I consider myself quite a negotiator, yet overhearing the train conductor’s strategy, I learned there’s a method superior to my own to save money and get what you want.  I was on the train in New Jersey, off to visit my in-laws this week, when I overheard one of the train conductors speaking to his friends. He bragged about his amazing money saving strategy. Being both nosey and interested in saving money, he grabbed my attention. He didn’t seem to mind my listening in, in fact his demeanor suggested he was proud of his accomplishment and he wanted to broadcast it.

SAVE MONEY

THE SECRET TIP TO GET WHAT YOU WANT

The conductor went to rent a luxury apartment. He decided the price he was willing to pay and wrote it down on a piece of paper.

Next, he sauntered in to the leasing office and said; “Can you rent me an apartment for this amount?” and handed the paper to the leasing agent.

The leasing agent replied, “I don’t know.”

The conductor walked out.

The leasing agent called out, “Wait a minute. I can give you an apartment for this amount,” raising the ante a bit.

The conductor replied, “No thank you,” and walked out.

The leasing agent again went running after him and said, ”Wait one minute, let me get my manager.”

The manager came in and the conductor handed him the paper with his price on it and asked for the apartment. As the manager was attempting to deliberate, the conductor left.

The manager went running after the conductor and said, “Yes, you can have the apartment at that price.”

The conductor didn’t haggle, he didn’t bargain, in fact, he didn’t say much of anything. He wrote down his predetermined price, and was quite willing to walk away if he couldn’t get the apartment for the price he wanted to pay. The entire ordeal was over in less than 10 minutes, with little stress to the conductor.

THE TAKEAWAY

1. Know your price.
2. Be willing to walk away if the price is not met.
3. Don’t waste valuable time haggling.

Where I usually fall short is in the back and forth. Typically, I’m not one hundred percent sure of my own bottom line. I learned from this chance encounter to be more deliberate and evaluate in advance what is my “walk away price.”

On the other hand, my time is quite valuable, and going through this exercise, if unsuccessful the first time, could cost quite a bit of time. So that factor must be included in the strategy as well. Either way, I am definitely going to give this one a try, what about you?

MY ATTEMPT AT NO HAGGLE NEGOTIATING

One of my indulgences is art. I love art and collect original art. There is a shop in NYC where El Carino and I have bought several pieces in the past. On this trip, I decided to try out the train conductor’s strategy.

We found a piece we loved, wrote down the price (about 15% less than the listed price) and asked for free shipping as well. The dealer accepted our price. That was quite fortunate for us, as I don’t know if I could have walked away. This artist is my favorite and the pricing is quite fair. We are thrilled with the art and the success of the train conductors negotiating tactic. Give it a try!

ACTION STEPS

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it for all of your personal finance thoughts, activities, and plans.

• Next time you are looking to purchase a negotiable item, do your research in advance and come up with your bottom line figure.
• Write it down and hand it to the sales person.
• Be ready and willing to walk away, so it’s probably best to try this technique only when you are committed to walking if you don’t get your price.
• Let me know how this method works out for you.

More Money Saving Tips

55 Painless Money Saving Tips; Dough Roller

How to Stop Spending and Start Saving; Not Made of Money

100 Tips for Saving Money; The Simple Dollar

10 Unconventional Money Saving Tips; Get Rich Slowly

8 Painless Money Saving Tips; US News

30 Easy Ways to Save Money (No You are Not Doing All of Them); Dumb Little Man

Barb Across the Blogoshpere

Self Directed Carnival of Investing at Arbor Investment Planner

Festival of Frugality at Penniless Parenting

Carnival of Personal Finance at Well Heeled Blog

Brian, the guy who cuts our grass began his conversation with me, “You look lovely today Ms. Friedberg.”

1. Great move to start with a compliment

Upon inquiring about Brian’s well being, he mentioned that he’s not doing too well due to his case of poison ivy.

2. Garner symathy

He went on to comment about the two big hideous brown patches in our yard where some trees were recently removed. Genially, he offered, “I have everything in my truck today to reseed the bare areas. I’m looking to offer you more services and help keep your lawn beautiful.”

3. Ask for what you want

How could I say no?

I was in a great mood, due to his initial compliment. Then, I empathized with Brian about his poison ivy. He set me up to say yes. When you are in a good mood, you tend to say “yes.” Needless to say, I agreed to the additional services. Brian made some extra cash that day, and I got some work completed I probably could have done myself for half the cost. Nevertheless, I was happy and so was Brian.

The Takeaway

I don’t think Brian went through this conversation off the top of his head. Brian had superior sales techniques, honed and practiced. He may have said to himself, I’m going to upsell every customer I see today and increase as many extra services as possible. We can all learn from Brian’s technique.

Have a success plan every day; make it specific, and detailed. Align it with your goals.

I doubt whether Brian sold extra services to every customer he saw that day, but if he succeeded with 50%, that may have yielded a few hundred extra bucks. Multiply that amount by 20 working days in a month, and he could double his monthly income!

Be a Success

There are opportunities to increase your income in every situation. By being a stellar employee and making money for your employer, you set yourself up for a raise. You don’t need to succeed 100% of the time to benefit.

Work for yourself? Set a big goal. Give yourself something great to reach for.

Improve your services, you will create additional income through excellent performance, and self marketing.

Set that goal. There are a group of bloggers taking the $30,000 Challenge, banding together to increase their blogging income this year. Whether they succeed or not, remains to be seen, but taking that pledge and setting the goal, is a step in the direction of greater wealth.

What commitment can you make to increase your income?

image credit; @Doug88888

For a quick overview of Investing Strategies, pick up my FREE eBook; 20 Minute Guide to Investing (top right of the page). If you like what you’re reading, sign up for my RSS feed or email subscription and follow me on twitter so you get the word immediately.

“It’s learning how to negotiate to keep both sides happy – whether it’s for a multi-million dollar contract or just which show to watch on TV, that determines the quality and enjoyment of our lives.” Leigh Steinberg

Negotiation is key to wealth in money and life. Each time you negotiate, you gain resources to bring you closer to your financial goals.

Watch this Youtube video from the Barbfriedberg Channel to see exactly how it’s done!

Negotiation is hard, but rewarding. It’s a skill like selling, typing, woodworking, or any other. Don’t expect to be a success immediately. Start small and practice, over time the financial rewards will be enormous.

Barb Around the Web

Over the last four months my life has been in transition with the sale of our home, the purchase of a short sale condo, and a relocation across the land. During this time I needed to prioritize my work and blogging responsibilities and eliminate all but the most essential. In that vein, I haven’t shared my writing and mentions on other sites or let you in on the excellent reads from my fellow bloggers. Enjoy the update!

Benzinga.com Brain Trust Columns

• Weak Economy, So What?
• Stocks, Bonds, Cash…. Oh My
• What is Required to Buy a Short Sale Property

American Public Media Guest Blogger article

• What’s Going on with the Real Estate Market?

Other mentions:

• Kat’s Money Corner in The Kansas City Star
• Quoted in Our Business News
• Flexo at Consumerism Commentary nominated me for a Plutus Award
• Totally Money Blog
• Financially Consumed
• Free From Broke
• Free Money Wisdom
• Retire by Forty

Barb Recommend’s

• First Gen American-Babci’s Cleaning and Storage Tips for Slobs
• Little House in the Valley-Are you a Spendster?
• Wealth Informatics-Are We Saving too Much for Retirement?
• Baking the Budget-Whan You Make a Change, Make a Plan
• Tightfisted Miser-My Self Storage Unit Auction Experience
• Afford Anything-Five Habits that Help Me Save
• Krantcents-Can You Sum Up Your Career in 6 Words?
• Money Crashers-How to Stop Worrying About Money
• Invest it Wisely at Yakezie.com-Don’t Let Time Pass You By
• Moneycone-10 Reasons Why the Rich Hate Warren Buffett
• Retire by 40-Winning
• Financial Excellence-Needs versus Wants
• Totally Money-Tips to Fight the Impulse Shopping Urge
• Best Colleges Online-Innovative Ways Colleges are Saving Money

What is keeping you from negotiating? What negotiating successes have you experienced?

FREE MONEY; SAVED $10.00

& BARB RECOMMENDS LINK ROUND UP!

For a quick overview of Investing Strategies, pick up my FREE eBook; 20 Minute Guide to Investing (top right of the page). If you like what you’re reading, sign up for my RSS feed or email subscription and follow me on twitter so you get the word immediately.  

I’m an expert negotiator. In fact, some might say I’m a bit “over the top” with negotiating. Barely a day goes by that I don’t try to get a better price on a purchase.

Every time you negotiate for a better price, YOU GET FREE MONEY. Negotiate for a reduced price, save money, and over time, it adds up! The past four days I’ve negotiated discounts of more than $50.00 on items I would have purchased anyhow.

Here are this week’s negotiating wins:

Saved 10% on Shoes

The sandals I selected were originally $49.99 and marked down to $39.99. Directly above the shoes was a BIG SIGN that said; 40% OFF ORIGINAL PRICE. At check out I confirmed the shoe price and was told they were $39.99.

 I mentioned the 40% OFF sign directly above the shoes. Obviously, $10.00 is not 40% of $49.99!

The clerk replied, “There’s only a certain amount off I’m able to give. I can give you the sandals for $29.99 (40% off original price).

In the course of a 5 minute sale I saved $10.00. Not bad!

Saved 5% on Car Maintenance and Got a Free Tire Rotation

On a visit to the dealer for the 60,000 mile check up (for El Carino’s car), I brought the entire car care record. I brought in a competitors coupon for some of the services and wound up with a 5% discount off the entire bill and a free tire rotation. Not my best savings, but better than nothing.

I was friendly, chatty, and assertive. And it saved me some cash.

More free money!

If negotiating is difficult for you, start small, practice, and enjoy the savings.

Now, enjoy some of the articles I’ve been reading.

Barb Recommends:

• Don’t be House Poor by Narrow Bridge is great real estate advice.
• Get work done in half the time, really. Learn how in this Zen Habits guest post by Scott Young.
• Earn 4.6% yield on your cash in May by purchasing I-Bonds. Learn about it at My Dollar Plan.
• Read about inflation at  Hope to Prosper and you will not regret it!
• The everything you need to know about copy writing by the master; Copyblogger.
• Here’s how to make money on-line from Christine Biz.
• Do Alexa rankings matter? Freelance PF questions this ubiquitous metric.
• Is the Frugal Movement Over? Asks Sandy at Yes I am Cheap. She makes a good point, what do you think?
• Who doesn’t like to make money? If you have extra stuff, you must read Moneycone’s article about How to Sell Stuff on Amazon. It seems easy. I’m going to try it!
• Krantcents divulges 10 Changes to Make Millions! Go on, give it a try.

Featured Articles & Mentions Across the Blogosphere:

• Finanzas Personales a favorite Peruvian personal finance blog
• Totally Money Carnival at Retirebyforty
• Carnival of Wealth at Personal Dividends
• Yakezie Carnival at The Ultimate Juggle
• Yakezie Carnival at Little House inthe Valley
• Len Penzo’s famous Black Coffee
• Received Krantcents KC award

 image credit; helen adriana

  ”I’d like to add that negotiating is not something to be avoided or feared – it’s an everyday part of life.” Leigh Steinberg

American businessman and author summarized the importance of negotiation beautifully. Learn to negotiate, embrace it, and up your wealth and life satisfaction. Through negotiation you get more of what you want out of life!

MAIN TOPIC; My Timing Belt Needs Replacing Again?

There is hardly a consumer situation I’ve encountered that wouldn’t benefit from a little negotiation. Just got a call from the mechanic looking at my 1998 SUV with 100k miles. He had the nerve to tell me that my timing belt needed replacing. On an old car, that shouldn’t come as much of a surprise, unless- I had recently replaced the timing belt.

I went to my records and found that I replaced the belt 10,000 miles ago.

I didn’t remember the manual suggesting that the timing belt needed replacing  every 10,000 miles.  So, I asked the mechanic, “How long is the timing belt supposed to last?” 

He replied, “About 60K miles.”

In a matter of fact and cordial tone I stated, “You just installed a new timing belt about 10,000 miles ago; since the average life span is about 60,000 miles; I’m unwilling to pay for a new one. As you know, I have used your company exclusively for the past 6 years. What can you do for me?”

Barb’s tip: Keep a word document with every repair on every car; include, date, cost, mileage, mechanic shop, and repair completed.

Negotiating 101

Consider what an acceptable outcome is. I decided that I would be willing to split the cost of the repair with the company. Additionally, I was also willing to go to another mechanic if they would not stand by their work. I had nothing to loose.

As expected, the auto repair company agreed to cover the cost of parts, about $500.00 for the timing belt and accompanying parts, and I paid about $350.00 for the labor.

$500.00 savings, not bad for 10 minutes of my time!

PRACTICAL APPLICATION; Anything is negotiable.

The absolute worst result is “NO.”

The best result is free.

Somewhere in between is frequently where you end up.

The best negotiation is one in which both parties leave satisfied! Consider a reasonable outcome and work towards that outcome. The more you negotiate the more money you have to spend on other things or save!

NEGOTIATION IS NOT DIFFICULT, BUT LIKE ANY SKILL, REQUIRES PRACTICE.

Use these steps as a blueprint for your negotiations.

Negotiating Steps:                         

1. Gather information first.
2. Set acceptable outcomes in your mind.
3. Let the company know what a loyal customer you are.
4. Use the information and integrate it into a request. ASK FOR WHAT YOU WANT.
5. If necessary, state your other options to the vendor.

ACTION STEPS:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

• Negotiate something today. Practice with your son, daughter, husband, wife, boss, co-worker, or anyone you are dealing with.
• Then practice again tomorrow. The more you negotiate, the more you get what you want!

image credit; sky competition

What are your negotiating experiences? What about your negotiating successes and failures? Any negotiating tips? 

Please pick up my RSS feed or email subscription and follow me on twitter so you get the word immediately.  After reading this post, stop by Yakezie.com for my guest article entitled; You Are Your Brand, Tips for Building Your Readership

Get Money Back & Excellent Winter Reading Links

Welcome to Part 2 of the Follow up Series: Be sure to check out Part 1-Job Search Strategy after reading this segment.

MAIN TOPIC:  Did My Daughter Get Money Back from Amazon?

Amazon prime is a new service which offers free shipping on everything from Amazon; FOR A LARGE FLAT FEE. My daughter was home from college for winter break and low and behold, guess what we found? In a routine review of her finances, we came across a BIG charge from Amazon Prime.

Listen in on the ensuing conversation: 

Me: “Daughter, did you purchase the Amazon Prime service?”

Daughter: “Are you kidding, it’s way too expensive!”

Me: “Do you know how it got there?”

Daughter: “Well…. maybe it was one of those trials where I get it free for a month and I can cancel if I don’t want it.”

Me: “Yea, that’s probably what happened. That’s where they really get you!” And then my traditional personal finance lecture began, “Never sign up for a free trial that requires an action for you to cancel.”

Daughter: “Why not?”

Me: “Because even though you get a month for free, you (and most everyone else) will inadvertently FORGET TO CANCEL. Then you get socked with years subscription that you can’t afford. YOU NEED TO CANCEL IT NOW.”

Daughter: “I’ll go on the site and figure it out…….. OH NO, IT SAYS I CAN’T CANCEL.”

Me: “NEVER GIVE UP. YOU NEED TO CALL THEM RIGHT AWAY AND EXPLAIN TO AMAZON THAT YOU DIDN’T KNOW YOU WERE SIGNING UP AND THAT YOU CANNOT AFFORD THE FEE.”

Daughter: “It’ll never work. After all, it says I can’t cancel once the month trial period is up.”

Me: In an elevated screaming tone of voice, “It doesn’t matter what it says, YOU NEVER GIVE UP. Call them NOW and explain that you can’t afford it and that they need to cancel your subscription and REFUND your money.”

PRACTICAL APPLICATION: Follow up Really Works!

What do you think? Did she get her money back?

In one brief conversation with Amazon, they graciously refunded her money and credited her account.

The takeaway is this, NEVER GIVE UP. Keep asking for what you want, and there’s a good chance you will get it.

My daughter felt FANTASTIC when she got that money (that she could ill afford to lose) credited back to her account. And she did a professional job requesting the refund.

ACTION STEP:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

1. Identify something you want, a job, a raise, etc.
2.  Write in your schedule every few days the steps you will take to attain your goal.
3. Be sure to check out Part 1-Job Search Strategy after reading this segment.

Stay tuned for Part 3-Make Money by Following up; How I Got a Discount on a Computer Repair

If you like what you’re reading, pick up my RSS feed and follow me on twitter so you get the word immediately.  

Is there a situation where you persisted and had a financial gain?

image credit: Joe Frank

Curl up and check out some of the great articles I’ve been reading:

• This one brought tears to my eyes (in a good way); Money Reasons wrote about Family Time First.
• Christine.biz asks, You’ve Identified Your Blog Market Right? One of my old blogging buddies from Money Funk has a new site with tons of great content. You can’t miss this one.
• The Pros and Cons of 5 Legal (and illegal) Payday loan options is atLen Penzo dot com. Watch out, there’s a twist at the end.
• Unique approach to a book review of David Bach’s newest book, Debt Free for Life, by Financial Samurai
• Buck inspire holds you accountable. See how accountability leads to success.
• Visit the Saved Quarter and check out the “challenge.” You will be better off for it!
• Want permission not to shower? Get it at Sustainable Personal Finance in Sustainability Tips.
• Who doesn’t want a better credit score? Visit David Bach’s Finish Rich and get the 12 Step Action Plan to Improve Your Credit Score.
• Check out comfort cash, a  new approach to a familiar concept at the Silver Purse
• Mark Riddix dot comgives a comprehensive list of 25 FREE eBooks that will Increase Your Knowledge About Blogging
• Valuation Informed Indexing  is an interesting take on the Asset Allocation topic. Learn more about it at My Personal Finance Journey.
• You gotta love this one by Krantcents; Valentines Day on the Cheap

“Belief creates the actual fact.” William James

I believe my old car does not define me or how successful I am.

MAIN TOPIC: How a Routine Matter Turned into a $500 Expense

After picking up the ringing phone, I expected the usual, “Your car is ready.” Instead, the auto guy said, “Although your front brakes pass inspection, they will need to be replaced within the next month or two.”

My first thought was, “Oh crap! I brought the car in for it’s annual inspection, and I was not expecting a recommended repair.”  But, I continued to listen….

“Wait, I’m not done,” said Mr. car repair man, “Your coolant hose is leaking too.” (That was not a big surprise as there’s some unidentifiable gooky stuff on the garage floor.)

Of course my next question was, “How much, with my loyal customer discount?” And I did not forget to request a discount! (If you don’t ask, you will not get a discount!) 

“With your 10% discount, the charges will be about $500. Do you want the work done now, since your car is already here?”

I raced up the stairs to my home office, logged on to my trusty (2003 model) desktop computer, and pulled up the “car care record” document. Okay, car has 104,000 miles and front brakes have never been replaced, nor the coolant hose. It’s probably about time!

PRACTICAL APPLICATION; Why the $500 Repair Bill Does Not Bother Me

Our family keeps our cars as long as possible. My car is a 1998 model and El Carino has the newer 2003. Mentally, when I got the information about the repairs I immediately considered how much cheaper a $500 repair is than the expenses I would have in purchasing a new car.

Which would you prefer, $500 unexpected bill or 20,000 to 30,000 dollars for a new car plus higher insurance premiums, fees, taxes, and immediate depreciation?

My parents style of coping with adversity seemed silly to me growing up. Whenever something bad happened they considered how much worse it could have been. Now, that optimistic attitude REALLY WORKS FOR ME.

When I compared the $500 repair bill with the high costs of buying a new car, I felt sanguine. With an old car, I’m not surprised by repairs, I expect them. Fortunately, we have funds to pay for these repairs and don’t have to finance them!

In fact, I take pride in the fact that although we could afford a new car, we CHOOSE TO DRIVE OLDER MODELS. Not keeping up with the Jones makes me feel in control!

ACTION STEPS:

 Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

• Look for the silver lining in a recent difficulty.
• Make a commitment to keep one major item as long as possible with out replacing it. 
• Be aware of unexpected money sucks like phantom energy drains in your home.

 If you like what you’re reading, pick up my RSS feed and follow me on twitter so you get the word immediately. 

Barbara Friedberg Personal Finance across the blogosphere:

My work was showcased this week at these sites. Why not stop by and check out the excellent articles?

• My guest post article, One Step Stock Analysis was published at Buy Like Buffet and I Stock Analyst
• Carnival of Personal Finance #288; Dollar matters at Financial Highway
• 50Plus Finance 7 Days til Xmas published Resilience and Wealth
• Festival of Frugality at Step Away From the Mall published Free Government Personal Finance Resources-Holiday Gift-part 1.

What about you? What is your philosophy on car buying? Old, new, lease, buy outright, or finance?

image credit: Miguel Angelo

Incorporate negotiating into your life and get more for less.

Welcome to another new feature at BarbaraFriedbergPersonalFinance, “Barb’s Quick Personal Finance Tip.” This feature gives you access to quick tips to further your financial goals. Look for these tips periodically. Better yet, pick up my RSS feed and follow me on twitter so you get the word immediately.  

NYC etching

Back story: Spent the week-end in NYC and indulged in one of my guilty pleasures; creating a “wealthy environment.” I love beautiful things at economical prices.

• At NYC street fair picked up original etching for $20.00. Beautiful artwork at a beautiful price.
• Rushed to Michael’s for an elegant frame. Expected the usual sale, 20-40% off. Instead, found a buy one at full price and get the second for a penny. I didn’t need two, I needed one. I approached another frame shopper asking if she was interested in buying the second for a penny and splitting the savings. No luck, she needed two.
• Got to the check-out willing to pay FULL PRICE.
• My hail Mary pass, “Do you have any discount for this frame, I don’t want two?”
• Sales clerk, “Sign up for email alerts and get a coupon RIGHT NOW.”

RESULT

Got 50% off the frame, just for asking. 

TIP: Always attempt to negotiate, if you don’t ask you will not save.

ACTION STEP:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans. 

 As part of your shopping experience, regularly ask for discounts. The stress of asking will diminish over time. The extra resources gained will be worth the effort. 

What is your negotiating story? How much did you save? 

“It’s learning how to negotiate to keep both sides happy – whether it’s for a multi-million dollar contract or just which show to watch on TV, that determines the quality and enjoyment of our lives.” Leigh Steinberg 

Continue reading and find out who won during the NEGOTIATION for a higher interest rate at my bank.

Yesterday I talked about how I left a ton of cash in a LOW RATE account without realizing that even a bit over a 1% interest rate is better than a close to 0% return. I went on to discuss my concerns about withdrawing invested funds from some of the internet banks. Next, I related my attempts to match the internet interest rates at my local branch. I left off with the NEGOTIATION.

The importance of this conversation goes beyond just THIS SITUATION, but transfers across many contexts. Negotiating for a better price whenever possible can save you thousands of dollars per year. In fact, at the end of this article I provide a list of other “negotiating” links.

Recap from Yesterday……

Step five: Called the 800 number of my existing bank and asked what type of rates they could offer on my cash. Of course the rate was not the high 1.35%  of the internet banks’ but the customer service representative said they had a promotional 1.1%. In order to avoid opening a “new” account at my bank, I must visit the branch and they would apply the promo rate to my existing account.

Step six: Not so easy. This promo rate was NOT AVAILABLE FOR EXISTING FUNDS, just new funds…….

Step seven: NEGOTIATION TIME! Watch and learn:

 Me: I like this bank, have been with you a long time and do not want to open another account. I know you don’t want to lose my business either.

Bank associate #1: Yes, we want to keep you as a customer. Let me check out our promotional rates. Oops, I’m not authorized to give you a promotional rate, let me  introduce you to someone who can.

Me:  I like this bank, have been with you a long time and do not want to open another account. I know you don’t want to lose my business either. The individual from the bank 800 number said you could give me 1.1%. I would be willing to accept that rate to avoid the hassle of opening a new account, even though I can get 1.35% on-line.

Associate #2: Unfortunately, I can’t give you that rate and I need to call corporate for an authorization. I will call you within the next day or two.

What do you think happened?

One day later…. Ring ring……the call came.

Associate #2: Corporate has authorized your account for the promotional rate of 1.1% for 3 months.

Negotiating Summary

I love to negotiate and am one of those who tries to negotiate a better price whenever possible. Here’s a simple interpretation of how this negotiation succeeded:

1. Understand who has the upper hand. In this case, I did because I had the money and the freedom to move to another bank. If you didn’t have much money, or had not been a valuable customer, the bank would not care if you stayed or left.
2. I informed the bank of what I brought to the table; money and longevity.
3. I empathized with the bank, I understood their position; “You don’t want to lose me as a customer.”
4. I explained clearly what I wanted; “The promotional rate that I was promised on the phone of 1.1%”
5. I was courteous and understanding, but firm.
6. In every negotiation, consider how both parties can leave SATISFIED. In this case, the bank was satisfied because they kept my money and made me happy. I was satisfied because I didn’t have to go through the inconvenience of opening a new account.

Historical Perspective

I would be remiss if I didn’t mention the humor in fighting for a “high” rate of 1.1%. For those younger readers, the interest rate climate of today is the lowest in decades and far below recent historical averages in the 3% – 4% range for bank money market accounts. It is with that perspective that I chuckle that 1.1% is seen as a high interest rate. For me, this was an important financial activity to maximize the return on our cash. One thing my longevity in the financial markets has given me (other than a few crows feet ) is the knowledge that every environment will change at some point. Thus, it is wise to focus on making the best financial decisions for not only your personal situation, but for the present economic scenario. And of course, when saving for retirement, you won’t make much progress with a one percent return!

Do you regularly negotiate to achieve better returns? What is your take on this story? How are you coping with the low interest rate environment?  

 ACTION STEP:

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans.

Practice negotiating to build up your confidence. Start with something small, and go on to bigger challenges. Strong negotiation skills can definitely increase your wealth in life.

image credit: US Mission

FOR MORE NEGOTIATING ARTICLES READ THESE FROM OUTSTANDING YAKEZIE BLOGGERS:

• Free From Broke – Sure Fire Tips for Negotiating Your Credit Card Debt
• Car Negotiation Coach-How to Systematically Negotiate a Low Car Price
• Foreigner’s Finance’s – How to Negotiate Overdraft Fees
• Redeeming Riches- Negotiate Your Home and Auto Insurance
• Canadian Finance Blog – How to Negotiate a Deal

AND LINK ROUND UP

20 Minute Guide to Investing is NOW AVAILABLE! If you have any interest in learning about investing, either now or later, you must download this FREE eBook!

“I’m  lazy but generally task oriented so having a hoop to jump through means eventially I’ll make the effort.” Thomas Lynch

Face up to it! We are all lazy once in a while. It’s not a crime. Find out about my money adventure combating a bout of laziness, and what it cost me.

MAIN TOPIC: Procrastination Does Not Pay

I have been procrastinating a very important activity for a while. You would think that a personal finance professional would be on top of all of her own financial activities. True confessions, I sometimes let our family finances slip into the background. Okay, I said it!

To propel action, I stuck this personal finance task on my  to do list every day, for about two month and finally, I actually completed it!

We have a relatively large percent of cash in our portfolio due to some upcoming financial events. With interest rates so low, I avoided maximizing our return. That avoidance cost over $1,000/year for a year or two. And that is a lot of money!!

PRACTICAL APPLICATION: Pay Attention

While reviewing our finances on Quicken, I realized that there is a real difference between 0.02% and 1.35% on significant sums of money. And that difference over time adds up!

Step one: Went on line to Bankrate.com to see the highest rate I could get on cash, while keeping it liquid.

Step two: Opened an on-line account at an internet bank I never heard up. I admit, I was a bit nervous using this FDIC insured unknown bank. I read some on-line reviews, including one at Consumerism Commentary LINK  and it seemed OK.

Step three: After opening the account, still a bit nervous, I read more bank reviews. Turns out several people had difficulty WITHDRAWING their money. And there were more than a few complaints at the BBB.

Step four: I NEVER FUNDED (TRANSFERRED THE MONEY IN TO THE BANK) THE ACCOUNT.

Back to step one! Now, I realize that in the scope of things, this is not a terrible problem, but it is a part of maintaining financial responsibility. Obsessive that I am, I returned to Bankrate.com to consider another more popular internet banks. I checked out the reviews IN ADVANCE of opening the account this time. Same story, some folks had difficulty taking their money out! What to do?

Step five: Called the 800 number of my existing bank and asked what type of rates they could offer on my cash. Of course the rate was not the high 1.35% J of the internet banks’ but the customer service representative said they had a promotional 1.1%. In order to avoid opening a “new” account at my bank, I must visit the branch and they would apply the promo rate to my existing account.

Step six: Not so easy. This promo rate was NOT AVAILABLE FOR EXISTING FUNDS, just new funds…….

What do you think I did? Stay tuned, the next post will tell you how this story turned out. In the meantime, take a look at what I’ve been reading on line this week.

Fun Reads from Across the Blogosphere:

YesIamCheap: How to Save Money on Pets (Must view for pet owners)

Kitchen Sink: Whatever Can be on Your Mind? (Business through the eyes of Mad Men)

KNS Financial: How I Feel About Money Today (Can you relate to this?)

The Millionaire Nurse: The 5 Whys and Why You Should Read This (Clever concept)

Money Reasons: My 90% Dip in the Value of One of My Stocks (This happens to every investor)

Ultimate Money Blog: How to Make Money Blogging (Who doesn’t want to know this?)

Squirrelers: Don’t be a Turkey; Career Lessons from the Allen Iverson Saga  (Smart list for excelling in LIFE.)

Beating Broke: Even a Little Movement is Better than None (Words to live by)

Out of Debt Again: Six Tips for Decorating on a Budget (Read this if you have a home or apartment)

BarbaraFriedbergPersonalFinance across the Blogoshere

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• Budgeting in the Fun Stuff: What is a Stock and Why Should I Care
• Yakezie-Premier Personal Finance Network: BarbaraFriedbergPersonalFinance Member Post

Everypesocounts: My logo is posted here! You gotta visit this site, not only is the information useful, but the layout is terrific.

20 Minute Guide to Investing & 10 Steps to Take Before Investing are mentioned at:

• The Millionaire Nurse Blog
• KNS Financial
• The Oblivious Investor
• Invest it Wisely (Book review)

Yakezie Member post- BarbaraFriedbergPersonalFinance is mentioned at:

•  Redeeming Riches

What can the Average Joe/Jane Expect When the Dollar Fluctuates is mentioned at:

• Maximizing Money