My two adult daughters and I have opened our very own money lending institution. We no longer need to use credit cards and repayments are interest free! We were always borrowing money from each other, until I came up with the idea of opening a savings account. Each week we would all deposit $5.00 (a total of $20 being put away each week). This became our lending fund that we could borrow from in an emergency. The rules are, we had to allow the money to accumulate to $500 before we allowed ourselves to borrow. Once we have borrowed, we pay back at the rate of $10 per week, plus a $5.00 donation for every $100 borrowed,
interest free. This system works a treat! Our funds grow by $20 each week and we keep track of what we owe as we trust each other. We try and keep a balance of $500 minimum in our account and sometimes we have over $2000 just waiting for an emergency!
[question posted by kathy77]
responses and comments:
Kathy this sounds like a very good Idea and I had decided that once everything is sorted I will be starting to put some money in a different account to. It might just be a small amount every Months but I will be doing it. [gabs8513]
What a great idea. It's pretty cool that you and your daughters can do this. I'm saving money too. I started putting $20 a week away into a "Christmas Fund".. I'm hoping by the time Christmas comes around I'll have enough in there to do all my shopping- I don't have any sisters to do the type of thing you are doing- But it's a great system! Glad it's working out for you guys! [KrisNY]
Kathy this is a great idea, never thought of doing something like this. I'm going to see about getting it going in our family with my sisters - we're all always borrowing from Mom & Step-dad, they love helping but you know at my age you really hate running to Mommy. [byfaithonly]
Thanks for opening up my mind. I have a good idea of saving like that. At least, in some ways, I could learn to save and earn as well. Thanks for a great idea [kyuttytzeh]
hey kathy super idea to save money. I normally spend all my money once i get paid and end of the month i will borrow from friends. Now i have decided to open a separate account to save money in the month begining and use it end of the month. Thanks lol [sumi123]
I really wish I could have an emergency fund. However right now I'd be into it a lot. I just got front brakes on my car and other things with my car needs fixed. Like the back brakes, the Electrical and the cd player. I don't have any credit cards which I guess is a good thing. Since I don't have that on my bills. I do have many bills to pay though. I want to open a savings account soon. I will probably do this after I get a job. So, I can put money away for the cats spaying, Christmas fund and a vacation fund for the next time I go to Wisconsin. I plan to go to the mall in Milwaukee on a shopping spree. $20 a week can add up pretty quickly. I think you made a good system. I hope to go by that system soon. Sounds like the system works wonderfully and it's fairly simple to remember. Good job on making a wonderful savings thing for the whole family. [pebbles_cubbie]
that is really a great idea and makes saving for a rainy day easy. I have been saving all the money I make online from mylot,surveys,etc. and putting it into a high interest savings account. it`s really starting to add up. [sandie61]
hey!!! thats a good one my friend., instead of borrowing from others., why not with your family member., much usefull... and i like the way you done it with your daugthers... thanks friend... for the information!!! [jelaichie]
that's a great Idea kathy. I know my sister in law is always borrowing from us and it's a borrow give us back and borrow it back again before the end of the month. So this is is a good idea of how to save and help at the same time... Great Idea and thanks for sharing it. [cherbe]
Hi Cherbe, I am happy that I sent this idea out to you as it really looked like you needed some help for your sister in law and hopefully this will help. [kathy77]
Sounds like a great idea and hopefully there are no multiple emergency situation, in our house, things always go wrong in groups. Just one question - you and your 2 daughters = 3 people. 3 x 5 = 15 a week. How did u get $20 out of it. [Debs_place]
brilliant Idea, it is so hard for some people to manage money , My youngest son has never had to manage his own money but he has applied for a place of his own to live , I am now teaching him to budget and he is finding it quite hard . never new what things cost before , he does now lol xx [weemam]
You're not the only one that has an emergency fund. I also have one, and it's my "Red Alert Life Funds" that was given to me by my late cousin Lonzo, who died about 2 years ago. Ever since then I swore not to spend any of the money he left me unless it was a very, VERY serious, and extreme emergency. I can't spend one cent on it unless it was a life or death situation, and I still have that money today. It's $35-47 dollars, and it isn't much, but this will help me one day if I run into any trouble that my life depends on my emergency money. [DuoMaxwell]