Use your stokvel payout wisely



Stokvel have been in existence in Mzansi for many years. They have enabled some families to buy groceries during the festive season and have helped parents pay their children’s school fees in January.

Despite the obvious importance of stokvel money, people still get carried away when they have the money. They buy things they don’t really need, and forgetting that there are better ways to use their stokvel payout.


Emergencies are a part of life and part of saving money is to ensure that when such emergencies arise; one is able to act accordingly. Rustenburg-based independent financial advisor, Thabiso Motheo, says these emergencies often require money and ”without money put away in savings, you may be opening yourself up to risks you could have avoided if you had money saved”.

He says not having enough money to pay for emergency healthcare may force you into taking a loan that your savings might otherwise have covered without any issues. Thabiso adds that taking a portion of your stokvel payout every year and saving that money for rainy days can help in covering these emergencies.


“The cost for private and public education is increasing every year, and it’s getting more difficult to meet these demands,” Thabiso points out. He indicates that “investing some of the money from the stokvel payout.

for your children’s education can mean that they are able to go to university and further their studies. The financial decisions you make today will make a huge difference to your children’s future,” he says.


While saving is a wise thing to do, Thabiso says spoiling yourself a little with a small portion of the stokvel payout is not a crime. He says since the festive season is upon us, one can take some of the money and buy groceries for the family, lightening up the mood at home and ensuring that one puts a smile on the children’s faces.


Debt can cause you emotional strain, and Thabiso says with the stokvel payout allowing you to have extra cash than in other months, this could be a time to settle that debt. “Though the money might not be much, it can still help you settle that medical debt, personal loans, and that clothing account that has been causing you stress,” he says.


January is a tough month and people hardly ever have enough money. To ensure that you have enough money in January, Thabiso says you should be careful before you buy anything with the stokvel money. “Search for reduced prices for your festive season shopping and buy items that you need that have been marked down,” he says. “Comparing prices can mean that you have some of your stokvel payout money in the bank come the tough month of January.”

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