Ideas on spending ‘mokhatlo’ savings this festive season

The festive season is in full swing, an exciting time for members of mekhatlo to celebrate and reap the rewards of their labour. There are so many different savings clubs or mekhatlo in Lesotho, each helping its members achieve their respective financial goals. After twelve months of being disciplined and saving, I too would look forward to seeing the?financial goals?materialise - be it groceries, linen, travel, bags/shoes or investments.

Being an advocate for?holistic financial planning, I often encourage mekhatlo to graduate beyond just savings clubs, if they are to build wealth for themselves and their families. Though financial planning is important, I also advocate for people, especially members of mekhatlo to enjoy the rewards of their hard work, live in the moment and find a balance.

In this article, I share a few ideas that members of various mekhatlo can consider during this festive season and beyond.

·??????Celebrate the achievement

Saving towards financial goals is not easy, especially when the cost of living i.e., groceries, utilities and petrol is constantly increasing. Because mekhatlo are built on social interests and common goals, celebrating collectively and as individuals are key. I recommend that members spend time together to celebrate, reflect on what went well or did not and plan for 2023.

·??????Build investments for mekhatlo

A great avenue for mekhatlo to explore is investing, with the goal of building generational wealth. With the help of qualified professionals, the capital accumulated by mekhatlo can be used to invest in safe investment options that will benefit its members in the long term. Mekhatlo are growing and becoming investment consortiums, with investment interests in various industries such as manufacturing, energy, agriculture, retail and the hospitality industry.

·??????Start investments for your family

Mekhatlo can consider having a policy which helps its members manage their finances better, invest and use the contributions towards achieving their individual or family goals (paying school fees, buying house materials and buying a site). When members share the contributions and interest earned at the end of the year, for example, they can start investments as individuals or for their children.

Take Nthabiseng for example who receives LSL30 000. The first recommendation would be for Nthabiseng to plan how the money will be used and accounted for. After planning, she can consider paying herself first and investing some of the money e.g. LSL6 000 which is 20% of the amount. This investment can be in her name or any of her children (depending on the goal). By holding each other accountable, members can benefit from being part of the savings club and improve their lives holistically.

As we prepare for Christmas shopping and the festive season, let’s heed the advice of financial planners, coaches and advisers by paying ourselves first”. Take some of the money received, however big or small, invest it and start the new year on a healthy note.??