How to start an ajo contribution

Before you start

Every ajo depends on people paying after they’ve already collected. Before you invite anyone, ask whether you’d lend that person the full amount, because the early collectors are getting something close to a loan. If you’re new to it, read what ajo and esusu mean first.

How to set one up

1. Invite people you know.
2. Agree the amount and how often you pay.
3. Choose who coordinates the money.
4. Settle who collects when.
5. Put the rules in the WhatsApp group.
6. Share the dates, then start the first round.

1. Invite people you know

Colleagues, family, church members and traders in the same market all work, because you see them regularly and you know where to find them. Be careful with anyone nobody in the group can vouch for. For a first ajo, a small group is easier to manage and finishes sooner.

2. Agree the amount and how often you pay

Set an amount the person with the smallest income can still pay in a difficult month. Match the timing to how people earn. Salary earners usually do well with a monthly payment just after payday, while traders may prefer daily or weekly.

The amount collected is the contribution multiplied by the number of people, and the ajo runs for one round per person.

3. Choose who coordinates the money

A coordinator

One trusted person collects from everyone and pays it out. It’s simple for members, but all the money passes through one account.

Direct transfers

Each member sends their money straight to the person collecting that round. Nobody holds the money, and each transfer leaves a bank alert as proof. Someone still has to keep track of who has paid.

4. Settle who collects when

Most people would rather collect early, so agree the order before anyone pays. You can settle it in a few ways:

• Pick at random, which nobody can call unfair.
• Agree it together, so someone with school fees due in January can go in January.
• Let the coordinator decide, if the group is happy with that.

You could put newer members later in the order, or the coordinator last. Then the people you know least have paid in for a while before they collect. Our free rota and pot calculator can pick the order and work out the dates, then you can paste the list into your group.

5. Put the rules in the WhatsApp group

Write the rules in one message before the first transfer and ask everyone to reply to agree, so there’s no argument later about what was said. Include:

• The amount, the payment date and the latest time a transfer can arrive.
• The order of collection, and whether two people can swap.
• Who confirms each payment, and whether you share proof of transfer.
• What happens if someone pays late, and who speaks to them.
• That everyone keeps paying after they’ve collected.
• What happens if someone has to leave.
• Each person’s full name and the account they’ll collect into.

6. Share the dates and start

Post the full list of dates so people can plan around their turn. After each round, tell the group that everyone has paid and who collected.

What to know before you begin

An ajo is an informal arrangement based on trust, as PiggyVest describes it. Clear rules help, but they don’t remove the risk. Only put in money you could cope without.

This guide is general information and isn’t legal or financial advice.

Running it on CircleSave

You can set the amount, schedule and order on CircleSave, then share one link in your WhatsApp group. Everyone can see who has paid and whose turn is next, and members get reminders on WhatsApp. Members pay each other directly, so we never hold the money. A circle can have up to 10 people, and we can’t promise everyone will pay.