How To Start A Rotating Savings Club: A Step-By-Step Guide

Rotating savings clubs are a great way to save money without the hassle of setting up a savings account or joining a formal family savings club. Not only do they help you save, but they build wealth for your friends and family, too.
Whether ROSCA committees are part of your cultural heritage, or you want an easy way to save for something important, starting a ROSCA is a great idea. Here are 10 steps to setting up your own rotating savings club.
1. Learn how a ROSCA works
The concept of a savings club is simple: each person contributes a set amount of money each month. At the end of the month, one person receives the total amount in the group pot, known as a payout. This process is repeated until every person has received a payout.
Find out everything you need to know about how rotating savings clubs work.
2. Buy a notebook (or download a ROSCA app)
The committee notebook is a must-have for any ROSCA organiser. This is where you’ll record who has paid in each month, and who has received their payout. If there are a lot of contributors in your club, and you’re dealing in cash, the notebook will help you keep track of all your ROSCA contributions.
If you want to make the process easier, you can also use a ROSCA app to manage your savings club. It means you won’t need to collect or carry cash, and all the information is automatically saved on your smartphone.
3. Invite your committee members
Decide who you’ll invite to be part of your committee. Many people choose to invite work colleagues, friends from church or mosque, family members, or neighbours. Your group can be as large or small as you like, but there’s a lot more to manage with large clubs, especially if you’re collecting cash rather than transferring it online.
4. Work out how much money each member should contribute
In most savings clubs, each member contributes the same amount. This makes it easy for the organiser to manage contributions and payouts. This can be as much as you like, but usually each member contributes between £50-£500 per month.
It can help to know what most people are saving for. For example, if they want to make large purchases like a house or a car, you may want to increase the contribution size. For everyday savings, a smaller contribution may be more appropriate.
Be mindful that different group members will have different financial circumstances, so try to strike a balance between affordability and making substantial savings.
5. Calculate the payout
When you know how many committee members you have and how much they’ll contribute each month, you can calculate the monthly payout. For example:
5 members x £100 contribution = £500 payout
One committee member will receive this amount each month until everyone has been paid.
6. Decide in which order your committee members will receive the payout
Different groups decide on payout order in different ways. You can assign the payout randomly, or decide on the order based on the financial needs of your members.
Make sure each committee member knows when they’ll receive their payout. If you use a ROSCA app, it’s easy to send messages to the group, thanks to built-in integrations.
7. Set clear expectations
Organising a ROSCA can be stressful. You’ll need to deal with late contributions, collect cash from all over town, and make sure payouts go out on time.
Ask your committee members to stick to a clear payment schedule so each member can receive their payout on time. The easiest way to do this is to set up a recurring payment in a dedicated savings club app, or create a standing order in your bank account.
8. Collect contributions
With your ROSCA set up, it’s time to collect your first contributions. If you’re using a ROSCA app, everyone can transfer their money via the secure app. If not, you’ll need to share your bank details with your committee members, or arrange a time and place to collect the cash.
9. Organise the first payout
When you’ve collected the first round of contributions, it’s time for the first payout. In many clubs, the organiser gets the first payout as a way to say thank you for setting up the ROSCA.
10. Repeat the process
Now it’s just a matter of repeating steps 8 and 9 until each committee member has received their payout. At the end, you can decide whether to restart the ROSCA.
Technology to help you manage your savings committee
It takes a lot of work to set up and maintain your ROSCA, so anything that makes the job easier is welcome.
Bloom is designed to do just that. With our ROSCA app, you can set up a Bloom Circle and invite your committee members, so they can manage their contributions easily through the app. You can also control payouts and send information to your group members via the app.
Scroll to pre-register for the Bloom app and get immediate access as soon as the app is launched.