Many people dislike negotiating—whether it’s for a major purchase like a car or a house, a recurring expense such as a monthly internet bill, or even a job offer.
There are many reasons people avoid negotiation: they may be shy, worry about seeming impolite, not know how to begin, or simply feel uncomfortable with confrontation.
Yet avoiding negotiation can have a real financial cost. When you don’t negotiate, you often pay more than necessary or miss opportunities to increase your earnings.
In many situations negotiation is expected. If you never ask, you may be leaving a lot of money on the table. For example, a $10 monthly charge you don’t negotiate equals $120 a year. If you save $100 a month by negotiating a better rate (which is often quite achievable), that’s $1,200 a year—usually for a one-time ask.