Staying on Budget for the New Year in New York City While in a Pandemic January 13, 2021

The beginning of January typically inspires us to look ahead and think about how we want to improve ourselves. Maybe we want to eat better, exercise more, pick up more hobbies, or just spend more time with loved ones. In January 2020, I made a list of things that I wanted to achieve during the year – some were tactical, like reading 20 books, while some were more aspirational, like being kinder to myself. Given how quickly everything changed in 2020, I completely forgot about that list until a few weeks ago when I found it. I couldn’t help but laugh, as the circumstances didn’t really allow me to achieve a lot on my list (like taking more vacations), but it has me thinking about how I want to go into 2021. I know that our world will continue to be uncertain, so I’m going into my list with a bit more flexibility in mind.

One of the other things I discovered in 2020 was a greater appreciation for finding silver linings amidst so much hardship and challenges. As time went on in 2020, it was hard to not feel completely defeated. Instead of narrowing in on the elements that were stressful or made me sad, I would try and find the silver linings. It wasn’t an easy task, but the one that had the biggest impact was how I was saving money. I know that this looks differently for each person, as I recognize that I was able to keep my job, didn’t have to move, or didn’t have to tap into my savings or look into getting loans. More than that, however, I realized just how much I was saving – this is also something that I’m hoping to integrate into my 2021 financial plan and strategy, so I wanted to share what those ideas were so that you can take those into consideration as well.

1. Spend more time DIY

I’m not the most artistically driven person of all-time, so I’m still a bit surprised that I’m writing this, but after the first few months of quarantine, I started to get creative. Instead of spending money at the salon for some “me-time,” I created a spa-like experience at home with essentials I found at the drugstore. It’s the same effect but massively cheaper. It also forced me to gain more independence in the kitchen – I’ve never been much of a cook, but since dining out wasn’t an option, I had to start getting experimental with the foods I’m used to, which was a huge money-saver as well.

2. Socialize differently

I didn’t realize how much money I was spending on a weekly and monthly basis until I couldn’t go out to socialize anymore. Between the pricey meals and cocktails and even the Ubers home if it was too late for public transportation, $30 here and $50 there definitely added up. Now, I enjoy making my own cocktails at home and having virtual happy hour with my friends. Not only is this great because I can experiment with my mixology skills and still see my pals, but I’m also super comfy at home and saving tons of money in the long run.

3. Reorganize your long-term finances

This is completely unique to your position, so what worked for me here might need to be tweaked to satisfy what makes sense for you. In March, interest on my federal student loans was paused, which meant that every payment I made towards my balance went to my principle amount, which meant that I was getting closer to a $0 balance faster. I’ve been able to make payments as the months went on, saving me hundreds of dollars in the long run. Interest is set to kick back in in the new year, but because I was able to whittle my balance down so much without the interest, payments will be much easier. If you have student loans or tuition payments, be sure to reach out to your lender or your institution to find out what your options are depending on your circumstances.

You have likely found your own financial silver linings in 2020, so it’s a great idea to take those learnings and find a way to implement them into your 2021 habits. No matter what the world looks like and how back to “normal” we’ll be, I plan on emulating a lot of these practices so I can get a better handle on my spending and overall financial well-being.