I buy everything second hand from kijiji. I used coat hooks hung on the wall and an 6 section closet cubby thing for shoes ($20 from Canadian tire) for the first year. I bought a cubby system from a daycare centre last yr for $50. It is in great condition, the centre just replaced them because they had some money from the government they needed to spend.

I think its easy to get carried away with our spaces and spend tons of money but there are tons of deals out there for free or cheap. You would not believe the toys I got for free when I started. Value Village is also awesome. You have to go pretty regularly though to find stuff.