Collaborate: Save Money by Tapping Into Your Network

The gas squeeze is officially on. I recently read an article about gas prices going up and maybe hitting $4.00 per gallon before they sink under the $3.00 mark again. Things are so bad that I actually found myself reminiscing with my boss about gas costing only $0.79 per gallon when I graduated high school. You could fill up with a ten spot and still have money left over for McDonalds. Unfortunately, those days are gone and I’m certain we’ll never see them again so you might as well plan on trading in your car for a hybrid.

With the recession about to hit us (despite what the politicians say), it is important that we get a grip on our expenses. The pooling of resources has always been a good way to ensure that everyone in the community survives harsh times as well as experience a better quality of life. Here are seven ways that you and your network of friends, family and neighbors can come together to save money, increase buying power and successfully surf the rough ecomonic waves.

1. Practice Sou-Sou

Sou-Sou can best be described as the act of investing in each other. This is an old African custom where a group of people get together and contribute a set amount of money to a pot over a set amount of time. At the end of that time, one person in the group is awarded the money. Then the process starts over again with another person in the group getting the money. This would continue on until everyone in the group has been awarded the money at least once.

For example, you and a friend contribute $20 to a pot for five weeks. At the end of five weeks there is $200 in the pot and you get all of that money. You do this again for another five weeks at the end of which your friend would get the money. The main benefit of doing this is that you can quickly raise interest fee capital for big ticket items such as starting a business or buying a home. The one major drawback, however, is that if anyone defaults on their obligation to contribute that can cause major problems within the group. So be sure to only practice this custom with people you trust.

2. Buy in bulk

Food is major expense that you can alleviated by shopping smart. In addition to using coupons and shopping the sale papers, you can also save by buying in bulk at stores such as Costco and Sam’s Club. But getting a 48-can case of peas for a single or small household can seem like overkill.

The solution, though, is just a phone call away. Tap your network for others who would be willing to do some group shopping. Pool your money together for common household staples such as toilet paper or canned goods and then divy up the groceries on the way home.

3. Barter in talent

Before there was money, people exchanged goods and services through the act of bartering. For instance, a carpenter would build a house in exchange for a small herd of cows or some such. It would be worth it to look for someone willing to exchange in services rather than cold hard cash. Websites such as BizXchange and Barter Your Services make it easy to find likeminded indiviuals practicing in this form of trade.

5. Carpool

Carpooling isn’t just for busy commuters. When running errands consider getting together with others going to the same or nearby places. You can split the cost of gas, ride in the carpool lane and high-five each other for finding that sweet parking spot at the mall.

If you are a communter looking to get in on these carpool benefits check out eRideshare or iCarpool find others going your way.

6. Participate in a rotating potluck

Foster a sense of community and lower your food bill by having a rotating potluck. One night a week, all of the participating families will gather together one person’s house. Each family would contribute a dish (making sure there is enough for everyone) and all would share in good times and good food. The following week’s dinner would be held at a different family’s house until everyone had a chance to play host.

To make sure there is a good range of food available, you can have a sign up sheet with each family being responsible for a part of the meal such as the meat or the vegetables. To spice things up a bit, you could even have themed potlucks such as Mexican or Italian food.

7. Exchange Excess Items

Do you have clothes you don’t wear anymore? Canned food you bought but no one in your household will touch? Have an exchange sale. This is like having a garage sale except you are not selling anything. Everyone in the community contributes their unwanted items and and in exchange they can take from the pile things they want or need. At the end of the day, anything left over can be donated to the local Salvation Army.

It is true what they say; two heads are better than one. By working together we can all have a better life and a brighter future.