Don't be a fly - by

One great thing about fly fishing nowadays is the accessibility. Even the most modest of budgets can get a workable set up. There are $39 packages out there. Are they any good? Sure. Are they really good? No. At least not compared to a set up up that is several hundred dollars, but it is enough for someone to get on the water, catch fish, learn the fly fishing game a bit.

You'll buy more and better equipment over time. You don't have to work at it. It just happens.

I have $20 Cahill rod from Cabela's. It is an 8wt I bought as a holdover/beater rod I could abuse while saving and searching for a better one. Turns out it does pretty dang good. Casts surprisingly nice. Can it hold a candle to $500 or more rod? Of course not. If you are beginning though you can be sure it will meet your needs as you develop.

Where should you spend and where should you save?
-Inexpensive rods are getting surprisingly good.
-Avoid the bottom of the price range for reels. The cheap ones have poor drags, are noisy, fall apart jam and tangle. For $50 and above you can a decent reel. Look for a sealed drag and a smoother action. You can feel the quality here. If you have to go cheap, it won't last, but it will get you going.
-BUY GOOD LINE! You might think that all lines are basically equal. They are not. Good line makes everything else work better. Cheap line makes everything else worse. Spend $10 or $20 more. Think of it - it has an effect on every cast. Over hundreds of thousands of casts it is a small investment against a big return. Your casts will be further. Your presentations better.
-Tippet schmipet. A tapered leader is an advantage. A looped tapered leader is even better unless you like nail knots.

I firmly believe that mono is a serviceable if not best practices option for larger flies where less technical presentations are okay. Inshore predator fish are drawn by a splash. Note the success of popping cork rigs and large splashy plugs, buzz baits and other contraptions that ....... work.

Try different stuff. Break the rules. Those folks who turn up their noses at using mono for a leader and tie a five stage taper by hand - well good for them. Heck, throw a fly reel on your spinning rod if you want. It won't be ideal, but I bet you'll have fun and if the fish are biting you you will catch them right along with the guy next to you fully rigged out in Sage, Orvis, Lamson, and all the top of the line stuff. That's all great too. It's luxury more than necessity though.

Point is - budget is no longer a reason for anyone to be a fly-by.