I used a bassinet for both mine. DS was in it for probaby 4 months. He was a winter baby in a cold damp house so it was nice not having to get up for feeding etc as he was in the room with us.
DD was a summer baby, in an insulated house with a very loud squeaky breathing condition, so she was kicked out to her cot at about 6 weeks for our sanity.
Hard to say which I preferred. DS was a terrible sleeper, and DD is a perfect sleeper, but I think that has more to do with personality than anything I've done

DD also stopped needing her night feeds much earlier than DS.
As for bedding, I just used my cot stuff but wrapped it round lots so it was safe/tight, so no additional costs for us.
Edited by HuMum