What Should You Know Before Joining a Chama?

Have you been thinking of joining a Chama?

A Chama is a group of like-minded people who share one common goal, which is to ultimately make money through investments. Chama members regularly discuss investment ideas and decide how to invest their joint assets.

Many of us find it easier to join a Chama that is already in operation as it removes the hassle of starting a new Chama from scratch. Whilst this may look like the easy way out, you need to be on the lookout.

It is important for one to carry out some research on the Chama that they wish to join. This makes it easy in making the decision which should align with one’s long-term goals. Although Chamas are good, not all of them may be fit for you.

Chamas are different and thus, it is important to look for certain traits that distinguish the right Chama for you. These may include the following:

Objectives

Before joining a Chama, try and find out what the objectives are. This is so as to make sure that they are the same objectives as yours.

While at it, one should make sure that they understand what the investment approach is too. Some groups look for short-term wins while others invest for long-term gains. Either approach can work, as long as the members agree. If this Chama invests in a way that is counter to your objectives, find another Chama.

Founders

The backgrounds and profiles of those who started off the Chama is key. This will enable one to be in a position to go through each and every one of them, understand their areas of specialty and their achievements.

Everyone wishes to be associated with winners or achievers, this is why understanding the profiles of those driving the Chama will be reason enough to make one either join or not.

Monthly contribution

Every Chama has a stipulated amount of months to be contributed be it daily, weekly or even monthly. Is the regular contribution too steep for you? This kind of information will enable an individual, depending on their strength to be able to pick a Chama that suits them.

If one joins a Chama with very high contributions that are beyond their reach, they will end up straining and falling out along the way. Therefore, choose one that has a reasonable contribution that is pocket-friendly.

Chama Activities

Find out, what activities does the Chama engage in? What is inline that is being discussed for the near future and what activities have they had in the recent past?

If you want to know the direction the Chama is taking and whether that direction fits your goals as an investor, you will need to find answers to these questions. Some Chamas have a lot of social activities and bonding activities.

Others focus more on educational activities. If you are not sure of the types of activities that are being run by the Chama you wish to join, ask if you can attend a few of their meetings and activities. This way you will be able to see if the Chama is a good fit for what you hope to achieve.

Mission Statement

What is the Mission Statement of the Chama that you think of joining?

The mission statement speaks a lot about everything that the Chama is made of. It is what defines the Chama and it gives a sense of direction. If you like the mission statement, try and find out how the Chama has lived up to its mission it and you will be able to get a better idea of whether or not it is the right Chama for you.

Take time and ask questions to those who are members already. How has the Chama benefited them? Consider whether or not the Chama is best suited for beginners or seasoned investors.

Heard about Rafiki?

Rafiki Microfinance Bank has a Chama Account that is dedicated specifically to Chama’s in Kenya. The account comes with numerous pluses for every Chama member. For instance, a Chama will be enlightened oh how and where to invest, they will be given a loan to invest among other things.

You can also have a look at 13 best ways to make money online.