If you don't want to buy new stuff all the time, it's really important to be able to turn clothes you don't want to wear anymore, for whatever reason, into clothes that you do want to wear. One of the problems that our family has is that we never dress appropriately for messy activities--as a result of our on-again, off-again home improvement activities (which will result, I think, primarily in lowering the future selling value of our house), we have purple paint (yes, an actual room of our house is actually painted purple) on not one, but two pairs of gym pants and one work shirt, and blue paint on one ringer tee. Now, the work shirt will need to be turned into a floaty summer dress for one of the girls, but the other clothing items are going to benefit from handmade fleece appliques. And by handmade, I mean stars that I unevenly sketch onto fleece and then cut out and sew over permanent stains with a zigzag stitch. Fleece is a nice choice, I think, because it won't ravel even if you don't stitch it well, and I like the way it stretches a little as you sew it--you know how I hate for things to look precise. So here are my favorite pair of comfy red pants, confined to the to-be-mended shelf for too many months because of its stupid purple paint stains, finally mended and made happy again:I think it turned out pretty great. The grey sweat pants, appliqued with an X, still need some work since, as Matt pointed out, the X is placed so as to seemingly mark a spot located directly between my butt cheeks...
Thin cotton T-shirts make good panties, and here's an example from Goodwill that is now Willow's favorite pair of panties, although she wears them backwards because she likes to look at the owl, not have it on her butt:
Here's a shirt from Matt's closet, a Christmas present from his mother, which was a little too fancy for a guy who wears only soccer or comic book shirts outside of work, and is now a pair of panties for me: