It has been several months since I last posted blog articles related to finance or savings tips. So, I decided to write my thoughts and opinion of “paluwagan” or “huluganay kwarta” in Bisaya.

And if you are interested, here are my past financial posts.

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Update: Stock Market and Mutual Fund are Down and New Investment in Cryptocurrency 

Requirements for Credit Card Application in Thailand

What is Paluwagan?

Paluwagan is a money system planned and agreed upon by a group of people where a fixed amount of money is collected weekly or monthly. Once all contributions are gathered, it will then be released to a member of the group. All contributors will take turn receiving the lump sum until the whole cycle is completed.

The table below shows a sample of how paluwagan works. Juan, Pedro, and Maria share 1,000 every month. Then, one of them will receive the total collection, say, Juan in January and Pedro in March.

People who join paluwagan usually do it with their close friends, relatives or workmates. Trust is a very important factor in this system.

My opinion

Personally, I think it’s a good alternative of saving up money. More so, those who have problems keeping their money themselves will find it more effective. In a way, someone is in-charge of your money. All you have to do is give your share and wait for your turn to get hold of all of it.

However, this system highly depends on the commitment of the whole group. It will not work if someone failed to remit their share or suddenly quit or disappear. So, my advice before participating in any paluwagan is to check the credibility of the other members. In the same way, ask yourself the question, “Am I capable of maintaining my share?”. Otherwise, you are only wasting your time or other people. It is best for you to know all the members in some capacity.

My Paluwagan Experience

Overall, I only took part in paluwagan once before. It was among trusted friends and relatives. Our monthly share was 2,000 Baht. In the end, I got my whole money which then, I paid to buy something I really wanted at that time, an iPad.

My second time which I’m currently involved in is among my colleagues. This time, my monthly share is more than double than my previous one, 5,000 THB. So far, it’s going well. Some have gotten theirs while others are still waiting, including me. =)

Ultimately, I think it’s a good saving strategy. Instead of keeping your money stagnant in the bank with a possibility of withdrawing it, you allow someone to temporarily use it. Therefore, you make someone happy and wealthier and you get to have your turn too. But make sure whoever they are, are part of your trusted circle,

What do you think of “paluwagan“?


My name is Ira, twenty-something OFW, currently living and working in Thailand. It has always been my dream to start a blog. My goal is to share my life experiences, travels and my personal journey towards financial freedom.
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