Make Saving a Black Thing: How to Start Saving Now!

A recent study reveals why black families need to stop shopping and start saving. According to a study conducted by Brandeis University's Institute on Assets and Social Policy, white families stocked up on an average of $95,000 more in assets than their black counterparts over a 23 year period.

If this disheartening news feels like sucker punch to the gut, then here's the round house kick to the jaw: Blacks are still earning less money but paying more -- for loans -- than whites. What does that mean? Studies show the average black household makes almost $20,000 less than the median white household . Additionally, blacks still get stuck with higher interests than white borrowers – which really hurts when it comes to big ticket items, such as home purchases. The net result of these two trends is that blacks tend to have less money for large purchases and emergencies, but then it costs us more to get the capital we need to buy homes and takes care care of problems.

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Bartering's Big Comeback

Don't believe you have anything to barter with? Think again.

Do you have items around the house that are in good condition but you no longer want or need (here's a great way to get rid of unwanted gifts)? Do your friends ever compliment you on something you do -- like your ability to bake, to plan perfect parties or your green thumb? Do you have any hobbies that you can teach someone else?

If you answered yes to any of these questions, you have something to barter with! If you can babysit, mow lawns, bake, pull weeds, run errands, knit, etc. you have something other people want.

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Barterings Big Comeback

Is Bartering Right for You?

Bartering, the trading of goods and services with no cash changing hands, is making a big comeback in this struggling economy. Craigslist.org has seen a 100% increase in activity on its bartering boards over the last year. Bartering can be fun and profitable because both sides of the "trade" are getting what they want, again for NO cash! So how does it work and is it right for you? Continue clicking through our gallery to find out.

Barterings Big Comeback

Bartering is as simple as trading a skill or item you have for something you want.

For example, if you are a painter, you offer a carpenter a bedroom paint job in exchange for him fixing your porch steps. Or you offer to design a website for a local restaurant in exchange for a few dinners there with your spouse. Or trade your legal services for a new computer ... and on and on.

Best yet, ANYONE can barter ... you don't need to own a business or have a specialized skill.

Barterings Big Comeback

It's estimated that 60% of the companies listed on the New York Stock Exchange participate in some kind of bartering

Bartering is gaining popularity with small businesses, too. If you have a skill or a product that people are paying for everyday, why not consider exchanging that skill for things that you need, rather than cash?

Bartering can also be a great way in tough times to get your name out there and meet new clients.

Barterings Big Comeback

So, how do you get started?

Well, there are several ways to barter. Start by reaching out to people you know. Contact friends, neighbors, colleagues, local businesses you use and so on. Tell them what you have to offer and ask if they are interested in bartering.

There are also local bartering clubs popping up all over that bring people together to swap. Check your newspaper, community centers, postings at school or the grocery store.

Barterings Big Comeback

For a broader reach, try an online bartering site.

Dozens of sites have sprung up to help make bartering matches. It's easy! On such sites as Craigslist.com, BarterBucks.com, BarterBee.com, HomeExchange.com, U-exchange.com, swapstyle.com, swapthing.com and many others -- you merely list what you have available to barter.

Most of the exchanges are made online ... although there is even a bricks and mortar store in New York City, called The Free Store that facilitates bartering transactions.

Barterings Big Comeback

Join a barter "bank."

On some barter sites, you swap your item or service directly with another person. Others act more like a network. Every item or service you offer to another member earns you a point or credit value.

You can then use those points to buy items and services from any other member in the network. So if Joe needs the tennis lessons you are offering, but doesn't have anything you want in exchange, that's OK. You can use the points you earn from teaching Joe tennis to "buy" some Web site design from Sue.

Barterings Big Comeback

One word of caution...

Only do business with established barter Web sites that are highly rated by its users and keep your personal information private and secure.

Plus, one note courtesy of Uncle Sam ... The IRS requires people/companies who barter to report the fair market value of the goods and services received in exchange for goods and services provided.

Barterings Big Comeback

To really show you the power of bartering, let us share a quick story.

In 2005, a young man from Montreal named Kyle MacDonald decided to use the power of the internet to try his hand at bartering. Kyle started with a paper clip and decided he was going to try to trade up to a house -- no, we're not kidding! And guess what ... he did it! After trading a paper clip for a pen, he went through everything from a gas stove to a snowmobile to a recording contract ... and on and on until he ended up with a nice three bedroom, two bath house. Last we heard, MacDonald was back in bartering mode, trying to trade his house. We can't wait to see what he trades for this time!

Barterings Big Comeback

More From Dolans.com

At Dolans.com, Ken and Daria help you level the playing field by exposing sneaky credit card tricks, how to avoid getting "Madoff-ed" and more.

Barterings Big Comeback

Despite these dismal reports, there is hope -- if we African Americans can change our spending habits. Saving what capital we are able to acquire, while using it wisely, is the only immediate solution to these sad trends. The good news is, we are in total control of our actions.

We know that Americans in general – not just blacks – aren't making saving money a priority. Creating a plan for saving today can change your tomorrow. Having a financial cushion eases times of financial hardship and prevents the use of credit cards during emergency situations – such as visits to the hospital (not the mall).

Here are three ways to make saving a part of your life:

Make it automatic – You've heard it before. It's the hardest, yet most simple way to save. Commit yourself to deducting a certain amount of money from each paycheck for savings. Start small with something nominal,such as $10. You'll thank yourself later.
Do it with your friends – Accountability often moves people to action. With that in mind, ask a few friends to join you in creating a savings goal and make a pact to each stash away a certain amount of money each month.
Cash-out – Debit cards have totally changed our accountability when it comes to spending. Instead of swiping, allot the amount of money you want to spend and save each week, and use cash only. This way you can visually keep track of your expenditures.
Talk to your spouse and kids about money – Discussing money with your loved ones promotes the sharing of values and how valuable money is to your familial team. Just do it. Your household and your community will thank you later.

During these tough economic times, being more intelligent about how we use our funds is becoming a critical life skill. Do you have a saving plan that you share with your family and extended community? Please share your thoughts and tips on saving below.

A trained life coach, S. Tia Brown has spent the last 10 years following her passion for journalism as an editor, writer and TV correspondent. Brown has worked for CNN, E!, MSNBC, the New York Daily News, Essence and Black Enterprise. Most recently she served as senior editor for In Touch Weekly magazine. Check out her advice column Do Better, Be Better at www.tiabrown.com.