Will Wash Windows For Fire Wood

23Oct10

 

from wideshut.co.uk/intro-to-money-and-its-history-before-the-new-world-order/

 

As more and more people have less money to spend, the act of bartering has become popular…again.  Just yesterday I saw a nice camera for sale on Craigslist.  I didn’t have all the $$ to buy it and actually found myself offering my netbook for it.  (*sad face* He wasn’t interested.) Nonetheless, bartering is definitely making a come-back!  Just check out all the different offers like the one I saw today on Craigslist…”Will wash windows for firewood”!

Bartering was the main trade system dating back many centuries ago.  Nonetheless, with the creation of the monetary system, money became a primary means of exchange.  Thus, not having to trade, people began to buy and sell the things they needed and wanted.  This is true especially in a good economy as people have more purchasing power.

But just like back then, in an economy when people do not have much money, bartering has become an alternative to getting the things we need and want.  Keep in mind the following when deciding if bartering is worth your while:

  • Bartering is considered taxable income by the IRS.  Penalties will apply if not reported.
  • Difficult to renegotiate the agreement.  For example, if you raise rates for your paying clients, it’s not likely you can do the same barter client(s).
  • What you have to offer must be wanted by someone else who has what you want.  Thus, in a fair barter exchange, both parties feel as if they are getting something of value.

Have you ever bartered?  Why or why not?

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