Day 3 - Cost Sharing

Cost Sharing is a financial practice as old as civilization. It is a great way to reduce spending and save money without always having to cut back on things you may enjoy. People practice cost sharing many ways.

An example of an old informal cost sharing method that still exists today is a Sou-Sou Savings Club.

A sou-sou (also spelled sou sou, su-su or susu) is an informal rotating savings club, where a group of people get together and contribute an equal amount of money into a fund weekly, bi-weekly or monthly. The total pool, also known as a hand, is then paid to one member of the club on a previously agreed-on schedule. The pool rotates until all members have received their share.
— Essence Magazine

Everything You Ever Wanted to Know About Those Sou-Sou Savings Clubs African and Caribbean Women Love

A brief history of the sou-sou money savings club and a breakdown of why African and Carribean women use them often.

Many people practice cost sharing in more formal settings today. Examples include:

Family Phone Plans
They are often cheaper than having multiple individual plans and offer the same level of service.

Having Roommates
The cost of living increases every year and in some places much faster than average. Having a roommate to share expenses with can bring down costs significantly.

Carpooling
Sharing commuting costs is an old practice but new technologies such as ride sharing services have adopted them. When you share a ride with another passenger it is always cheaper than when you are the only passenger.

Cost sharing can be a great way to tackle debt. A few years ago there was an inspirational story of 4 sisters who did just that.

 

How 4 Sisters Erased $182K Debt in 18 Months

The Barrientos sisters were a close-knit family confronting a major problem nearly five years ago. The four sisters - Noemi, 34, Damaris, 33, Ana, 32, and Rufina, 30 - from Dallas, Texas, had a combined income of $106,00. The sisters' combined debt had ballooned to $182,000, thanks to student...


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