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I was chatting to a friend recently. She was a bit flush with cash, so she was offering to lend it to me to assist with my move. Lending it to me was a way she considered the money would be out of reach, but still going to come back to her in a month or two down the track, when she’s likely to once again be skint (coz she’s a uni student). And I declined her loan, but we began to talk about an idea I had a while back, and I’ve been bouncing off people for a while. It goes a little something like this.

Within a small circle of friends – no more than 10 – we establish an account with a bank. Into that account, we divert one percent of our income. The amount is small enough that we’d not notice it disappearing, but over time, it’d grow.
When one of the circle needed cash for something out of the ordinary (a rental bond etc) then they’d be able to borrow from the fund. Obviously, if everyone saw it as a cash-cow to be milked as hard as possible, the funds in the account just wouldn’t hold up to it. But for small purposes, it’d act as a kind of ‘revolving money’ scheme to allow friends to help each other out.




  1. Fantastic idea in theory, but the catch is finding that amount of people who can trusted.

  2. It’s a good idea…in theory, but there has to be rules and limits and someone would have to administer it. I think that what would happen is some people may use it a lot/too much, whilst others wouldn’t use it at all and ironically the people who are putting the most in are least likely to need to use it.

    What I have always liked is the group betting competition. I did this at a workplace once. everyone puts in a couple of bucks a week and then everyone has a turn at betting the cumulative weekly amount on something that week. Sport, Racing, Lotto, (anything but pokies) and then the winnings all go into a pool and if you win more than double what you bet, you get another go.

    Of course, you would get nowhere near the amount that would go into the 1% Fund, but it does grow.

  3. hmmmm i like the theory behind it, how would you ensure that the account doesn’t get cleaned out?

    you could create an awesome pot of cash, and go into buying property and selling it! an investment group.

    and 1% isn’t too much to handle.

  4. Thanks for contributions. It’s an embryonic idea at this stage. And we’ll see what happens when we thrash it around a bit.

  5. Obviously you would only involve those people you believe you can trust, so you wouldn’t offer the chance to some dude you met at a bus stop in Kings Cross. And if someone cleaned it out and didn’t repay, well they wouldn’t get another shot. And with only losing 1% of your income, it wouldn’t really damage anyone if the loot did get cleaned out by some selfish bastard.

    I think the idea has serious potential.

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  1. […] earlier posts (and more particularly some comments that have been left) on the current incarnation. When I wrote this post, I didn’t respond to the comments, and I just remembered the comments as critical of the […]

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