AKAWO SAVINGS

Although there are many ways in which one can save money, but I will like to discuss about one method that has over the years proved very much effective. This is not just for me but to also various small businesses here in Nigeria and that is Akawo savings.

Akawo savings is a system of daily savings operated by not just individuals, but also by organizations like micro finance banks etc. In Akawo savings, first of all it is important that you trust whomever you are entrusting your daily savings with. It is important you put your savings in the hands of credible organizations rather than individuals.

                                                       How it works

1.   You are expected to register with an individual or an organization running an Akawo business usually with a sum of 100 Naira.

2.     You are then given a form by them to fill.

3.   You fill in your details and also attach a passport photograph to the form and return it back to them.

4.    You are then given a card which will be yours for the entire duration of the year or more than in some cases.

5.   You are then asked how much you can be contributing to it on a daily basis. The minimum is usually 100 Naira.

6.      In a case, where you agreed to be contributing 100 Naira. You are therefore expected to be paying this sum on a daily basis throughout the year.

7.     At the end of the year, you can decide to collect back your savings or to still leave it with them.

N.B the owners of the Akawo business take your contribution fee for a day in a month. So in the foregoing case they make 1,200 Naira from you in a year.

This form of savings is particularly useful for both those who are not frugal in their spending and for those who always have money to spare.