Call it a fund collection, a savings’ squad, a money pool is simply a way to make savings with a group of people. You and your friends pool together a contribution, for an agreed period until you collect the total amount you need.
For example, if you have a holiday abroad on your mind and you want to gather enough for your trip, you’d divide the total balance by the number of pool members and all contribute an agreed amount until you have enough to book!
You could have a pool of just a few people or a whole team making up a money pool; there’s no limit.
At Collection Pot, as we specialise in fund collection, building a money pool is something we know about! Here are some tips gathered from our users.
The reason online fund collections works so well is that it takes the pressure off one person. Back in the dark days before the joys of online commerce and fund-collecting, if you wanted to collect for a getaway, a holiday cottage or a stag party, one person would have to take charge and could often be left holding the bill – or an envelope that was lacking in notes.
Now building a money pool with friends can all be done online, but it’s still wise to create an outline of how much you are raising, by when, and how to do it. Also, you should have clear rules that ensure that no one person is the driving force behind the collection and everyone has a responsibility.
Fund collection doesn’t have to involve a series of increasingly tense WhatsApp messages demanding payment. If you want to enjoy the trip or activity you have planned, it’s a good idea not to be known as ‘the debt collector’. It can kill the mood and seriously decrease your chances of being bought a drink when you get there.
When you create a money pool (which, of course, we recommend you do online!) instead of deadlines and hard-line tactics, make it fun. Leave fun messages when you add your contribution and personalise your online collection as much as possible with a nice image. If it’s a holiday, gather up some local recommendations of bars or pubs. Are you saving for a big trip before your mate’s wedding? You’ll need a photo of the groom on his 6th birthday having a tantrum to share with your money pool friends. Make the notifications and reminders less about the total balance and make your money pool with friends more of the part of the fun.
It’s a great idea if every friend can pay their balance bang on time every month, but we are all human. Rent increases; a month packed with birthdays, an unexpected bill- if you are in a money pool with friends, it’s essential to try and have monthly pool amounts that are feasible for everyone. It’s also a good idea that there is no naming and shaming if someone can’t make their payment that month, with a view that it will be made right before the end date.
The best collections have a medium to a long-term period for a large balance and a short time frame for a smaller balance, but for those big-ticket dreams, it’s a marathon, not a sprint!
The money pool can live in the background, slowly growing in size, but it’s also a great idea to grow proactively!
If you’re all at the pub and are debating that last drink- why not all put the funds of that last drink (£5/£7/£14 – depending on how close to the capital you are) – into your online money pool? It’s little moments like this that bring the experience of fund collection to life.
Your money pool can be used in all sorts of ways. If someone has a new pay rise, they might choose to pop in some extra funds. Someone lost a client or had a bad week? Drawdown the balance and treat them to something from the collective pot. A money pool doesn’t have to sit in isolation from your lives but can be alongside you.
We LOVE helping people create group collections with friends, And people have collected pots for weddings, holidays, long overdue get-togethers and much more. Join us today and create your free Collection Pot with us!