Observe others doing tricks with props and watch product demonstrations to discover the purpose of various props. Before you can make your props, you have to understand what they will be used for.
Make simple props such as scarves, ropes, rings and balls using odds and ends that you have around the house. Scarves can be made from any thin scrap fabric and ropes can be improvised with thick shoelaces. See what you have available to work with and use it.
Make a deck of cards with a hole in it by recycling an old deck instead of buying a new trick deck with the holes already cut.
Improvise levitation tricks using the thinnest clear fishing line available, or by looking for clear elastic in the jewelry section of a craft store.
Recycle old matchboxes, cigar boxes, bottle caps and other containers to use in tricks. You can use bottle caps to make a housing for a nails-through-the-coin trick.
Improvise tricks using the props you have. If you're doing a sleight of hand trick and want to change one thing into another, use whatever is on hand. Whether you're changing a penny to a quarter, an American penny to a Canadian penny or a salt shaker to a pepper shaker, you can always amaze your friends.
Learn some tricks that don't rely on props. A magician is only as good as his skill, not his magic props, so learn tricks that can be done on any occasion and with ordinary objects that you can borrow from spectators. For example, make a person's watch disappear (but make sure you return it to him).