By Christmas is over, it’s dreary outside and all the Quality Streets are gone. Oh, and we’re in a pandemic. As if that wasn’t enough, there’s also a chance your post-December bank balance is at an all-time low. But the good news? A new year offers the chance to hit reset.
“Although 2020 was challenging, it did allow us to pay closer attention to our outgoings,” says Finance Editor Kalpana Fitzpatrick. “We can find ways to have more control of our finances in 2021 and, for those who are in a position to save, being good with money is about making smart moves so that you can afford the things you want without getting into difficulties.”
As way of inspiration, we asked five Cosmo editors to reveal their New Year’s money resolutions and how they plan to spend smarter throughout the year ahead.
Saving for my wedding
“2021 is going to be the year I get good with money. It kind of has to be, considering I’ve got a wedding to pay for in December. They’re not lying, folks, it’s pricey to get married. I’m getting my savings in order by squirrelling money away into different pots at the beginning of the month so I won’t notice as much when it’s gone. £25 here, £50 there… It may not feel like a huge stretch at the time, but when I come to paying for various wedding costs, whether it’s makeup or florists, and I find I can take it out of a healthy-looking fund, I’ll thank past me for being so wise.” Cat Harvey-Jenner, Digital Features Editor
Buying less, buying better
“My money goal for 2021 is to a) go on as many foreign holidays as I can afford and b) finish redecorating my flat. It started as a lockdown project and I’m now going room by room. Next stop: finding some mid-century second-hand furniture for my bedroom. Buying better and investing in good-quality items that I’ll keep for years, instead of lots of cheaper stuff that I’ll chuck after six months, feels more important now than ever. Using PayPal’s Pay In 3 will help me spread payments over a few months for items that cost between £45 and £2,000, meaning I can stay in control of my spending and budget more effectively. Maybe there’ll be some extra cash for that trip to Costa Rica after all.” Amy Grier, Executive Editor
Building a conscious wardrobe
“I’m committing to making more sensible decisions when it comes to frivolous fashion purchases. Online shopping is my weakness so my 2021 plan is to adopt a strict one in, one out policy and only let myself ‘add to basket’ if I’ve already made space in my wardrobe - Depop and Vestiaire Collective are both great for selling pre-loved items, and I’ll donate the rest to my local charity shop. For special events I’m keen to take advantage of apps like By Rotation to save me splashing out on a fancy gown I’ll definitely only wear once!” Robyn Munson, Head of Content
Spreading the cost
“2021 is looking like an expensive year for me as I'm going through the process of buying my first flat. With my savings wiped (buying solo is pricey!) I’ll be looking to spread the cost of furniture and electricals using services like PayPal’s Pay In 3 to avoid having to choose between a bed frame and a fridge-freezer. Splitting larger payments into three easy instalments means I can budget better and look forward to having an Insta-worthy flat by the time 2022 rolls around.” Isabella Silvers, Commercial Editor
Prioritising the (baby) essentials
“Next year will be a real adjustment as my partner and I add a new number to our mix – apparently, parenthood doesn’t come cheap! Friends have shared lists of all the things we’ll need and I now feel extremely overwhelmed about how much there is to buy and how little time we have to save. I’ve never been great at budgeting (and I recognise that even having the chance to save is a luxury), so I think we’ll start by putting money away for a pram and see where we end up.” Jess Edwards, Digital Editor
ASK AN EXPERT
Finance Editor Kalpana Fitzpatrick reveals how you can take control of your money in 2021 with three small steps that can help you save big.
- If money is tight, put it where it matters. Dial up the things you love and cut back on the frivolous spends that don’t matter. Don’t feel guilty about spending money on health, fitness or travel if these things will have a positive impact on your lifestyle. Ask yourself, 'if I had £1,000, where would I prioritise it?' Maybe you'd put it towards something big that you’ll cherish for years to come, such as a piece of art, or a well-deserved holiday. Thinking about your purchases carefully gives you the power to meet the goals you really care about.
- If Covid-19 has taught us anything, it’s the importance of staying in control of your finances. Budgeting can help. To get started, you'll need a clear understanding of where your money is going and what’s coming in. In an ideal world, you should have more coming in than out. If that’s not the case, there are things you can do to trim down your outgoings - if you pay any kind of bill (phone, broadband), see if you can switch to a better deal. Once you know how much you have left over, you should be able to work out what you can save and where you can spend.
- Now is a good time to really start thinking about saving some money. The best way to do this? Automate it. Set up a direct debit for a set amount to come out of your current account directly into a savings plan on payday, not at the end of the month. Make it a realistic, affordable amount – it can be as little as £5 or as much as £200. As long as you have a slush fund sitting somewhere, you’ll have the freedom to deal with whatever challenges or unexpected costs come your way.
Spend smarter in 2021 with PayPal Pay In 3
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