a peculiar cultural tradition

[big_strong_man]

My aunt asked me recently to join this common Somali cultural activity. In entails pooling money, and every month (or whatever interval of time) giving that money to one of the members who contributes money.

My mother is also a member of this system and asked me to join.

I thought about it for a second and realized that you'd be better off just keeping your own damn money in the bank.

Why do Somalis do this? I asked my mother and aunt and they both said that they just can't control themselves and keep money in the bank, so it's a way to force themselves to safe, I guess.

[Navy9]

This system is used by many societies.

[big_strong_man]

Perhaps. But why not just keep your money?

[siren]

Because you might need the money right away, it is better than getting loan from a bank or maxing out your credit card...

[LionHeart-112]

It's called "Ayuuto" and it's nothing new. I had been asked to join such activity several times but had to decline because of horrible thoughts about wanting to escape with the money after my turn. lol.

[big_strong_man]

Because you might need the money right away, it is better than getting loan from a bank or maxing out your credit card...

But you won't need to go to the bank if you save your own money.

[big_strong_man]

It's called "Ayuuto" and it's nothing new. I had been asked to join such activity several times but had to decline because of horrible thoughts about wanting to escape with the money after my turn. lol.

I think people only enter into it with other people they trust. Still, it could get messy...

[LionHeart-112]

big strong man...It's good idea because you will have a large sum of money for the times you need to make a big purchase and a great way to save big sum. Because of the small amount you contribute (most people usually contribute $100 or $200), you won't feel as though you are giving up a lot and payoff is much better.

[big_strong_man]

big strong man...It's good idea because you will have a large sum of money for the times you need to make a big purchase and a great way to save big sum. Because of the small amount you contribute (most people usually contribute $100 or $200), you won't feel as though you are giving up a lot and payoff is much better.

But you can create great a big sum of money yourself by...saving your own money.

Save your own money. You case use it to make a big purchase.

Save your own money. You can use it to for any occasion.

The whole thing is a game Somalis play. It doesn't make sense.

[LionHeart-112]

True but this system is used by those who don't have enough savings or don't make a lot of money. Not every1 can save a large portion of their paycheck. Like all inventions, it's out necessity.

[big_strong_man]

True but this system is used by those who don't have enough savings or don't make a lot of money. Not every1 can save a large portion of their paycheck. Like all inventions, it's out necessity.

There is no gain or loss in this system so long as every one pays once and receives money once every cycle. No money is created through this system. It's just shuffled from place to place. Why is it out of necessity when, in the end, everyone could have been just as well off by keeping their own money?

You can create a similar system for yourself. See, every week or month put away X amount of money and retrieve it only when it has grown to an amount you deem fit. There's no need to involve other people.

The only defense of this stupid system amounts to "Somalis don't have the self-control to save their money."

[LionHeart-112]

Holy shit, man! Why is this so hard for you to grasp? lol..It's not an interest earning bank account.. It's a system used by people with tight cash-flow who are preparing for a trip or anticipating a big expense! For example, i have met people who entered Ayuuto to buy a ticket to Hajj. All peoples are bad with saving money, not just Somalis. It's hard to have money sitting aside when you have a family to raise or in debt. You don't gain or lose anything from participating in this type of program. The whole point is to have a large sum of money, that would normally take months to save, at once. You get your big payday and continuing the program won't break the bank. It's not a long-term savings or financial plan.

[big_strong_man]

Holy shit, man! Why is this so hard for you to grasp? lol..It's not an interest earning bank account.. It's a system used by people with tight cash-flow who are preparing for a trip or anticipating a big expense! For example, i have met people who entered Ayuuto to buy a ticket to Hajj. All peoples are bad with saving money, not just Somalis. It's hard to have money sitting aside when you have a family to raise or in debt. You don't gain or lose anything from participating in this type of program. The whole point is to have a large sum of money, that would normally take months to save, at once. You get your big payday and continuing the program won't break the bank. It's not a long-term savings or financial plan.

The thing is, you are in effect saving money when you involve yourself in this program.

The person who entered Ayuuto to buy a ticket to Hajj could have saved that money himself in increments. There is no need to involve other people, unless you are borrowing from them in the traditional sense. Ayuuto is nothing but an endless cycle of borrowing and returning, borrowing and returning.

What you are in effect saying is that Somalis don't have the self-control to save money normally so they must lock themselves into a system that forces them to save.

It's a totally pointless system if you have access to a bank account and a little bit of self-control.

[LionHeart-112]

Hmm..let's see..A hypotethical person wants to make Hajj. Avergae hajj package costs about $3000 (flight, room, food, etc) They can only save $200 a month and Hajj is 5 months away. That's $1000 they can save in increments. So they enter into Ayuuto with 5 people and they each contribute $200 a month. $200 x 5 people x 5 months.....

^^^^bad example

Assumed the pay out was once every 5 months, not monthly...

[big_strong_man]

Hmm..let's see..A hypotethical person wants to make Hajj. Avergae hajj package costs about $3000 (flight, room, food, etc) They can only save $200 a month and Hajj is 5 months away. That's $1000 they can save in increments. So they enter into Ayuuto with 5 people and they each contribute $200 a month. $200 x 5 people x 5 months=$5000

You're math is wrong. He will only get $1000, and from that $1000 he has to pay the people back if his turn is not the 5th (since he's making that trip on the 5th month) and by the 6th it would have been too late.

Suppose his turn is the 5th

On months one through 4 he pays $200. He's down $800. On month five, they all pay him $1000. And when he pays $200 on the 6th month, he will be "even." He has taken a thousand and paid a thousand. He might as well have saved up that money himself.

You make it sound like the Ayuto will be going to the SAME person for five months. Lol. I don't think that's how it works.