Saving Club - Best Way To Secure A Small Emergency Fund Interest Free

How many people have ever though of the idea of forming a saving club? Currently, with all these huge financial burdens that have been placed on the average American due to job loss, wage cuts, price increases and so on, there is a need for careful saving, budgeting, cut-backs and creativity. In tough economic times like these, we all could benefit from different saving ideas and ways of securing a small emergency fund.

There is one idea in particular that I would like to share with you in this hub. This idea I am about to share with you, some of you might be well aware of it. However, for those who don't, here is an opportunity to secure a small emergency loan without ever having to set foot in the bank. This method I shall refer to as "Saving Club".

Here is how this particular saving method works : Say you need a couple hundred dollars for an emergency, or even to buy some household items, to make a small down payment on an item, to repair your car etc. Providing you have a job and are taking home a weekly or bi-weekly salary, your problem can be easily solved.

This is what you need to do: talk to your co-workers. For example, say there are 20 people or more working at your place of employment. Ask some of your co-workers how do they feel about joining a saving club. Suggest to them that you all should put aside say $50 per week. If 10 people agree, for the first week the amount collected would be $500. This amount would be given to person number 1. The second week's amount of $500 would be given to person number 2. Since there are 10 persons in this saving group, at the end of 10 weeks, person number 10 would be the last and final person to collect his/her sum of $500. You all can decide amongst yourselves who will be first, second, third in line etc.

Of course, you need one responsible person to be in charge of doing the collection and distribution of the cash (a banker). This method of generating some cash can then be repeated several times for the year. In fact, this is something that can be done within your own home and also amongst family members and friends.

Conclusion

The bottom line is, not everyone can come up with the amount of cash he/she may need to take care of an emergency or purchase some of the things that they might need immediately. Also, to secure a loan, especially in tough times is not that easy; the bank may require more than the ordinary from you as collateral, or your credit might not be in top shape. However, if you have a source of income you don't have to ever set foot in a bank. Saving Club is definitely a good way of securing a small loan. Another good thing about this unique method of securing some emergency funds is that you don't have to pay any interest on the money you receive. Just be considerate of others in the club and repay your money on time so that everyone can enjoy the benefit of this form of saving on time each week.

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