Let's talk money. If you no longer want to be a slave to money and debt- here is a solution that is often overlooked in the overall Black community. I am speaking about “Susu Economics” also known as “rotating credit associations.”
Now if you are in New York, or you've been somewhat cultured by Caribbean culture, then you may already know what Susu Economics is. In fact all Immigrants in America have their version of Susu. Have you ever wondered how people from other countries are able to purchase businesses in your community and become financially stable and wealthy? Jews, Koreans and even many native Africans understand the power of Susu Economics.
All expect most of us- still fumbling over capitalism. And many of us that can't control our consumer habits long enough to save the money we require.
“Susu” originally comes from African tradition, the word translates from the Yoruba word "esusu," meaning "pooling the funds and rotating the pot." Since speaking about Susu Economics to many of our people, I've learned that we have many “skeptics” that still cannot figure out how and why it works. So I am writing this so that even a small child could understand it.
Explaining Susu Economics.
Normally a Susu is started by a small group of people, usually family or a group of friends. You may not find Susus online that you can join. It's not that type of party. Susus are usually kept very private, and as I explain further we can understand why. But once I explain it, you can start your own Susu- it's not that difficult at all.
Main Challenge.
Most Susus are small, but there are some that can have more than 25 people. Most Susus have at least 5-10 people. The most important member of a Susu and usually the one that organizes it- is the Susu banker. A Susu banker is often times a business owner or someone with access to a special secretive place where the money would be kept safe.
Since learning of Susus there are actually Cops that raid these places and lie saying the banker was selling drugs. That way they get to keep the money. While Susus are not illegal, it's very difficult to file claims once cash money is stolen (Especially if you didn't want the Government to know about it in the first place.)
Keep that in mind because this is also the reason most “Susu bankers” are not the types that can easily be pushed over either. All Susus are ran differently, but for security reasons- sometimes the banker collects the money themselves and the members may not know of each other as all. The banker is often a very trustworthy member of the community, but the main parameters of the Susu is often kept very secretive, especially where the money will be held. I've just explain one of the main challenges for running a successful Susu, but everything else is gravy.
This is how it works.
Most Susus are set up to collect a fixed amount of money weekly or bi-weekly. Let's say a Susu has 10 people that have agreed to give $100.00 each week. Every week 10 people will give $100.00 to the Susu banker. The number of weeks depend on the number of people. The smaller amount of people, the smaller amount of weeks.
The Susu banker now has a “pot” equal to $1,000.
The Susu banker then gives the pot to one of the Susu members that very same week. This continues each week and each week a different member gets $1,000 until the 10 weeks are up. Then the rotation starts over again.
At least one week separates each beginning rotating giving each a member the opportunity to back out if they wish to do so, or to find someone new to replace them. Keep in mind the Susu banker is normally included in the rotation, but to make the explanation neater- they were left out of the rotation. But with the Banker it would be 11 Members and 11 weeks within the Susu. Some Susus may start out with as little as $50.00 with 25 people – it all depends on the organizer and the people involved.
???
Now some of us ask- what is the gain in all of this? It's still my money. I've paid $1,000 into this system over 10 weeks and I'm getting $1,000 back- I don't get it. Couldn't I simply save my own money every week in a shoe box for 10 weeks and have $1,000 at the end of the 10 weeks?
Yes. And some people do in fact do that. But the reason Susu economics works so well with African people is because, first of all our Ancestors were doing this- it's in our genes. 2Nd, there is a difference between saving money and contributing money. Susu economics is doing both. We are in fact contributing money in the form of cash credit to members in the group. As well we are saving money because we are getting that same money back.
No loss. The sense of giving is a powerful conduit here.
The other interesting mystery about Susu economics is that the members pooling their money together in this manner often move on to become very financially independent even after establishing enough capital to stop.
The pooling of money is how banks are created and how wealth is created as well. Some Africans actually believe that everything is a Susu when we really look at it. Currently we are all involved somehow in a unfair Susu system where the bankers get the larger quantity of the pot. This is true in trade as well as banking.
It's not that we do not earn the money because we do. The question is what are we doing with these earnings? Most Susu members use their pot to invest in businesses, equipment, ideas etc. In NYC for example there are people that are part of 3-4 Susus all at once. $10 dollars here, $200 there and so on. It does work.
Most of my native African friends use Susu Economics to built their businesses and take trips to the Mother land whenever the see fit. Most of us would basically use it to pay down debt. That's fine too. To feel safer, in reality most people choose the small groups with small weeks. 5 member Susus are very popular now. I've heard of people creating online Susu systems by using paypal to pool their money towards one Banker who them pays out that money the each member the same way. I guess that would work too, but paypal is getting paid off of that system. Paypal earns enough money as it is. The true vein of Susu Economics is nation building. By Metaverse
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