Ben Soccodato.
Celebrating the holiday season while keeping your finances intact is a tough balancing act for all of us, especially the business owner. We’ve complied some tips for 2023 that just might help save some money and increase the impact of your giving.
For businesses looking to provide gifts for clients, the following tips may go a long with helping navigate this busy time of year. It’s great to give back to your clients, but not at the expense of your business operation.
Have a Budget: Yes, the ultimate goal is to show your clients and customers how much you value their business. You want to represent that professional relationship with a quality gift, but you don’t want to overspend. Set a budget and stick to it.
Segment Your Gift: Obviously, relationships differ from client to client. You may want your gifts to stand out. Segmenting your gifts between clients, based on the type of clients or size of their company adds an element of variety and avoids the perception of not putting any thought into your gifts.
Use Caution with Perishable Items: Most everyone loves food, especially around the holidays. But you must consider the downside to shipping food, even if you have a local client base. We once had a fellow business ship pies to their customers, only several of the pies arrived damaged. This caused disappointment and offended some of the clients. Try to avoid that potential scenario if you’re looking to gift perishable items.
Holiday Gifts Not on the Holiday: Consider the concept of doing your holiday gift tradition outside of the holiday season. We’re all accustomed to receiving gifts around this time of the year. Gifting on a Thanksgiving or even the July 4 weekend provides an added benefit of exclusivity and surprise. Your business gift might have a bigger impact if it is received at a different time of year.
Whether for business or personal gift-giving it’s sensible to set a budget. No matter how hard we try, we all tend to over-extend when it comes to spending during the holidays. It’s important to be realistic about your budget. Be mindful of potential pitfalls that could lead you down the road of overspending such as competing with family members who can afford to spend a lot of money on you. People understand budgeting and spending limitations. Avoid building up credit card debt or dipping into your savings account to purchase gifts. Before the holiday shopping season begins, sit down, set a budget, and stick to it.
Use Cash Back Cards: You’re going to be spending money this holiday season, so might as well make it work for you. Take advantage of a high cash-back reward card. For example, if you’re doing a lot of spending on Amazon, consider taking advantage of their credit card. They offer a 5% cash back card on your spending if you have a membership with Amazon Prime. You also have the option to buy now and pay later, to avoid piling up your debt in the immediate, allowing you to pay it off with various financing options.
Shop Early: Starting your shopping early can help ensure that your gifts will be available and delivered on time for the holidays. Starting early also allows you to take your time, find the right gifts, make price comparisons, discover potential bargains, and track spending to make sure you’re sticking to your budget. Also, if you spread out your shopping over a longer period of time, you could prevent the bigger hits from happening all at once to your bank account or credit card.
Homemade Gifts: Crafting homemade gifts and giving them as presents is a personalized touch, not many retail purchases can compete with. Additionally, homemade gifts often prove more economical than commercially purchased alternatives, making them an endearing and budget-conscious choice. By investing time and creativity, you create a meaningful gesture that resonates deeply with your loved ones during the holiday season.
Gift Exchanges: We understand that purchasing a gift for each family member may prove to be financially overwhelming, but we’ve got some alternatives for you. Consider doing a gift exchange (White Elephant/Yankee Swap). Not only are they fun and interactive, but everyone leaves with a tangible gift and the intangible gift of a good time. These alternatives also allow you and your guests to only purchase one gift, rather than having to buy gifts for everyone. And there’s always the classic gift-giving tradition of Secret Santa/ While not as interactive as the gift exchanges, it’s still a tried-and-true method of celebrating the holiday without hurting your wallet.
Time as a Gift: Giving the gift of your time is invaluable, regardless of your reasons. Whether you’re short on cash this year or looking to avoid the chaos of holiday spending, hosting a brunch for your family and friends is a great way to celebrate the holiday and each other. These last four years have come with a multitude of financial and life challenges. We shouldn’t take the little things for granted. There may be no better gift than the gift of time!
Remember What’s Important: Keeping within a budget and having realistic spending goals will make for a much happier holiday season for you and your bank account. It’s also important to not let the stress of the holiday season overshadow the special moments with family and the good times with friends.
All these tips may help alleviate that holiday stress. But also remember to take time to enjoy the holidays. This season is about everyone, including yourself. Balancing your finances at this time of year is stressful enough, so don’t let it affect the time you have with your loved ones.
The SKG Team at Barnum Financial Group is led by Ben Soccodato and Chris Kampitsis. The headquarters are at 565 Taxter Road, Ste. 625, in Elmsford, NY 10523.
