Black People : Got Money?

Discussion in 'Black People Open Forum' started by Metaverse, Oct 3, 2009.

  1. Metaverse

    Metaverse Well-Known Member MEMBER

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    [​IMG]

    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.

    [​IMG]
    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.

    [​IMG]
    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.

    Learn more about Susu Economics
    Susu and Susunomics.
     
  2. Blaklioness

    Blaklioness Well-Known Member MEMBER

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    How about devising a non-money based system of 'economics'? After all, wouldn't this help deter the exploitation and manipulation that often accompanies money?




     
  3. Metaverse

    Metaverse Well-Known Member MEMBER

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    Queen Blaklioness, you are speaking about a bartering economy. Any type of economy can work, if the people themselves come together and agree to it. It depends on where the financial and investment interests of the community is directed.

    As a nation Black people are the top consumers, so we should already know where most of our billions are going. Bartering would not curb that, because again- this still requires organized effort. If it not bartering, but we are using some other method as non-money, it would still represent money in the end. Because money is the rate or value of energy transference. This is based in the imagination, and it is all in fact arbitrary.

    But we aren't taught this which is why money is always a problem in society- and the banker basically takes advantage of our lack of knowledge. If we really wanted to tackle the money issue head on, we should start with who or what decides the value/worth of goods and services. Why does an apple from a local farm cost as much as an apple that came from another country? These are things we do not question. And because we do not question such things- retailers take advantage of our lack of knowledge.

    Susu Economics encourages the financial group think tanks- and we need more of those in order to take control of the financial future of Black America. As a nation we are afraid to talk about money, but we love to talk about other people's money. Black Men and Women very rarely speak about their earnings. If we see a Black Man supporting his family we would never ask him how much he is earning to support that family. Why not? That is critical information.

    In the south many families are able to raise 2 children comfortably earning $25,000-$30,000 a year. Parents should try teaching their children that money is all about the numbers they are able to produce. So if you can earn $30,000 a year selling oils at a market, doing hair or making art- that is as great as being a Doctor or Lawyer- even more so in my opinion. Because the illness of not appreciating who we are and how we are is part of what is killing us. We focus too much on fake titles and false idols.

    Now if we operated in this manner any system we design to exchange goods and services would make sense. Now we start seeing ourselves as a collective of earners instead of individual earners. Black cities earn billions every year that don't rotate at all. Pooling money and passing the pot around can teach us the worth of our communal energy and efforts.

    But we are worlds away from that, maybe the recession has stirred up some visions for a better economy- but so far the Ancient systems are the ones that continue to work. Susu economics continues to work. Still it would work with any resource. It reminds me of the "rock soup" fable, when people pool together the little they do have, it is only then they realize the power of community. Most wealth comes from a community of people. Even the lottery.
     
  4. LindaChavis

    LindaChavis Well-Known Member MEMBER

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    PayPal

    It depends on how you use paypal because it costs nothing if you go checking to checking. If you use a credit card or debit, there is a small fee.



    I guess that would work too, but paypal is getting paid off of that system. Paypal earns enough money as it is.
     
  5. Knowledge Seed

    Knowledge Seed Well-Known Member MEMBER

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    Truth be told, Susu isn't really a saving and/or investing system. Its actually an interest-free loaning system.

    It sure beats going to the bank, though.

    Personally, I think as each member builds more wealth, they should begin contributing more to the Susu. An example of this would be, initially, everyone contributes $25 to the Susu. But after it has ended and everyone has been paid, each person uses that money to create an income stream(business, investments, etc). Now when the Susu starts back up, everyone can contribute $50.

    It really gets interesting when everyone in the Susu is making 6 or 7 figures a year and its able to contribute thousands of dollars a week.

    At that point, they can begin to provide interest-bearing loans to people outside the Susu. Maybe they could even form a bank or credit union.
     
  6. Metaverse

    Metaverse Well-Known Member MEMBER

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    Online paypal Susus seem to be working, but they are very rare because of the fees involved, not just from paypal but the pre-paid cards most people are using these days. But- if the group agrees to include these fees it should work just as well.

    Informative links:
    http://en.wikipedia.org/wiki/Rotating_Savings_and_Credit_Association
    http://www.cluteinstitute-onlinejournals.com/PDFs/2007222.pdf

     
  7. Metaverse

    Metaverse Well-Known Member MEMBER

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    Bro. KnowledgeSeed yes there are many types of Susu systems however. It all depends on the group because some Susus do generate interest, and fees- as expected Europeans are selling our own system back to us with interest. As they do with everything else. There are some private groups going door to door signing people up for this. Especially home owners.

    But those are the Susus I would not be part of personally, because it gets away from the grand idea. There was a case many years ago in Brooklyn NY, there was a very big 24 month Susu going on. People were walking away with $100,000 in 2 years. And like you said, some of those people decided to form their own Susus, Credit Unions and in some cases their own lending firms, credit card systems etc. Well, these systems do not work as well with people who have no financial training, which is actually the core idea behind a Susu.

    Let's think about it. If people were able to walk away with $100,000 after 2 years what does that mean? It means that is money they were making but were unable to save. It also means that becoming a member of a Susu "psychologically" allows us to generate the money required to participate in the system. That's just how the Human mind works.

    None of those people would be able to save $100,000 in 2 years in a shoe box or a bank because of the psychology surrounding money. We often spend and payout more money than we save. Susu Economics arrests the concept of "paying out" money already programmed in us. We are all programmed to pay out money regardless we if realize it or not.

    Small Credit Unions work as well. But unfortunately when people get into the business of loaning money as in credit and charging interest for profit, this is not solving our financial problems. I would say it is better for people to learn how to deal with the money they can generate collectively and the Susu system is one of the tried and true ways to do so.

    The more people that know about Susu economics and how it works and how easy it is to create one, the more people that get involved, network and organize- the more our people will become "mentally trained" to handle the money they generate which is the grand idea. We have people earning $45,000 a year with $32,000 a year cost of living expenses- where did the $13,000 go? Through the mysterious portals of habit. Some people blow $53 dollars a day just because they can. And this is why we still have a problem with money as a nation.

    Business savy people understand better why such systems are effective especially when there is inventory to be purchased. Some Susus are dissolved once everyone has had their turn also. So it was really not designed to create long term dependency, it was created to get people the money they required by having everyone come together to do so.

    I would love to see a Susu system designed to benefit single Mothers. It can be done, we need more financial think tanks and then it would make better sense.
     
  8. RAPTOR

    RAPTOR Well-Known Member MEMBER

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    I read about the susu concept in wilson's "blueprint for plack power".

    I see no reason why this system, susu, can't work for us.

    It worked for chinease, japanease and koreans. Joel kotkin wrote a book
    called "tribes: how race, religion and identity determines success in the new
    global economy".

    It is an exceptional case study on several ethnic/racial groups including the asian
    groups previously mentioned and also jews, brits and continental indians and how they
    worked to pull their resources and build an economic base in their interest based on a
    common background, rather it be racial or cultural etc. Kotkin also made mention of susu.

    If a group of dedicated individuals come together and put a x amount into
    the pot over a period of time agreed upon, toward whatever it would serve
    quite well towards jumpstarting economic wealth in the community.

    Good stuff MetaSaience!
     
  9. Ankhur

    Ankhur Well-Known Member MEMBER

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    Sou-Sou's are one of ouur hundreds if not thousand cultural atributes that were raaped from the collective concious of the Black community in north America during slavery, unfortunately,
    by virtue of us not networking these principles amongst, the national Black community, the corporate banks have picked up on it and used it for their advantage
    (ref; Blueprint for Black Pwer' A Moral, Political and Economic Imperative for the Twentieth Century, page 738)
    The great irony of course is that these same banks now in need of bail outs and recieving presently, could have been purchased collectively, by the Community if we had a collective understanding of the Sou sou, and animplemetation process,
    designed for the Common Good
     
  10. CITIZEN

    CITIZEN Well-Known Member MEMBER

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    Interesting...

    My Caribbean friends do this, but they call it "partner" instead of sousou
     
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