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Trade, Borrow And Rent To Save Money

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The Tampa Tribune

Published: November 9, 2008

In recent years the average family of four has spent more than $5,300 on food, nearly $3,000 on gifts, $2,100 on clothing and $3,000 on recreation. That's all well and good when you're spending money that you have, but what about if you're watching your pennies because of a layoff or a plummeting 401(k) balance?

In this economy, both are all too common. So it's time to get creative. Yes, there are certain expenses in the family budget that are fixed - your rent or mortgage, utilities, car payment, gas to get you back and forth to work, and groceries to put food on the table. I'd put child care costs and health insurance on that list as well. But most other things are variable expenses; you can decide where to cut back.

One way people are doing this is by not buying the things they want - books, DVDs, toys - and instead, trading, renting, borrowing, or even taking someone else's unwanted belongings. The Internet has made it easier than ever to find the stuff you're looking for.

Here are a few of my favorite ways to save:

Trade - We all have books gathering dust on our shelves, or movies we know we'll never watch again. So next time you spot a book or DVD you'd like to buy, why not save your money and make a trade instead? There are a handful of sites that let you do this online, with Book Mooch ( www.bookmooch.com) and Swaptree ( www.swaptree.com) among the most popular. As with most sites, you cover the cost of shipping.

Rent - It's not easy to keep up with the latest in fashion under normal conditions, and it gets even tougher when money is tight. But companies are making it possible to rent the items you want. A couple of the biggies: Bag Borrow Steal (www.bagborrow steal.com) and From Bags to Riches ( www.frombagstoriches.com), which rent designer handbags, and Borrowed Bling (www. borrowedbling.com), which of course focuses on jewelry.

Borrow - Believe it or not, it's possible to borrow items online. Through sites such as NeighBORROW (www.neighborrow .com) and Lending Circle ( www.lendingcircle.com), you can join networks of people in your city, town, neighborhood, or even in your apartment building who are willing to lend items you need but don't want to buy.

Take - Sites that help people pass on their used items to new owners are popping up all over the Internet. You can find furniture, appliances, toys, coupons and everything in between. One of the best examples, Freecycle ( www.freecycle.org), has more than 4,000 local groups. Members post items they want to give away, and you can reply if you see something you want. Because of this network's popularity, I had a little trouble getting anything I e-mailed for - time is of the essence - but there are a number of other alternatives that work in much the same way: Freesharing ( www.freesharing.org), Sharing is Giving ( www.sharingisgiving.org) and FreeUse ( www.freeuse.org) are all worth a look.

A couple of notes on all of these: If you're asked to pay a fee for something that is supposed to be free, it's likely a scam. Also, in this era of identity theft, it's extremely important that you not give away any personal financial information that shouldn't be required for a transaction like this.

Jean Chatzky is an editor-at-large at Money Magazine and serves as AOL's official Money Coach. She is the personal finance editor for NBC's "Today Show."

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