Personal Finance: If banks are not meeting your needs, start own piggy bank

You have been wondering where to deposit those 10, 50 and 100 coins not until you get ‘big’ money the bank needs.

You have been wondering where to deposit those 10, 50 and 100 coins not until you get ‘big’ money the bank needs. Then don’t look further than starting your own piggy bank that will give you freedom to save, respect your money and help you make profits from your own savings. 

Your ‘bank’ would not need huge investments, big buildings, many employees and those many customers to deposit their money. The only thing  you need are those little coins saved from transport, a kilo of salt, balances from groceries and many others  to set up your banks deposits and your willingness to operate your own bank. These are steps on how to set up and manage your bank.

Like any other bank, get the infrastructure to handle your deposits- those little coins.

 This may take you a box properly sealed [also called piggy or penny bank] placed in a secure place in your house, with a small hole that will allow you to deposit but not withdraw at any time-this will now act as your safe.

After this, think of how to increase your deposits-expanding your deposits, cutting from costs and ensuring that money not spent as scheduled are deposited in your micro bank and this will require you to have small entry book to indicate each source of the money deposited. You can use your own simple language; say- money saved as a result of not being used can be indicated in your book as cash-not-used, savings from groceries as G-savings and so on.

Another step would be for you to make sure that your savings which we expect to be growing to start earning profits- like banks do charging fees on your deposits charge every deposit a small fee and indicate as savings-fee. Also charge on everything you use in your house a fee, it should not necessarily be much money; 5 cents for example could work.

Imagine if you start charging a fee on every time you visit your toilet, go for shower, use that flat iron, and all that goes to your micro bank savings. These fees would then be used as loans which would increase your profits. Start by loaning to yourself, set an interest rate and whenever you use the money from fees and the deposits charge yourself an interest. Deposit some coins in those small shops in your place. You can also use money to buy simple items like airtime from friends, say- a friend would be in need of money so he would give you airtime of Rfw550 francs and you pay Rwf500. If you become sincere, then expect your bank to grow in terms of profits. When deposits in your micro bank grow you will need a bank to keep your money, now that you have big money they need. Remember that freedom in your financial life is a lifetime freedom, so better be your own liberator.


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