Paluwagan

[Jamesey]

My wife explained it to me a while ago.

But I just don't get it. Why bother going into an arrangement with a group of people? If you know them, the risks may be low, but still higher than opening a savings account with a bank.

[lastlid]

My wife explained it to me a while ago.

But I just don't get it. Why bother going into an arrangement with a group of people? If you know them, the risks may be low, but still higher than opening a savings account with a bank.

In the document in the link it suggests that it forces you to save.........the wife says it only works if you know the others in the "club" well or you are all relatives....

[raynaputi]

My wife explained it to me a while ago.

But I just don't get it. Why bother going into an arrangement with a group of people? If you know them, the risks may be low, but still higher than opening a savings account with a bank.

Lots of people in the Philippines doesn't have bank accounts..and this paluwagan forces everyone to regularly give money for their "money pot" which would eventually give them a big amount in the end. I have a bank account in the Philippines and honestly I can't put money in it regularly because I'm not obliged to..but with paluwagan, someone would constantly collect money and it's a requirement that you give the amount..hahaha..well just join in that club if you know all the members though..I used to do it with my teammates at work and group of friends in college..works fine for me coz it did help me save..