First, I never buy full price clothing and rarely buy clothing the first time it’s on sale. Instead, I wait for end of season sales and by clothing for the next year. This means that I can buy quality items for one or two dollars apiece and can get several bags of clothing for the price of one shirt at the beginning of the season. The clothes really do go that low, especially at The Children’s Place. (Get 15 Percent Off All Orders with Code HA99 at The Children’s Place through October 31st, 2009.)

Next comes the fun part. As the kids outgrow their clothing, I look each piece over to see if there are any stains or tears. If the clothing is not in good condition, I put it in a bag to send to the thrift store. If it is in good condition, I neatly fold it and put it in a bag for the consignment shop. The consignment shop I use gives me 50% of the money that the items sold for, but you can get a higher percentage if you shop around. Wee-Cycle offers a higher percentage for volunteers.

Wee-Cycle Provides a Great Way for Moms to Make Money Back on Kids' Clothes.

Finally, I use that money to buy a whole new wardrobe for next year and I start the whole process over again.

Now, of course, there are a few things you should keep in mind:

• Money from consignment shop sales is considered taxable income, just like any money you make from yard sales. If you make an actual profit, talk to your accountant about the tax implications of the additional income. (Make sure to ask if you are able to deduct the cost of the clothing you are selling from your profit.

• When buying next years wardrobe, be sure that you buy clothes that are going to be the right size. Sometimes, kids really shoot up in a few short months!

• Not all things sell. Don’t plan to get your money back on every single item.