Saving has always been a challenge for me.
While I continuously applied the pay-yourself-first principle to my finances, I struggled to stick to my budget.
So when I wanted to start a cake-decorating business, I needed another way to cover my startup costs.
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I preferred not to take out a loan because of interest charges.
A co-worker suggested starting a sou-sou.
Whats that?youre wondering.
Well, read on.
Whats a Sou-Sou?
Asou-souis a simple savings plan.
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However, once each person receives their cash, they still have to contribute until everyone gets paid.
Sou-sous continue until everyone receives a payout at least once.
This helped me check that Id be able to get started once I received my payout.
It never hurts to ask!
It helped me save 20% of the original cost when I eventually bought everything.
To earn extra cash, I sold cakes at community events at a reduced price.
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A total of 10 colleagues joined the sou-sou, but you could start one with any number of people.
Ask co-workers, relatives and fellow church or gym members if they want in.
Two people had to be present when money was deposited or paid out.
Since we all earned monthly salaries, we decided on a deadline for everyone to pay up.
My supervisor was also in the sou-sou.
If the person collecting the cash isnt in on it, theyre sometimes paid a percentage by each member.
When their payout time came, each person received $500 a 50% payout.
For example, I chose anaccountability partnerwho would see to it I invested my $1,000 in my business.
How My Sou-Sou Worked Out
Our sou-sou began in January and I received my payout in May.
My choice to use a sou-sou rather than take out a loan paid off.
With the assistance of friends or family, saving money to start a businessispossible.
Kerry Mc Donald is a contributor to The Penny Hoarder.
Freelancer Kent McDill contributed to this report.
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