Ooo, I love charity shops!
They're my first port of call for building up my resources, fabric's (old bedding is great), wool, knitting needles, crochet hooks and craft books, are all to be found for the diligent rummager!
Which when you're short of funds for luxury items means you can still have fun! There's quite a good few in my town and I've also just found Orinoco - the scrapstore in Oxford, which has loads of crafty items which have been saved from landfill and a bag full of booty is only £2!
I got several balls of wool from here (all this odd bits of wool etc are excellant for practising with and no guilt about spending money on expensive new wool when the knitting/project turns out as a disaster!), one of them being an easy ball of double knitting in cerise so I'm knitting a beginner's hat at the moment - 'cat hat' pattern from the book that has taught me to knit - it's actually a childrens book, (Usborne - How to Knit) but it's nice and simple, good illustrations and tasteful easy projects to give confidence! (An mp3 cosy is next!)
I'l post photos soon, as always it lacks neatness, but I'm sure with practice I'll get better!
I've also started a stiched textiles course which I'll update about in ny next entry!
Oh and the bread making is going great guns, I haven't bought a loaf since!