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.