that’s a good idea, except that I don’t support the dissolution part, because you would still need your membership there.
Developing your business.
If you join the Sacco after you have started your business and kept it standing for a while now, that is a great move.
With these fewer pressure loans, you can develop your business by adding a little more capital and other things.
I can tell you with certainty that if you can do the math, you can develop your business with the loans.
6. Financial intelligence.
Now, you are in this kind of thing where you have an absolute opportunity to harness financial tips that you will learn from the other members of the SACCO.
Also, here is the chance that you will learn how to wisely invest because it is hard and hectic to pay back for the money you haven’t used or profited from.
7. Connections and networking.
I always love to talk about networking as far as making money and ensuring your financial stability is concerned.
In Sacco’s, you shall meet and make friends and acquaintances with people that do the same job as you, and others that work in different fields.
With good cooperation and unity with these people, you stand a great chance of winning new friends that can potentially take you to another level as far as business is concerned.
Before looking at the core reasons why every teacher should join a Sacco, here is the list for some of the Teachers’ SACCO in Kenya and Uganda.
List of Teachers SACCO in Kenya
The following are some of the Teachers’ Saccos found in Kenya.
Mwalimu National Sacco Society Ltd
Metropolitan National Sacco Society Ltd
Kitui Teachers Sacco Society Ltd
Nakuru Teachers Sacco Society (Cosmopolitan Sacco Society)
Mentor Society Sacco Ltd-18,000 Members
Bondo Teachers College
Imarisha Sacco Society Limited
Kilifi Teachers Sacco Society Ltd
Narok Teachers Sacco Society Ltd
Rachuonyo Teachers Sacco Society Ltd
Wareng Teachers Sacco Society Ltd
New Fortis Savings And Credit Co-Operative Society
Mwingi Teachers Sacco Society Ltd
Gusii Mwalimu Sacco Society Ltd
Elgon Teachers Sacco Society Ltd
Marsabit Teachers Sacco Society Ltd
Lamu Teachers Sacco Society Ltd
Kwale Teachers Sacco Society Ltd
List of Teachers SACCO in Uganda
The following are some of the Teachers’ Saccos found in Uganda.
Walimu Saccos Union Uganda. (Photo/Courtesy)
WALIMU Cooperative Credit and Saving Society
Hoima municipality teachers Sacco
Olio Walimu Sacco
Uganda Teacher’s Cooperative Savings and Credit Union
Tororo municipal teachers
Greater chesower teachers SACCO
Budadiri primary teachers Sacco
Bukooma teachers Sacco
Nasuti secondary teachers Sacco
Busia Walimu teachers Sacco
Iganga municipality council
Moroto high teachers Sacco
UNATU – Kampala
Budduda teachers’ Sacco
Katakwi district teachers Sacco
Kasubi army primary Sacco
Madera Walimu Sacco
Pangisa Sacco
Ntungamo municipality teachers Sacco
Mubende mityana teachers Sacco
Lira Urban teachers Sacco
Mayuge town council Sacco
Amuria teachers at work
Kaberamaido teachers Sacco
CONCLUSION;
Honestly, there is a lot of beauty in joining Sacco’s, and I guarantee you that whatever lacks in the banks and among the money lenders is sure to be found in the Saccos.
Transparency;
I was once skeptical about joining Sacco’s because I thought I was looking at a group of disorganized individuals who entrusted a few seemingly successful others, who would later run with their money.
No doubt, such cases have been heard of a few years back, so you have to check whether the Sacco you’re about to join is registered, and get to know all the leaders if possible.
It is okay to be careful because it is your money after all.