How to Swap, Barter or Trade in a Recession to Save Money

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By Jami Delgado
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Swap, Barter or Trade to Save Money

Doing a swap, barter or trade is becoming increasingly popular as the recession deepens and people look for more ways to save money. If you have unwanted items around the house, or can offer a service, this option may be a great way to spend less money. It's shown throughout history that when the economy is down bartering items increases. Why is this? There are several benefits to doing a swap, barter or trade of items or services over a purchase. For one, you don't need credit to do it. You can still get what you need or want without spending any cash by finding others that are like minded. Probably one of the largest benefits of doing a swap, barter or trade is tax avoidance. As long as the items or services are of equal value, no income tax is due on them. This article will discuss how you can swap, barter or trade items or services and start saving money.

Difficulty: Moderate

Instructions

Step 1

Make a list of items around your house or yard that you no longer need and may hold value for someone else. These need not be in-demand items. You can barter just about anything if you can find the person who is looking for it. Consider grouping like items. You may barter items on their own or in groups. Do you have used DVDs or books? Go through your closets and garage to find items you've forgotten about and probably aren't missing.
Step 2

Make a list of services you could provide for a swap, barter or trade. This is in case the person who has the item or service you need does not want any items you have to offer. A list of services could include handiwork, cleaning, yard work, bookkeeping, babysitting,etc. Think of your hobbies and if they could be of value to someone else.
Step 3

Make a list of items and services you are in need of. This does not need to be an exhaustive list. Keep it around and add to it as necessary. Think of things that you're likely to find for swap, barter, or trade, or items that you don't have the money for.
Step 4

Find people to do your trade with. There are several online barter sites that specialize in bartering. See the resources section below for a few. Other great ideas are garage and yard sales or groups that you're associated with such as PTA, church, business associates, friends and family or town council. Perhaps consider starting a local bartering association where all who are interested can come together and create/find listings.
Step 5

Create a listing. Whether online or on a bulletin board of sorts, make an ad being sure that you're specific about the barter items. Be as detailed as possible. Describe the condition, estimated value, and other pertinent details. Include a photo if possible. Also include what items or services you are looking for in exchange.
Step 6

Host a swap party with local friends and family. Each member brings a bag or bin of clothing that is no longer needed or wanted. Everyone picks through the clothing and takes what they want. Any leftover items can be donated to goodwill or freecycled. This idea is especially popular for children clothes, but is also a fun way to get 'new to you' clothes for the moms.

Comments

DrJonRich said

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on 10/26/2009 "As long as the items or services are of equal value, no income tax is due on them." Not according to the IRS -- they indicate that taxes must be paid on the fair market value of goods or services received in a barter: http://www.irs.gov/taxtopics/tc420.html