This advise is taken straight from backpacking and moutaineering sources. Being dry and warm keeps you from being hypothermic and then dead. Having the right combination of clothing can make a good time out of the worst weather.

Sweat that stays on you is a bigger danger than rain. Keep that in mind as you read through this.

Cotton should not be on your body, in any capacity. None. It will kill you.

Everyone has different income levels. The shopping list remains that same for cheap or expensive. Expensive gets you more levels of fabric comfort, and a few more bells and whistles, like zippered vents, nice colors, and gussets in all the right places.

The most important layer: The inner layer (against your skin)

This is commonly called Poly-pro (polypropylene) in outdoor circles. It's a synthetic layer in the form of long underwear. It comes in two weights - thin, and thick. Thin will warm you when you move only, thick keeps you warm while being static. There are a lot of options on the market for this stuff. Every outdoor company puts out various styles and weights. Under armor is basically a fancy version of polypro.

The pieces you need:
Long sleeve top
Full length pants
Socks, or liners
Gloves, or glove liner (same diff)
Skull cap, or balaclava

Cost - the army has a great selection of this. The surplus store will have these in a heavy weight layer, they are coyote brown (tan) and cost $9 for a top and $9 for a bottom. They are made beautifully. Glove liners run about $6. Socks liners are sold as dress socks, or boot liners. They are about $3. You want this stuff skin tight, but not binding.

At the surplus store you will see this fabric content labeled as 'nylon, or 'polyester'. You can beat the heck out of it, have it wet 24 hours a day, and you will be warm. It's primary function is to move moisture away from your skin into the next layer. It's a miracle fabric. If you stopped with just getting this layer, you would be 100% more comfortable than without it. If you wore the heavy weight surplus stuff with your bdus over it, you be comfortable down to 40 degrees wet.

The down side - the heavy weight version of this polypro is really great in cold and wet weather. When the sun comes out and you dry out, you will be sweating to death. Taking it off is a pain. It's why climbers opt for the lighter weight versions. Columbia Sports, North Face, Marmot, REI, etc, all have their offerings, and will range from $24- $90 a piece. Tops are easy to take off, bottoms aren't.

Another thing to know about polypro is that it retains odors really well. After 12 hours sweating in it, and it will stink to high heaven. That's just how it goes.

A tip for women- Silk is much better at doing the same thing as poly pro. If you have camisoles or other nice 'unmentionables' that are silk, you will be very happy. Just substitute in that piece of silk for the same piece of polypro.

Underwear - guys (and gal) don't wear cotton underwear. You will be cold and chaffed. The polypro will dump all of it's moisture right into the cotton underwear. BIG drag. Get some athletic stuff, like the underarmor, or other cheap knock off. Running or biking undershorts - anything synthetic. Silk is excellent if you've got it. Briefs are much better than boxers. Skin tight is the key.

Layer 2: mid layer - the insulation layer

For outdoor life this will be the layer over your polypros, and under your wind layer. The is almost always fleece. You all have a light version of polar fleece in your closet somewhere. Fleece pants are going to be unnecessary in anything but snow and sub zero temps. A fleece pullover or zipup is key to staying warm while staying static. I doubt that you will need it with the heavy weight poly pro. Some of the fancier versions of fleece now come with a wind block liner inside it (good). This layer is easy is regulate if you can unzip it. Again, you can beat the crap out of this, and live in it while soaked and you will be warm and dry.

Cost: you can get this in a jacket form almost anywhere cheap. You shouldn't spend more than $12. Surplus stores sell this layer as hunting wear. It will be too expensive. Hit up Costco, Walmart, Kmart, Gi-joes, Big 5, Bi-mart, etc. It will be generically labeled as polyester, or fleece, or micro fiber. "Polar fleece" will be the name brand and be more expensive. This is incredibly warm in even thin layers. If this layer is too bulky you will roast and not be able to move. Some of these jackets come with arm pit vents, which are great.

A really cheap alternative to the synthetics is wool. A surplus wool sweater will perform like champ.

Layer 3: Outter layer - wind and rain resistance

Your BDU's will be over all the above. You might want to substitute your outter la uyer of the fleece depending on the severity of the weather. BDU gear dries pretty fast and is made for this kind of use. It’s cheap, so use it. A pair of BDU pants is MUCH preferable to jeans. Jeans are cotton, and they won’t dry out fast enough to keep you warm, and safe.

The outter layer is always gortex, or some other similar fabric (raintec, aquatec, etc). Never get anything that is urethan coated. Urethan (plastic coated) will not let anything wick from under it, so you will stew in your own juices, and be dangerously soaked. Ponchos suck even tho they vent. Gortex is amazing and while is keeps out rain, more importantly it is wind proof. The greatest loss of heat from your body is from wind chill.

If it isn't raining, this will be overkill. If it's raining, and snowing, and windy, this layer is critical.

Gortex pants are really nice but often with a poly pro layer, are overkill. If you are in a torrential downpour with no end in sight, pants are important. If not, your BDUs will do fine. They dry fast. Legs aren't a big heat loss.

Cost: This will be the most expensive layer. However, no-name brand offer the same protection for a tenth the price. Columbia offers a cheap line. A hood is critical. You can find a no-namer for about $35. However, I'd lobby for spending money on this one. You will use it for the rest of your life, for every outdoor activity. Some of the surplus stores have none-issue gortex coats in woodland and marpat camo for about $100.

REI has a great line of gortex that range in price from $50-90

Hat: Most of your body heat will leave through your head. A hat is critical, even a crappy one. Boonies are nylon and are fine. A tight polypro or wool cap with a boonie over it is the best combo.

Socks: The rest of your body heat will sap out of your feet. Wet cold feet will drop your body temp like a rock. You MUST have a polypro liner, tight, covered with a cool or synthetic fleece sock. Without the liner your feet will just sit in the wet of the sock. The liner uses your body heat to pump the water out through the outter sock and then out through the gortex in your boot. Changing into a dry pair of outter socks half way through the day will bring sunshine into your life.

You can get a couple sock liners and a couple wool otter socks for about $12 at the surplus store.

The old trick of wearing plastic bags over your socks is only an short term emergency solution. What happens when you wear bags all day is wet, sweaty, uncomfortable, blister ridden feet. Waterproof boots is a much better solution. Pick up a pair of gortex lined combat boots from the surplus store. For $40-70 you have a pair of work/hiking boots that will last a life-time.

Gloves: The polypro glove liners will be almost all you need. They are thin, and tight, and fantastic. A pair of surplus wool gloves can go over them when needed, and off when not. $12 total. You can beat the crap out of them, and they will keep running.

Stay away from ski gloves or other 'thinsulate' hunting gloves. They have to many porous interiors and are not form fitting. They will soak through and get cold.

Too hot is almost as dangerous as cold - Excessive sweating can generate a lot of moisture and then when you stop, if you don't have a wind layer, you can chill fast, and go hypothermic. It happens to backpackers all the time. They don't want to stop and take layers off, so they just bear with it, and then get into trouble when they sit down to take break.

A tip for being cheap - Hit Goodwill and other second hand stores. All those ugly wool sweaters and hats people get for christmas have to end up somewhere. You can pick them up for a song. Staying warm on a budget isn’t a fashion show.