The best place to start your transformation is in your own closet. Look for items that no longer fit properly or are out of style, and instead of relegating them to the "donate" bin, think of ways to bring them up-to-date.

"Pant hems can be let down; shirts can be shorted and even made short-sleeved; skirts can be reworked into the newest styles," says Colin Megaro, a fashion stylist so in tune with the current economy he now offers a "Wardrobe Renovation and Closet Inventory" service. "Tailoring items can give you the current styles at a fraction of the store cost," he adds.

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