In an effort to save money and with inflation being high, many people are discovering the art of bartering, which is trading your talents or goods with another person’s.
“Bartering skills or goods is one of the oldest and widely circulated currencies,” Emily Irwin, head of advice relations at Wells Fargo Bank, said in an email.
Read on to learn how to develop your talents, find interested parties to barter with and reap the benefits of saving money through sweat equity.
1. Assess Your Skill Set
To begin, Irwin suggested taking an inventory of your time, talents, skills and interests to help you focus on prioritizing the goods or services you can offer to barter.
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2. Understand Your Value
Do your research so you can understand the value of your goods or services. “Even though cash isn’t exchanging hands, you want to be sure that you’re offering — and receiving — a fair exchange,” Irwin said.
3. Present Proof of Your Talent
Although you don’t necessarily need paid previous experience to launch this type of endeavor, Irwin said, you may have greater initial success if you have a portfolio or sample to share with those whom you wish to barter.
4. Realize Your Bandwidth
Create a timeline for when your services will be available, and be cognizant of how many barters you can handle, Irwin said.
“While there may be instances when bartering is a one-and-done (for example, wedding photography), if you’re anticipating a longer-term arrangement, I would suggest embarking on a trial run to ensure that there aren’t any unexpected surprises,” she added.
5. Set Expectations
You may find that one person’s perception of small home renovations , for example, may not be aligned with yours. Irwin suggested creating a barter agreement in writing, especially if it involves big-ticket items.
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“Be specific about the skills each of you are contributing, any guidelines — like trimming all the trees or just the maple tree in the front yard — and a timeline,” she said.
6. Advertise That You Want to Barter
There are several ways to get the word out that you’re interested in bartering.
“Social media is a great place to start advertising,” Irwin said. She also said not to overlook word of mouth.
And, depending on what you’re hoping to accomplish, you may want to advertise your skills through real estate agents, schools or houses of worship.
Another idea, Irwin said, is to check if your local library or community center would let you post an advertisement.
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Understand the Scope of Bartering
Bartering can be a good way to access services when money is tight.
“Bartering can also be more flexible; you don’t have to put the exact number of hours and you may save time because you don’t have to invoice someone and wait for payment,” Amy Morin, a psychotherapist and author of “13 Things Mentally Strong People Don’t Do,” said in an email.
On the flip side, a potential downside is that it can be tough to find a trade partner.
“Many people don’t create a clear contract so miscommunication can be an issue. There can also be an issue if one party isn’t satisfied with their service or the products received,” Morin said.
It’s important to understand that bartering isn’t always a win-win.
“One person may not be satisfied with the other person’s work. Or one person may think they put in more effort,” Morin said. “And you can’t get a refund if you aren’t satisfied.”
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Bartering: What It Is and How to Do It originally appeared on usnews.com
