Why Use Barter Instead of Cash?

Barter offers several advantages over using cash. With trading, you can obtain items you need without depleting your available cash. For instance, let’s say you no longer use a pair of skis, a treadmill, or perhaps you’ve upgraded to a new microwave, but your old one is still in good condition. You might desire an extra TV for your workout room, which you no longer use for exercising. Through bartering, you can search for someone who has what you want and determine if you have something they need, all without touching your paycheck. This forms the foundation of barter—trading unneeded items for something you actually need or want.

Bartering can also be an effective way to increase your net worth without investing a lot of time or labor. Consider this scenario: if you earn $10 per hour and work a 40-hour week, theoretically, you would increase your net worth by $400. However, after accounting for taxes and other deductions, you might be left with around $320 from your hard-earned 40 hours. In contrast, bartering is not tied to a dollar value per unit of time exchange and allows you to utilize your spare time for activities like browsing sites like Craigslist on your phone while sitting on the couch, waiting at the dentist’s office, or even in the bathroom.