In every step of life, we do need money. Some expenditures can be estimated beforehand, the other can come on unexpectedly. Whilst the need of money is so certain, the income doesn’t seem that certain. Then it’s a logical consequence that we’d better prepare ourselves either by saving, or investing if you have a bigger amount of money. So let’s start from the easier one first, which is saving.
In modern life, popular partner in saving money is the bank. A lot of convenience offered such as ATM and online banking. You can simply make an account and start trusting the bank to keep your money save. Wait… keeping it save? Well, okay. Every month you will receive a little amount of interest but don’t be too happy. At the same time the bank will also take “their share” of your money as admin fee and government’s share which is more popular as tax.
Sadly, when having not so much amount of money saved in the bank, the interest we get is less than the admin fee and tax. Pointless? 😛
Let me introduce you to:
Mr. Raiffeisen who invented Credit Union! Friedrich Wilhelm Reiffeisen was born in Germany. Yay, Deutschland!
He then became the major of Flammersfeld. Seen from the his picture, perhaps you think he looks a bit grumpy, but believe me, he was a real problem solver. The main reason for him to invent credit union system was the poverty of his people. Brilliant!
Credit Union is a microfinance solution to help ourselves and other members. In a Credit Union, members with low financial ability is well appreciated. Members can save money on a daily basis in a small amount each time, which could be laughed at in a bank. Of course, there is also monthly fee as a contribution to strengthen the community: the Credit Union. But, customer will get back the fees paid once they resign from Credit Union membership. And the good news is, members get some amount of interest on monthly basis. The percentage of interest is based on the result of members’ annual meeting.
In a Credit Union, we also can borrow. The purpose can be for consumption or for further saving. I bet everyone has already heard about first one. But the second one is even more interesting. It is unique because when member of credit union borrows money for the purpose of saving, it is directly credited to the member’s account. Which means member doesn’t accept the money in a physical form. Then, member has to pay the installment based on the scheme approved at the beginning. While member pays this installment, the full amount of money borrowed gets monthly interest. This is absolutely helping and fostering discipline within members.
Moreover, Credit Union regularly holds useful training, such as entrepreneurship and financial literacy. It makes Credit Union more like a community, where members unite, learn together to get financially better. This, I think, is totally suitable for Indonesians. 😛
The thing is, it is important to start saving, regardless of your financial ability. And I don’t recommend saving all of your money by yourself because, come ooon, who doesn’t like cute dresses on display or brand new gadgets? We need some help from other parties, a little bit of pressure. So that we can successfully save the money, not just earn it, keep it for a moment, but then in two weeks let it pass through us to the merchants. LOL!
Come on guys, start saving, in case the worst is yet to come! 😉