In order to backpack, you need proper gear or else you will not be able to survive. I generally get all my gear at the REI used gear sale.
This sale occurs once every month at every location and all the gear there is at least 50% off. The conditions of the items range from new or in barely used conditions to torn up with holes. REI sells all their returned items at these sales because they are not able to place them back on the shelves. I once found this sleeping bag for $30 (original price was $200) and it was returned because the previous owner did not like the color!
Of course, you need to have a membership in order to purchase these items. You can buy a lifelong membership for a one-time fee of $20.
Feel free to also check craigslist or consult with other travelers to see if they have any gear that they no longer use and would be willing to sell to you at a discounted price!
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