PEER-TO-PEER (P2P) FUNDING AND CONTRIBUTION: AN AGE-LONG SYSTEM OF RAISING FUND THAT IS STILL RELEVANT TODAY
PEER-TO-PEER (P2P) FUNDING AND CONTRIBUTION: AN AGE-LONG SYSTEM OF RAISING FUND THAT IS STILL RELEVANT TODAY.
I was born to see my parents involved in one form of peer-to-peer contribution and funding. As a child, I realized that almost everything we got was from this system. My parents were petty traders with little earnings as income. Their earnings were so insignificant that they could not buy us anything apart from food. Therefore, the greatest percentage of their money went to feeding. In this case, being able to get other house stuff like electronic appliances, sofas, kitchen stuff and even paying off our school fees became a herculean task. I guess it was this reason that made them to be involved in this system to raise money. During my growing up years, my parents were able to build a house and got other things necessary to make us comfortable and all of us were able to go through the university. Remember, my parents were not wealthy but they were able to live like most rich people of their days.
This system is mostly regarded as crowdfunding, I might be wrong though but the way it worked then was that a group of people would contribute a certain amount of money afterward the money would be pooled together and given to one person. It continued like that till everyone in the group collected his share of the contribution. This is an aged-long system of raising money for projects and businesses. It has existed for years and it is still relevant in today’s world.
There are lots of benefits derivable from crowdfunding and a few of such will be highlighted in this writeup below.
A MEDIUM FOR RAISING MONEY
One of the advantages of involving in a peer-to-peer contribution and funding is that it enables you to raise money for a specific purpose. A typical example is that you can raise capital for business or money for any projects like building etc. This money may have been difficult to raise through savings and other means.
HUGE AMOUNT OF MONEY IS RAISED WITHIN A SHORT PERIOD
Another benefit of involving in this system is that a huge amount of money may be realized within the shortest period. This is the amount that would have taken a long period if it was to be saved. Therefore, when the money from the group is pooled together, it becomes huge and is given to one person which will enable him to carry out his project.
IT BREEDS FINANCIAL DISCIPLINE
Some people are financially reckless and indisciplined hence leading to financial mismanagement and misappropriation of funds. Therefore, with this system of contribution, one will be able to curtail reckless and unnecessary spending hence channeling the money to contributing to another person.
However, it is worth noting that this system also comes with some risks because some dubious persons may fail to contribute their quotas after collecting their share of the pool. Nevertheless, there are means employed to always get group members to contribute their quotas.
The peer-to-peer contribution system has helped me in so many ways. For example, my mobile phone was bought through this system, my house rent too was paid through this system, and how about my pc? it was also gotten through this system. Therefore, if you are finding it difficult to save your money or raise money for a project, I would suggest that you go into crowdfunding among your trusted peers. [this is not a financial advice]
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