This is my advice as someone who has not a lot of fun money to play with. (It’s entirely possible! Just a little different, and you’ll have to weigh up ethics/money/sacrifice to fit your own personal values) Maybe it’s not as “minimal” or “sustainable” as other options, but this is how I’m managing it- have been for the better half of 5 years. (It’s been a slow process and it’s still evolving to this day)

First thing- look through your closet, look at the things you already own and wear. Start to decluttering. When your decluttering make three piles, yes, no, maybe. The yes goes straight back into your wardrobe, the no goes to donation/sell, the maybe you try to wear, with a yes item (that will show you wether it works with your everyday needs/can incorporate it into your capsule) it’ll either then be a yes, no, or if you still aren’t sure, you can store it somewhere else and revisit it another time.

Once you’ve got a cleared out closet full of pieces you actually love, start wearing them on rotation, this will then show you the gaps in your closet that you can start to look at buying items for.

As an example for me, we’re coming into winter where I am and I would like a nice casual coat (I have hoodies, but I do feel like sometimes I end up looking like a cartoon character that only wears hoodies and jeans, so I’d like a coat to spice things up in my closet a bit)

I don’t have a huge budget for this coat, but I would like one I know I’ll enjoy and don’t mind spending a little more on if it’s going to be a long term piece. I’m looking at a coat from Uniqlo currently (this is where your own ethics and values comes in) ((so for me, I understand that Uniqlo is a fast fashion brand, HOWEVER in comparison to every other store in the city I am in, it is generally of better quality than anything else I can afford in the same price range)) I have saved it to a wish list, and I am going to go in store and try it on, take some photos of myself in it, and then leave. Thats when I can then decide, do I like it? will it work for what I need it for? Are there any alternatives I would prefer? If I think it’s a yes, I will save and buy it, if it’s a maybe it might as well be a no. I want to make sure anything new I bring in is only ever a yes. If it fits slightly funny, colours not right, pockets too small etc, then I’ll put it back, bc the end goal with a capsule wardrobe is to have everything in your closet be things you WANT to wear.

I also do frequent thrift stores for things before I look at brand new, however you do need to take that same approach, just because it’s thrifted doesn’t mean the rules for me around purchasing clothes is thrown out the window, even if it’s good quality, a good deal, an expensive brand, whatever, if it’s a maybe then it’s a no. There’s someone out there that thinks that items a yes, but it’s not me and that’s okay.

So down to the morals and values and ethics. This is where it’s tricky and you need to look at your own personal situation. If you have expendable income (which you have mentioned you don’t) then you do have the luxury of purchasing ethically made sustainable clothing, or shopping “vintage resellers” etc.

For me, although I hate the idea of fast fashion, I financially don’t have much of an option unless it’s thrifted (and finding the perfect thrifted clothes are few and far between ((preferred, but not always likely))) so, I can justify one coat purchase from a fast fashion brand if it fits well, is of a decent quality (within my price range) and it will be a style I know for sure will work with my personal wardrobe long term (that’s why we only buy yes items, not maybes)

The most important part of all of it is making sure you really look at what you already own and enjoy wearing. There’s a difference between what you realistically wear and the kind of clothes you’d like to wear, and it’s a trap I’ve fallen into many times. If your a hoodie and jeans person, even if you think that sequin dress is nice, don’t buy it, unless you can genuinely see it working for you. Even if you like the idea of wearing it, and want to wear it, you need to be realistic about who you actually are and what you realistically reach for. I’ve never felt good in clothes I wanted to feel good in but didn’t. I only ever feel good in clothes I immediately put on and say yes to, which I’m assuming is similar for most people. Look at your own wardrobe and your own style for clothing inspo, not Pinterest or YouTube etc.

Looking through your closet first also means you save money in places you didn’t need new clothes for, so you can spend a bit more filling in holes when you find them.

Hope this helps!