Money Pooling between friends

ittunni

Thanks very much for all your advice, I have decided to stay away from this. I too struggled to see the benefit at first, but you've reinforced my doubts. Much appreciate it.

edinburgher

These sorts of schemes are still very popular in parts of the developing world and more developed countries where formal banking institutions aren't as common.

That said, these typically work because they exist within local communities where the pressure of being shunned if you stop paying in would make life unbearable.

Come to think of it, my Gran used to take part in a similar thing at her church - everyone chipped in £2 or so once a week and every fortnight someone won £200, with the rest going to charity.

I'd consider it if you had a very close group of friends and it was a bit of fun (i.e. £20 a month, everyone has to win once a year). But no, definitely wouldn't let it replace my emergency fund.

Mrs_Z

Yes, and how would you diffrenciate whose need is most important? Say one person's car brakes down and other person's boiler needs replacing in the same month? Definitely a receipe for a disaster and as many have already suggested above, better to start your own.

Good_Money

We did something in the office for a while where every Friday you all put in £1 and you all had a number between 1 and 49 ?

On Saturday when the lottery was drawn if you had the same number as the bonus ball you win the money.

mulronie

This is how co-operatives/mutuals/building societies/credit unions started - and they are much better at it and more reliable than your mate Dave down the pub.

My advice is never mix money and friendship, because eventually you will lose both.