If I told you a way to save money that was quick, simple and almost always works, would you do it? What if I told you it was negotiating a better price? Is your answer still the same?

Amazingly, most people don’t negotiate. One of the reasons I wrote Money Smart was to give everyone the skills to effectively manage their money. Make it a habit to always ask for a better price. Knowing just the basics about how to negotiate can result in saving money. According to a 2007 Consumer Reports National Research Center study, when people asked for a better price, they received it more than two-thirds of the time. The study also showed that over 70 percent of the time, consumers simply don’t ask.

Everyone can negotiate a better price for cell phone plans, bank account fees, credit card interest rates, furniture, appliances, costs for hotels and airfare, and even doctor bills. All you need are three simple key steps: Asking, Turns (as in taking turns) and Silence.

Ask. Asking is the most powerful tool of all. Always be friendly, but ask for a better price. Take the scenario of calling a credit card company to negotiate a reduced interest rate: Be courteous and simply ask for a better rate. If appropriate, tell the representative that the current rate is more than can be found elsewhere and make receiving a better rate a condition for maintaining your account with their company.

For purchases of items like furniture, ask the sales person for their best price and then tell them you will think about it, and act like you are going to leave. To most salespeople “think about it” is a kiss of death and there’s a good chance they’ll sweeten the deal. If you do actually end the call or leave, you can always come back. Remember, the pressure is usually greater on the sales person than it is on you. You can almost always buy elsewhere, but for them it’s a sale and a commission that will be lost for good.

The next key tool is taking turns. Most negotiation involves taking turns. It is really rather simple, you go, and then I go. This frequently results in the two parties ending up in the middle between their respective starting positions. The trick is to try to get the sales person to go twice. This can often be accomplished by responding to their offer by saying that it’s more than you had hoped to pay and then waiting for them to speak again.

This leads to the third tool – silence. Silence is very powerful. In most negotiations there will be a critical make-or-break moment. Be on the lookout for it and remember that he who speaks first usually loses. In the above example where the sales person and the customer are taking turns, by keeping quiet the customer creates pressure on the sales person to bring the price down, or risk losing the sale.

Negotiating is a must-have financial tool. Making it a habit to always ask for a better price and knowing at least a little bit about basic negotiating can save you a lot of money. Use these 3 simple tools and you will end up saving a lot of money quickly. Negotiate and start saving money today.