Wanna Trade? Barter Yourself to Financial Freedom

Trading what you already have or can do for the things you need is one of the most satisfying ways of being frugal there is. Bartering, swapping, whatever you call it, is as simple as taking someone's kids for an afternoon in exchange for them taking yours next week, or as complicated as an exchange by big businesses, like Coca Cola, and General Motors.

If you don't have goods to trade, you can provide a service, whether it's needlework, baking cakes, digging ditches, or fixing brakes. Anything you can do can be bartered.

If you've never traded goods or services before, here's how to start:

List everything you do that could possibly be traded, then list goods, from a box of rags to a house. Next, list the things you need or want.

Make another list of sources which can provide those things, and begin to match them up. Don't be shy about asking businesses and services, doctors, dentists, mechanics and so on. You'll never know unless you ask.

Some do's and don't's:

* Don't forget to claim your trade as income on your taxes. The IRS considers anything you acquire as taxable income.
*Make the terms of the trade clear. Don't trade on the premise that 'we'll work it out later', even with the best of friends. Somebody will be, or feel, taken advantage of.
*Decide right away that if the other person's time, goods or services are not up to par, you won't make an issue of it. You simply decide to not trade with that person again. In trading, you really have no rights.
*Do state (and abide by) a time limit. Don't agree to wait too long for the other person. If they don't respect your needs, you shouldn't be trading with them.
*Do look for unexpected, unusual pluses to trading with others.
*Trade with those with whom you agree in taste, lifestyle and morals. You'll have more of a chance of satisfaction.
*Be careful of the big bartering companies. Some charge a one time fee to join, as well as taking a cut of each barter exchange. It's big business with another name, and will cut into your savings.

Three-way (or more) barters can work very well. It goes like this:

I have a tree the wind blew down, but I don't need firewood, I need my car worked on. You don't need the firewood, but you know someone who does. Unfortunately that person doesn't do mechanic work....but you do. You need somewhere for a guest to stay for a week. You do the mechanic work for me, I give the tree to your friend, and your friend puts up your guest. Simple. And very frugal.