by Pat Fox

Created on: October 10, 2008   Last Updated: December 15, 2009

As the world struggles with a faltering global economy, individuals at home are looking for ways to cut back on expenses. For many of us, our first approach to this challenge is to look at our lives and ask "What can I live without?" and we start cutting back on things we consider to be optional. However, there are some other questions we could ask that will help us reduce our expenses and may enable us to give up less. As we look at the skills and things we have, we need to be asking "What is this worth to someone else?" and "Could we trade?"

The art of bartering was prominent during the Depression when very few people had cash in their pockets, but could trade something they had for something they needed. For example, someone with firewood could trade with a farmer for food. Both parties received value and no cash would change hands.

Today we are used to getting what we need by simply paying for it either with cash or, more frequently, with a credit card which adds to our debt. If we could bring back the art of bartering, we just might be able to reduce our individual debt and worry less about the shrinking cash in our pockets. Here are some examples of bartering that could work today.

On a personal, neighbor-to-neighbor level, think about trading a service. Mow a lawn. Shovel a driveway. Give a neighbor a ride. Pick up someone else's dry-cleaning. These could be traded for a hot cooked meal, fresh baked bread, firewood for heat, or gas for your car.

On a bigger scale we need to consider bartering for business services. If you have a vacation home, barter with your plumber, lawyer, doctor, or electrician for a week at your place. If you are handy, trade your services with a small business for something you need. Install added insulation in the local bookstore in exchange for books for your children. Help install solar panels in exchange for piano lessons. Use your carpentry skills to help build out an office space in exchange for service on your computer. The possibilities are endless.

The fundamental foundation of successful bartering is to understand what you really need and to understand what the person you are trading with really needs. Once these needs are understood, you can match what you each have and make a trade that leaves everyone feeling good.

We all have skills of value and things we could trade. Look around the house at things you have and look at the things you do every day. Then think about what you need. Whether it is a professional service or a tangible item such as clothes for your children, if you take a creative approach you are very likely to be able to get what you need simply by trading what you have.

Learn more about this author, Pat Fox.
Click here to send this author comments or questions.