Growing up in Haiti, many of us are familiar with sòl or susu savings circles, where everyone contributes money, and each member takes turns receiving the lump sum. It’s a system built on trust, and when it works, it helps families cover big expenses in the short term.
Today, investing in stocks, bonds, and real estate has become so accessible and affordable that it’s hard to ignore.
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What’s a Sòl or Susu?
A sòl (Haitian creole) or susu is a collective savings system where a group of people each contribute a set amount of money every month. A treasurer holds the funds, and members take turns receiving a payout often called “a hand” or “men” (Haitian Creole for hand).
In the end, each person gets back exactly what they contributed… no more, no less. It’s a traditional form of saving that doesn’t generate interest, but it does guarantee discipline and timing.
Here’s a scenario:
| Sol/Susu Participants | Monthly Contribution |
| Jane | $100 |
| Joe | $100 |
| Bryan | $100 |
| Bill | $100 |
| Anna [Designated Treasurer] | $100 |
| Total: | $500 |
Each month, Anna is responsible for handing $500 to the designated person in the order. Since there are five participants, the sòl/susu cycle is only complete once everyone has received their “hand” or “men.”
When Trust Breaks, Everything Crumbles
Some of you might disagree, but there are no real monetary benefits in a sòl/susu besides guaranteeing your lump sum, assuming everyone honors their responsibility.
A friend of mine unfortunately learned this the hard way. I’ve been trying to convince him that now that he’s in the States, investing in assets like stocks and bonds is one of the easiest and most accessible ways to grow wealth. But he struggled with the idea of putting money into something without knowing exactly when he’d get it back. The thought that he could also lose it all was unsettling.
I realized his focus was more on the short term since he wanted a set timeline. So, being the friend that I am, I broke it down for him: when you invest in stocks, you’re buying ownership in a business. Some even pay dividends monthly or quarterly. You can even lend money to the government or a company by buying bonds.
Of course, they all come with some risk. Just like everything else you work for. The difference is, with investing, your money has the chance to grow over time, while a sòl/susu only guarantees the amount you put in.
But he wasn’t convinced. He told me he had been part of sòl/susu groups for years in Haiti and had never been burned.
Unfortunately, his first bad experience happened here in the States when he joined a sòl/susu with a group of friends. How can I put it? One of them wasn’t exactly the most trustworthy person to do business with.
That one member chose to go MIA (missing in action) just two months before it was time for him to receive his hand. Which has caused the participant before him and those after to lose a portion of the lump sum.
He had no choice but to accept the loss.
Why Investing Matters
I’ve been investing for about five years now. I don’t consider myself a professional investor (no one can predict the market), but I can share what I’ve learned along the way.
The best part? You don’t need to be an expert to start.
As the gurus like to say: invest in what you know.
Think Apple (AAPL), Google (GOOG), or Nike (NKE).
But to really understand whether a company is worth your money, you’ll want to get into the fundamentals by looking at reports like the 10-Q (quarterly) or 10-K (annual).
Here are a few basics you’ll see often:
- FCF (Free Cash Flow): Cash left after expenses and investments.
- ROIC (Return on Invested Capital): How efficiently a company uses its money.
- P/B Ratio (Price-to-Book): Stock price compared to book value.
- EPS (Earnings Per Share): Profit divided by outstanding shares.
And that’s just the beginning…
Because I focus on dividend stocks, these are companies that share a portion of their earnings with shareholders. There are three key things I usually look for. Let me walk you through them.
1- Dividend Yield: How much the stock pays annually.
Anytime there’s something going on with a company, let’s take Nike for example, due to its weak sales in store and online, their share price dropped, which makes the dividend yield go up. A higher yield often signals that the stock is getting cheaper.
However, keep in mind that just because the yield rises doesn’t automatically mean it’s a good entry point. It could also be a warning sign that the company is facing serious trouble. Personally, anything above 6% is considered risky to me.
2- Dividend Growth History: Companies that consistently raise their dividends.
3- Valuation: Just because it’s a good dividend stock doesn’t mean it’s worth buying. Sometimes you may be paying a premium.
ETFs vs. Mutual Funds
Now… if you want to take the simpler route (especially those new to the investing game), the best strategy is to buy Mutual Funds or ETFs (Exchange-Traded Funds) and let them run their course.
Mutual Fund is a basket of different investments (stocks, bonds, or both). It’s managed by fund managers. Therefore, because they usually come with higher fees, I wouldn’t recommend starting with them. Also, unlike stocks, buying and selling is done at the end of the trading day.
ETFs work similarly to a mutual fund. It’s also a basket of investment. It’s traded in the stock market like an individual stock. You’re able to sell and buy through the trading session like every other stock. Most importantly, the fees are way cheaper than mutual funds.
Because I like the flexibility to trade whenever I want and pay fewer fees, I prefer ETFs over mutual funds. Some of my favorites include VOO, SPY, VTI, and QQQ. To give you a better idea of how they work, let’s take a closer look at VOO and see how your money would be split among its top companies if you invested $1,000.
| Ticker | Company | % |
|---|---|---|
| NVDA | NVIDIA Corporation | 8.07% |
| MSFT | Microsoft Corporation | 7.38% |
| AAPL | Apple Inc. | 5.77% |
| AMZN | Amazon.com Inc. | 4.12% |
| META | Meta Platforms Inc. | 3.12% |
| AVGO | Broadcom Inc. | 2.57% |
| GOOGL | Alphabet Inc. (Class A) | 2.08% |
| GOOG | Alphabet Inc. (Class C) | 1.68% |
| BRK.B | Berkshire Hathaway B | 1.61% |
| TSLA | Tesla Inc. | 1.61% |
With mutual funds and ETFs, if a stock doesn’t perform well, it can be replaced by another qualified one. In other words, underperforming stocks won’t cause the entire ETF to crash.
Brokerages You Can Use to Start Investing
To start investing in stocks, bonds, or real estate, you can choose from one of these popular brokers:
Of course, always do your own research and choose what best fits your needs.
In conclusion, you have a much better chance of building wealth through investing in today’s technology-driven world than you did 10 years ago, especially if you’re focused on long-term goals. Short-term options like joining a sòl/susu can be risky and don’t generate interest, especially when there are many participants involved.
Gio founded TheGrowthFocusedGuy in January 2020 because he was fed up with debt.
His mission is to document his journey to Financial Independence in order to motivate and inspire others to get out of debt and begin building generational wealth.
