Save Your Money - Start a Borrowing Group!

A borrowing group is a circle of friends or relatives who have banded together to share resources and collectively save money. For instance, if I have a pool, you have a roto-tiller, and our neighbor has a grill we can get together and agree that if we each let the others use our possessions (according to a predetermined set of guidelines) we can borrow each others items as needed. In essence, we ALL have a pool, a roto-tiller and a grill we can use. Call it "possession timeshares" if you will. So why buy new? Borrow instead!

Here are the basic steps for setting up your own borrowing circle:

1. 
   
2. Get together a list of like minded individuals, ideally centrally located to each other, that are willing to pitch in an item to lend.
3. Make a list of items each person would be willing to lend as well as items they may be looking to borrow - a "lend list" and a "wish list" if you will. Often looking at another members wish list will remind someone that they have a staple gun they haven't used in years but would be willing to offer for trading!
4. Determine what your particular groups guidelines are going to be. Understand and agree that as your group evolves you will need to update your guidelines to address situations that arise. You may also come to a point where you will need to cap the number of members in your group or create a spin off group.
5. Get together and hammer out the details of your group. Things to address include time limits for borrowing items, the number of items a member can borrow at a time, what to do if an item is damaged lost or stolen, when and how often group meetings will be held, what to do if a member borrows but is never able to lend when asked, whether you will charge a token membership fee or dues to cover the cost of meetings, etc.
6. Group leaders may be elected or appointed (or may appoint themselves when they are the original members of the group!) and a political infrastructure as complex or simple as you desire may be implemented. Positions may include a group secretary, Treasurer, President, Vice President, and Event Coordinator, etc.

The important thing to remember is that this can be a beneficial experience for all involved if you all realize that you are dealing with fallible humans who may disagree from time to time. Take that into consideration when you admit members to your group and you decide on the first few possessions of yours to offer fellow members.

A well run group can save its members hundreds, if not thousands, of dollars in the course of a year! Start small, go slowly, and enjoy the financial benefits as well as the many friendships you will make along the way!

Colleen Mitchell

Single mother of two who shares her many years of experience learning to live within her means on her blog "Uber frugal" - http://www.uberfrugal.wordpress.com