When Saving Isn’t Enough
Every December, someone proudly collects ₦120,000 from their ajo group. They contributed ₦10,000 every month all year and now, it’s payout time. It feels like a win. No bank stress, no app glitches, just discipline and consistency.
But here’s the uncomfortable truth: that ₦120k is just your money. No interest. No returns. No growth. In a time when inflation is eating into everything, you spent 12 months giving your money to someone else to hold… and got the exact same value back.
Of course, ajo and cooperatives have their place, especially the rotating ones where people get a lump sum earlier than they contributed. That structure can be helpful in paying rent, settling fees, and starting a hustle. And for people who struggle with self-discipline, joining a group is often better than saving alone.
But saving money without letting it grow is like keeping seeds in a jar. You’re not spending it but you’re not planting it either. If you save ₦10k every month, that’s ₦120k a year. But if that same amount were invested in a treasury bill or mutual fund at 15–25% annual return, your money wouldn’t just sit, it would work. Even small gains can compound into something meaningful over time.
The truth is, waiting for one big sum to solve everything isn’t realistic. Saving little by little makes more sense and it actually works. That’s why platforms like Ladda are changing the game. With Ladda, you can set a target and grow your savings faster, with returns of up to 20% annually. No pressure to do it all at once, just consistency. You’re not only saving, you’re also earning.
This is what financial growth looks like: keeping your discipline, but pairing it with a system that helps your money grow quietly, consistently, and automatically.
We also need to be careful. Not every group is well-structured. Some are run by one person who collects everyone’s money. No written rules. No clear refund process. No transparency. These setups can and often do go wrong. Before joining any savings group, ask: is this documented? Is there proof of contributions? Is there a backup plan if someone defaults? Emotions shouldn’t guide your money decisions.
So the issue isn’t that ajo is “bad.” It’s that many people stop there. They see it as the goal instead of the first step. If your money isn’t earning, it’s quietly losing value. Especially now, when prices are rising and cash is getting weaker by the month.
Discipline is great. But discipline without growth keeps you stuck.
Question for you:
Are you part of an ajo or cooperative right now? Has it helped or hurt? Reply and share your experience. We'd love to hear your story (anonymously, if you prefer).
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