Buy ugly afghans and dis-assemble them to reclaim the yarn and make something you like. It's called UP-CYCLING. You can do it with sweaters also... I had a heck of a time figuring out how to get it started though. 'Learn by doing' project.
Reclaim wool and cashmere that have been stained or holes in them. If the sweater is lovely and the defect is in the arm, cut out front and backs for a pillow - cashmere pillow!
Another way to get yarn cheap - yard sales, thrift stores. Place yearn skein in an old pair of ruined panty-hose leg and wash/dry if you feel that it's dirty.
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