Sharing wealth...

Man of Honour
Joined
28 Nov 2007
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Surely the only way to make this worthwhile would be to make it unfair. So each time there is a winner and you are gambling an amount you can afford to throw away in the hope that it is you.
 
Soldato
Joined
30 Sep 2005
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16,526
I think my system is better as people can get £5k now or later, depending on their needs.

Sound like it might catch on?

Sounds like it could be open to all kinds of abuse, like selling the interest block on to another lender at a cheaper rate. That could then in turn be sold on, propped up against an asset.
Who's to say that then won't be sold on again, and grouped together with other blocks of interest and assets at an ever cheaper rate. Sounds like it could get really messy.
 
Caporegime
Joined
21 Jun 2006
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38,372
exactly.

all the stupid people at my previous work did this and called it a "manoj". basically every payday 12 people get together and stick £100 in an envelope, then whoever's turn it is gets to keep the envelope. so rather than sticking £100 in a savings account and getting interest, etc. they just pay £100 into an envelope every month.

they ran 2 side by side. one was for £50 a month and some people were in both. so paying £150 a month. £100 into 1 envelope and £50 into the other.

it's basically for stupid people who are bad at saving.

it was great when 1 guy involved in it basically quit work after he got paid out. they were all up in arms.

It's called a menage in scots. the wife does one in work. each month everyone puts in a tenner and each month one person gets the pot of money.

see above
 
Caporegime
Joined
29 Jan 2008
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58,898
Sounds like it could be open to all kinds of abuse, like selling the interest block on to another lender at a cheaper rate. That could then in turn be sold on, propped up against an asset.
Who's to say that then won't be sold on again, and grouped together with other blocks of interest and assets at an ever cheaper rate. Sounds like it could get really messy.

slightly confused attempt to describe MBSs

you're missing the synthetic CDOs though - MBSs alone weren't going to do too much damage
 
Soldato
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Aquilonem Londinensi
At the very start everyone draws a month out of the hat. Once everyone has won it once then it starts again.

I get why people do this, to get a large pot of money in one go. I just find it bonkers and a waste of effort for something you can do on your own. It's this crazy scheme called saving :p

E: to add the discussion and in case anyone who banks with Nationwide doesn't know, their iPhone/Android app has an "impulse saver" feature. I've used it for multiple things, like when giving up smoking or when I get annoyed at £3 coffee. When you pass up a temptation you slip the amount you saved in that instant to a savings account. Other banks/building societies might offer simiar, IDK
 
Soldato
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25 Jul 2010
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Worcestershire
It's like the opposite of saving. Saving is like forgoing money now so that you have a lump at the end. Only worthwhile if a) you get interest above inflation b) you have no better way to invest or c) you can't trust yourself in the meantime.

This is like taking a chance to get the money earlier. Which may be a good thing if you can invest it. So it's like a chance to get an interest free loan. But I suspect most people partaking in these workplace schemes will be heading to the pub or spending it on a holiday.
 
Associate
Joined
6 Apr 2006
Posts
212
This kind of scheme is very common in the South Asian community - my parents refer to it as a "kameti"

I think I'm one of the few members of family that doesn't partake in one of these. I remember drawing up a spreadsheet for my dad, though, so he could keep track of payments that he had made into one.

The way it worked, as I recall it, is that x number of people each put in y amount of money every z weeks/months. Each week/month the total amount of money divided by two and each half is given to a certain member of the group. The scheme goes on like this until all members have received one payment of half of the total amount, and then resumes in reverse order. So whoever recieved their first "half-payment" last, recieves their second payment first (if that makes sense).

Need to have a very trustworthy person looking after the money, as well as being able to ensure that everyone contributes when they should.
 
Soldato
Joined
25 Jul 2010
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4,071
Location
Worcestershire
This kind of scheme is very common in the South Asian community - my parents refer to it as a "kameti"

I think I'm one of the few members of family that doesn't partake in one of these. I remember drawing up a spreadsheet for my dad, though, so he could keep track of payments that he had made into one.

The way it worked, as I recall it, is that x number of people each put in y amount of money every z weeks/months. Each week/month the total amount of money divided by two and each half is given to a certain member of the group. The scheme goes on like this until all members have received one payment of half of the total amount, and then resumes in reverse order. So whoever recieved their first "half-payment" last, recieves their second payment first (if that makes sense).

Need to have a very trustworthy person looking after the money, as well as being able to ensure that everyone contributes when they should.
This is the worst yet. Sheer lunacy
 
Caporegime
Joined
21 Jun 2006
Posts
38,372
Need to have a very trustworthy person looking after the money, as well as being able to ensure that everyone contributes when they should.

this is why it is flawed. why not stick the money in a saving account instead?

what happens if one of them dies? leaves the country? or loses their job? or simply decides you know what **** you?

all these schemes do is create an avenue for you to potentially lose money and create arguments and fights. why do this to yourself?
 
Caporegime
Joined
21 Jun 2006
Posts
38,372
yeah thats insane and utterly pointless unless you super crap at saving money.

pretty much what i said before. all the people at my old work involved in one were idiots so it proves the point that it's a stupid idea.

one of them for example lived at home with their mum yet still managed to have half their annual salary on credit cards as well as a car finance loan.

also to OP sharing wealth is about giving money away. e.g. I have £5 million in the bank. I'll give £10K to 10 people. Not giving random people a tenner then they all give it back to you 3 years later.
 
Caporegime
Joined
29 Jan 2008
Posts
58,898
We'll agree to disagree then, as even the best financial minds struggle with it (and make of that what you will), but if you wanna send Selena Gomez over to explain it to me, feel free ;)

Well no, you're just wrong. They're not particularly difficult to understand and no 'the best' financial minds don't struggle to understand how they work. That isn't to say that there weren't flaws when modelling them - which is a bit of a different argument.
 
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