Yes, I am beginning this article with that statement. I don’t believe that the paluwagan system is a good mode of saving. Have you ever been invited to join one? Been tempted to try? I did – a long, long time ago. And that is the reason for writing this. Read on and I’ll tell you why.
How does ‘paluwagan’ work?
* A group of friends or work colleagues agree to contribute a specific amount on a specific day. A collector is designated from among the group members to collect from everyone and the money goes into a pool of funds. To illustrate, let’s say there are 4 friends, each one putting P100 into the pool each month.