Money Magazine

Money clubs aren't just about stocks
A new kind of self-help group won't make you rich, but it may make you smarter about your finances.

By Jean Chatzky
June 16, 2005

"...This new kind of financial support group helps members manage money more wisely or tackle specific goals, from saving more to paying down debt to planning an estate.

Unlike traditional investing clubs, which get together to pool assets, money clubs assemble to pool ideas. The payoff lies in becoming more informed about how to reach your goals -- and in being nudged to get off your duff to do something to get there.

Money clubs are still no rival in number for the nearly 20,000 investing clubs created in the Beardstown Ladies tradition. But membership in stock-picking groups has waned since the 2000 crash, while the uncertain economic climate has fostered money clubs' growth.

"You get rid of a certain anxiety by realizing you're not alone," says Olivia Mellan, a Washington, D.C. psychotherapist and author who specializes in money issues.

Some clubs are organized around the philosophy of a particular guru, such as "Finish Rich" author David Bach. Others cater to a demographic group, as do the 125 affiliated with the Women's Institute for Financial Education, or focus on one topic, like entrepreneurship.

Some clubs cost no more than buying the occasional book or cooking the occasional casserole. Others carry modest fees, while some charge big bucks and offer professional coaching and moderators. Obviously, you'll want to check those out thoroughly.

The clubs' relative scarcity means your best chance of finding a group that's right for you is to start one yourself. But while simply inviting friends to meet at the library or your house may work for a book club, it won't here. When money is concerned, you need to manage more actively. See the below for help in recruiting and getting started, then follow these rules..."

"...Keys to running a successful group

They vary, of course, but these are the most important, according to Scott Heiferman, co-founder of Meetup.com.

1. Pick a leader. Or rotate leadership chores, rather than running free-form.

2. Meet once a month. More than that is a burden; less and people lose interest.

3. Have at least 10 members... Small groups tend to be socially awkward. Larger groups have higher retention.

4. ...But fewer than 20. Get above a score and it's no longer a club, it's a cocktail party.

Web resources: How to break into the club scene

Whether you're interested in starting a money club or joining an established group in your area, the Internet is the best place to launch your quest. The following sites will help get you going.

* Meetup.com This site helps you find existing clubs, or matches you with prospective members if you would rather start your own. Use keywords such as "money," "debt" and "finish rich" to search for local groups that share your interests..."

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