Most people think saving money is a solo mission—cutting back on lattes, stashing cash in a savings account, and hoping for the best. But what if you could save money faster, stay accountable, and even get a lump sum of cash sooner—all with the help of a trusted group?
That’s where tandas come in. Also known as susus, partner hands, or savings circles, these have been around for generations in Africa, the Caribbean, Latin America, and even Korea. They’re all about pooling money together in a smart, structured way so everyone benefits. And if you play your cards right, tandas aren’t just about saving—they can be a secret weapon for funding a side hustle or making smart investments.
What Exactly Is a Tanda?
Think of it like a community savings plan where everyone chips in regularly, and each cycle, one person takes home the full payout.
Let’s say you and four friends each put in $50 a week. That means every week, someone gets a $250 payout. The cycle repeats until everyone has received their lump sum, and then you can start over if you want.
It’s basically like getting a zero-interest loan, except it’s powered by trust and teamwork instead of banks and credit scores. It also forces you to save—since skipping payments isn’t an option without letting your group down.
Why People Love Tandas
Sure, you could save that $50 on your own, but let’s be honest—it’s easy to dip into your savings when there’s no accountability. Tandas keep you committed because you know others are counting on you.
But the biggest reason people love tandas? You get money faster. Instead of waiting months to save up for something, you could get your lump sum early in the cycle and put that cash to work right away.
And this is where things get interesting—you can actually use tandas to MAKE money, not just save it.
How to Use a Tanda to Fund a Side Hustle
Most people join tandas just to save, but if you think strategically, you can turn that pooled money into a money-making machine.
The Smart Way to Stack Payouts
Instead of joining just one tanda, join multiple tandas with staggered payouts to create a steady cash flow.
- You join Tanda A and get your payout early.
- At the same time, you join Tanda B, but your payout is scheduled later.
Now, you’ve got an instant cash injection from the first tanda, and before that money runs dry, boom—another payout from the second tanda. This can keep money flowing into your business or investments.
Turn a Tanda Payout Into an Investment
A lump sum of cash is great, but instead of spending it on random stuff, put it somewhere it can grow.
- Stocks & Index Funds – You don’t need thousands to invest. Many platforms let you buy fractional shares with as little as $1. Want to know more about making money through smart investing? Check out this side hustle strategy.
- Cryptocurrency – Bitcoin and Ethereum are risky, but if you play it smart, even a small investment can turn into something big.
- Buying Inventory for Reselling – You can flip discounted products for profit on sites like eBay, Facebook Marketplace, or Amazon. Speaking of flipping, did you know you can turn old furniture into cash?
Use a Tanda Payout to Start a Side Hustle
If stocks and crypto aren’t your thing, use the payout to start a business that requires little upfront investment.
- Freelancing – Take an online course in graphic design, copywriting, or social media management and start selling your skills. Need inspiration? Here’s how Gen Z is making money with side hustles.
- YouTube or Content Creation – Invest in a decent camera and mic to start making content that can generate ad revenue or affiliate commissions.
- Vending Machines – Believe it or not, you can make serious money with vending machines.
Staying Organized with Multiple Tandas
Juggling multiple tandas isn’t for the forgetful. You need to stay on top of payments, due dates, and payouts to keep everything running smoothly.
- Google Sheets or Excel – Track your contributions and payouts in a simple spreadsheet.
- Budgeting Apps – Some apps let you set up custom savings goals, which can help you stay disciplined.
- Notebook Method – If you prefer old-school pen and paper, write everything down and check it off weekly.
Communication is key, too. If something happens and you can’t make a payment, be upfront with your group. Trust is everything in a tanda, and a good group will work with you if you’re honest.
Are There Risks to Tandas?
Tandas sound great, but they aren’t risk-free. The biggest issue? They rely on trust.
- Default Risk – If someone stops paying, the cycle falls apart.
- No Legal Protection – Unlike banks, tandas aren’t regulated, so there’s no safety net if something goes wrong.
- Group Drama – If rules aren’t clear, disagreements over payouts or contributions can happen.
To avoid problems, only join a tanda with people you trust. If you’re looking for a safer alternative, some online platforms now offer digital tandas that help build your credit score while protecting against defaults.
Tandas as a Financial Tool
At the end of the day, a tanda is just a tool—one that can help you save smarter, start a business, or invest in your future. It’s not a magic money machine, but if used correctly, it can supercharge your financial growth.
Even if you don’t join a tanda, you can still apply the same principles to your finances:
- Save consistently – Whether through a tanda or a solo savings plan, steady saving builds wealth.
- Use money to make money – Instead of blowing lump sums, invest them in ways that grow.
- Leverage community support – Money doesn’t have to be a solo journey—find people who will hold you accountable.
If you like the concept but don’t have a group, you can even start a personal tanda—automating weekly transfers to a savings account and treating yourself to a payout when you hit a goal.
Final Thoughts
Tandas have helped people save, invest, and build wealth for generations. Whether you use them for discipline, funding a side hustle, or investing, they’re a powerful way to take control of your finances while working with a community.
The secret to success? Be smart, stay organized, and always make your money work for you.
So, if you got a $1,000 tanda payout today, how would YOU use it?
