We begin to negotiate earlier than we even know what the word really means. We negotiate when we swap our house chores with our siblings, or when we exchange candy with other kids in school in exchange for something else.

As we grow older, our negotiation skills improve as we begin to bargain for substances with a higher value than candy and house chores. Our negotiation skills will be great importance when buying a house or accepting a job offer. Below are a few reasons I recommend regular negotiation;

1. It allows for continuous feedback:

Negotiating regularly allows for a continuous two-way flow of information, this could be between an employer and an employee.

I once approached my employer asking for a 15% increase in my salary. Despite the fact that it was not an appropriate time to discuss such matters, my employer came back to me with an offer of a 10% raise and an opening for further discussion during summer.

But this was not all. I asked my employer for another meeting, hoping to explain to them why the work I did was worth a 15% increase. Surprisingly, they agreed to the meeting, despite already agreeing to raise my salary by 10%. According to them, the reason they agreed to grant me the meeting was to give me a feedback.

During the meeting, they explained to me how much they appreciated my effort and it was their hope I didn’t nurse any feeling that I was undervalued. I was told the issue of my compensation will be up for further discussion when the window for negotiation opens again.

Although I didn’t get the 15% raised I had hoped for, I gained two things from this experience. Firstly, I felt acknowledged, and secondly, I felt valued. I went on to inquire what I could do to ensure that expectations are met and I am eligible for a salary increase.

2. You will never make and/or save $10 if you don’t ask:

Although it is important to make an attempt such as the one explained above for a salary increase, but caution must be exercised when doing such. You must be certain that your proposal for an increased pay will not be met by hostility from your employer. They are several cases where this has happened. However, if you are sure there would be no form of hostility arising from your request, then you should go ahead and ask. You can never tell.

I was lucky to come across a townhouse which normally rent for $950/mo going for $89K. The property was in a great area and was pretty new so it needed little work. Despite the property listing so low, I approach the owners with a $75K offer. They replied with $85K. I sent them a counteroffer of $79K, which they eventually accepted. You will never know unless you ask.

3. It builds confidence and experience:

The more you negotiate, the easier and more fun it gets. When you get to the point of financial independence, you won’t really have anything to lose. The fact that a property or item has been negotiated upon, doesn’t mean you can’t renegotiate. There was a time that I owned a townhouse which was under contract with financing. I wanted to switch to cash, so I approached the seller offering to pay cash if they would drop the price by $2K. They agreed.

There was another time that I bought this condo and in its contract was the phrase “as is”. But during the inspection, I came across a few issues that were going to be too expensive for me to handle. I communicated with the seller to address these issues. The seller didn’t need to, as the contract was in their favor. I would have still bought the place regardless, but the seller agreed to fix the issues. It never hurts to ask.

4. It increases your buying power in more ways than one:

Effective and fruitful negotiations always yield gains, most times financial gains. You can save money on different deals that you have negotiated and use the money for more investment. Effective negotiation improves your buying power and velocity of your money. Never be afraid to practice the art of negotiation.