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How To Build A Capsule Wardrobe On A Budget

If you like to stay up-to-date with fashion trends, you’ve undoubtedly seen the phrase ‘capsule wardrobe’ popping up everywhere lately! Part of the minimalist lifestyle movement, a capsule wardrobe makes it easy to keep your closet organised while maintaining a look that’s timelessly stylish.


In this guide, we’ll explain why this wardrobe approach has gained popularity and provide tips for making a capsule wardrobe that doesn’t break the bank!

Blond woman wearing denim jacket and pink fashion accessories

What is a capsule wardrobe?

Looking for a straightforward capsule wardrobe definition? Basically, it’s a pared-back collection of your most versatile clothing items. You should aim for most of the pieces of clothing to be interchangeable, so you can mix and match with ease.


And of course, everything in your capsule closet needs to be something you love to wear! You can switch the items around each season to ensure your style game remains strong in all weather conditions.

A brief history of the capsule wardrobe

The term was coined in the 1970s by Susie Faux – founder of London’s iconic fashion boutique Wardrobe. Faux’s philosophy of ‘personal packaging’ underlies the concept of a capsule wardrobe, meaning you can better embrace your own unique sense of style with a smaller collection of clothes. All you need is around 30-40 high quality items to look great and feel confident.


In recent times, the capsule craze has been revived – in part as a response to the environmental impact of the fashion industry, and also because of the growing interest in minimalism as popularised by the Japanese author Marie Kondo.

The benefits of a capsule wardrobe

A capsule wardrobe makes it super easy to create a variety of great looks. Here’s why so many people are embracing this clever trend:


  • Save time: With a smaller selection of clothes to choose from, you won’t need to waste time every morning searching for something to wear.
  • Save money: By reducing your clothes shopping to once per season, and only buying things you truly want and need, you’ll end up with a bit of spare cash – always handy!
  • Better define your style: The exercise of creating a capsule wardrobe provides an opportunity to gain insights into your own style. It helps you to create a clearer picture of what works for you, giving you a greater sense of self awareness.
  • Get more enjoyment from your wardrobe: When every single item in your cupboard is a guaranteed winner, you’ll come to love getting dressed, rather than feeling overwhelmed or uninspired.
  • Better for the planet: By purchasing fewer clothes, you’ll reduce your impact on the environment. The manufacture of new clothes uses a lot of resources, plus it can put harmful chemicals into our waterways.
  • You’ll be able to afford better quality clothes: By embracing a ‘less is more’ mentality, you’ll be able to spend more money on the clothing items you do buy.

woman legs out of a pile of clothes on the floor

What should a capsule wardrobe contain?

Ready to get started? In these next sections, we’ll go through the basics of a capsule wardrobe, ranging from workwear through to casual essentials. We’ll also give you some capsule wardrobe ideas for transitioning through the seasons.

Basic tees & tanks

Everyone needs a good quality tee in their capsule wardrobe as a layering piece, or paired with stylish bottoms of your choice. When you begin the task of deciding upon your capsule wardrobe items, tees and tanks should be your first priority – because everything else can be built out from there.


On hot days you can wear a tee on its own, and during the cooler months you can add layers with a collared shirt, knitted cardigan or a tailored jacket. In the spirit of minimalism, if you have more than one t-shirt in the same colour, keep one or two favourites, and donate the rest to charity.


Our top pick is the UNIQLO 100% SUPIMA Cotton Crew Neck T-Shirt, which is made from one of the world’s finest cottons. Soft and luxurious, Supima retains its colour and shape better than regular cotton tees.

Dresses & jumpsuits

When it comes to choosing dresses and jumpsuits for your capsule wardrobe, sleeve length and colour will be your two biggest considerations. Short sleeve or sleeveless dresses made from breathable fabrics like cotton or linen are best, since they’ll provide the most wear throughout the year. The addition of a cardigan or blazer can create a look that’s more dressy, while providing warmth on cooler days and nights.


In terms of colour, dresses in neutral shades are usually best for capsule wardrobes. Everyone needs that one ‘little black dress’ for formal occasions, and dresses in fawn and cream are great for relaxed summer weekends. Choose a length that makes you feel comfortable and attractive – a mid-length skirt is a good choice that looks flattering on most.


Although neutral colours in block shades offer the most versatility, there’s nothing wrong with creating a colourful capsule wardrobe. Just make sure that the colours you choose complement each other so mixing and matching is easy and stress-free.

Blazers & jackets

A great blazer can work wonders for any outfit. Worn on top of a t-shirt and jeans, you can rock the smart casual look with style and flair. Here are some tips for finding a blazer to add to your capsule wardrobe:


  • Divide into seasons: Heavy woollen coats can be stored separately during the warm months, and vice versa with light linen jackets during winter.
  • Choose a versatile colour: Make sure you choose a blazer that looks good with your other wardrobe items. Neutral shades such as black, off-white and grey are reliable winners that tend to look great with everything.
  • Casual vs formal: If you have an office job, a tailored jacket is a must-have. Alternatively, if you prefer a more casual style, look for more everyday jackets made from knitted fabrics or linen blends.
  • Mix and match: A pencil skirt looks great with blazers, as do fitted jeans and neat slacks. Experiment accessorising with a leather belt, colourful brooch or a sophisticated silk scarf.

Shirts & blouses

Shirts and blouses play a foundational role in creating a capsule wardrobe for work. As a staple, everyone needs a classic white button-down shirt – they’re perfect not just for professional situations, but for stylish nights out with friends.


Your choice of sleeve length will depend on the season – as with jackets, you will probably need a couple of long-sleeve shirts for your winter wardrobe, which can be exchanged with short-sleeve blouses during summer.


When it comes to blouses, a bright pop of colour can really make your outfit come to life. In addition to your neutral basics, consider adding a couple of feature blouses in bold colours and patterns to suit your skin tone.


Our top pick is UNIQLO’s Premium Linen Long Sleeve Shirt. Perfect for layering all year round, this shirt offers superior breathability, comfort and ultimate quality at an accessible price point. Plus, the Women’s Premium Linen Shirt is made exclusively from European Flax®, meeting the high standards* of the Alliance for European Flax-Linen and Hemp.

Sweaters & jumpers

There’s nothing better than a soft, comfy sweater to keep you cosy when it’s chilly outside. Plus, a good quality jumper will keep you looking stylish, especially when paired with a flattering pair of jeans and some Chelsea boots.


For spring and autumn, lightweight sweaters made from cotton are a lifesaver, providing warmth when the weather is gloomy, and breathable comfort when the sun’s out. If you’re planning any outdoor winter adventures, you’ll need a more heavy-duty jumper made from materials such as lambswool or cashmere.

Pants

A few pairs of well-made pants are also essential for your wardrobe capsule checklist. When making your selections, look for pants that fit well at the waist and allow enough give for you to move around comfortably.


For your summer capsule wardrobe, choose light and flowy pants made from breezy cotton and linen blends. Warmer wool or polyester trousers are better choices for the winter months, especially when paired with a warm jumper or quality long coat.


Looking for a great go-to pair of pants to keep you comfortable in style? The Pleated Wide Pants from UNIQLO went ‘viral’ on TikTok, and have been praised for their high waist and flattering cut. Made from wrinkle-resistant polyester and rayon fabric, these pants have an elegant drape and a luxurious soft touch.

Denim jeans

Last but not least, no wardrobe would be complete without jeans. Denim is famously versatile; suitable for casual weekend outings or dressed up with a blazer for parties, dinners, concerts and more.


Here are some important things to consider when choosing jean styles for a capsule wardrobe:


  • Dark, medium and light washes: Having a selection of denim washes in your wardrobe gives you more styling options. Dark jeans are good for dressier looks, while light denim gives off more of a casual vibe.
  • Choose a waist works for you: If high-waisted jeans make you happy, go for it! Similarly, if you prefer a lower rise, that’s totally fine – it’s your wardrobe, so you can make the rules.
  • Skinny vs straight: It could be a good idea to give yourself two options here – skinny jeans for parties and gigs, and looser-fit straight jeans for shopping and relaxing.
  • Let go of duplicates: In keeping with the spirit of a minimalist wardrobe, there’s no need to have multiples of the same thing. Either put the extra pairs into storage, or donate to keep your cupboard uncluttered.

How do you build a capsule wardrobe on a budget?

We totally get it – modern life can be exxy! The good news is a capsule wardrobe can help to keep your costs down. Because you won’t be impulse buying unnecessary clothes anymore, you’ll save money in the long run. Plus, it’s easy to create a great capsule wardrobe on a budget. Let’s explore how!

Start by doing a deep cleanse of your wardrobe

Ready, set, cleanse! Your first step will be to conduct an audit of your existing wardrobe to see what should stay and what should go. To do this, it’s simply a matter of opening up your cupboard and pulling out anything that falls under these categories:


  • Doesn’t fit properly
  • You don’t like it anymore
  • Duplicates – anything that’s the same style or colour to another item
  • Doesn’t flatter your body type
  • Doesn’t match your skin tone
  • Anything that’s stained, ripped, damaged or showing signs of wear-and-tear

Be honest with yourself: do any of these items ‘spark joy’, or are you just hanging onto them out of inertia or nostalgia? Chances are, anything that falls under any of the above categories won’t be missed after it’s gone.


Another way you could approach your wardrobe cleanse is to turn all your coat hangers around to face the opposite way. Every time you wear and replace something, turn the hanger around the right way. After a month, you’ll be able to see which items are your essentials, and which can be culled.

Make a plan for your capsule wardrobe

Before you go shopping, sit down and make a capsule wardrobe list. Take some time to think about the colours, styles and fits that make you feel most ‘you’. Good things to consider include:


  • Colour scheme: Which colours suit you best, and which supplementary colours work well with this scheme?
  • Fit: Do you prefer clothes that are loose and flowy, or do you like to rock a look that’s tighter and more tailored?
  • Fabric: Does your skin prefer natural fabrics such as cotton, linen or wool? Or do you tend to gravitate towards synthetic blends?
  • Formal or casual: Do you spend a lot of time in the office, or do you work from home most of the time? Also, do you spend your free-time at concerts and dinners, or do you prefer to hang out with friends in more low-key settings?

Once you have a firm understanding of your personal style, you can start to plan your capsule wardrobe. Make a note of items that you already own and love, and then make a shopping list for items that are missing.

Change your shopping habits

It’s very often the case with clothes that whenever we buy things on impulse, they don’t end up getting worn very much. That’s because spur-of-the-moment decisions don’t tend to address what you actually need.


If you make a list of what you wear the most, and conduct some research to see where you can get the best prices on these essential items, you’ll end up saving money. It’s also worthwhile looking into cashback programs such as Cashrewards – where you can shop for quality fashion at competitive prices, and receive a nice cashback to boot!


Another way you can raise funds is to sell the clothes you no longer want, so you can then put this money to investing in well-chosen pieces that will provide a lot more value and enjoyment.

Set a budget

Setting yourself a budget is a great way to avoid overspending and going overboard with shopping. Try to pick a reasonable amount that you’re willing to spend on clothes every season, and try to stick to this budget.


By taking a look at the variety of fashion available online, you can easily find great prices on items that you might have spent more on if you made an impulse purchase at the shops. It can also help to bookmark products that spark your interest, and then sleep on it before you make a decision. Something that might have seemed amazing at 9pm on a Friday night after a couple of wines might not look so flash in the sober light of day!

Look after your clothes

Your capsule wardrobe will work best if you choose high quality items and you look after them properly. Here are some tips for caring for your clothing:


  • Pay attention to ‘dry clean only’ labels.
  • Similarly, check the label to see if the item requires a delicate wash cycle, and invest in some laundry bags to keep your clothes protected while in the washing machine.
  • If you have the option of drying your clothes on a clothesline, this is usually a better option (although be mindful of drying in direct sunlight, as this can cause your clothes to fade).
  • Hang your clothes carefully so they don’t get stretched out of shape.
  • Try to avoid wearing your ‘good’ clothes while you’re running around, gardening or cleaning the bathroom!
  • Be mindful of staining – if you’re going out to dinner at a spaghetti restaurant, perhaps you shouldn’t wear your favourite white blouse.

Where do you buy capsule wardrobe basics?

UNIQLO is the perfect place to find everyday basics to create capsule wardrobe outfits, without compromising on quality or style. With casual essentials that are extremely versatile and great value for money, UNIQLO makes it easy to dress well throughout the year.


Yuko Oka, Senior Merchandise Planning Manager, UNIQLO Australia, explains why UNIQLO’s fashion offering is perfect for building a capsule wardrobe:


The essence of a ‘capsule wardrobe’ quite similarly embodies UNIQLO’s LifeWear philosophy - - which is the guiding standard for everything we do.


Ideally, all capsule wardrobe items should help eliminate the stress around decision-making when choosing your outfits, each be crafted with thoughtful detail, a beautiful addition to any wardrobe and effortlessly paired with one another, and most importantly be of a high-quality to be worn this season and many more seasons to come.


The perfect capsule wardrobe, like our LifeWear, is thought through with your life’s needs in mind.

Smiling woman wearing sunglasses posing in front of a hanger full of clothes

Discover UNIQLO’s signature lifewear

This is a sponsored feature from UNIQLO Australia, a global fashion retailer offering clothes that are simple and essential yet universal. UNIQLO’s clothing collection has been designed so people can freely combine items with their own unique styles, in any way they choose, every day of the year.


Even since UNIQLOs humble beginnings in 1984, UNIQLO has continued to aspire towards excellence in quality, design and technology, and has managed to achieve as such. But even so, UNIQLO still strives onwards and upwards. Not in pursuit of perfection, but in evolution.


UNIQLO is more than just a clothing brand, but a way of thinking. A steady consciousness of constant change, diversity, and the challenging of conventions.


Shop for new items to complete your capsule wardrobe with UNIQLO deals at Cashrewards.


Cashrewards does not verify any claims made by a merchant. Representations appearing in this article are made by the merchant and not Cashrewards.