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Cost effective: you can get things off ebay a LOT cheaper if you're patient, don't bid too high (a mate of mine sees decent shape ebay models regularly going for more than retail occassionally, bidding makes people idiots) and don't mind stripping the paint off of models.
Buy battleforces instead of individual infantry squads + heavy weapons. Technically a slightly cheaper way to get bodies is just the 10-man infantry boxes, but IG are completely useless without heavy and special weapons, so get the battalions. Don't buy individual HW boxes, they are massively overpriced. If you procure some cheap 50mm bases, you can use infantry box bodies to make several HWTs for every team you've actually bought.
Vehicles - you should probably start off by buying a couple LR tanks. These give you more points for your cash than hellhounds or valkyries, and are really good against new/inexperienced players.
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