This tip saves in a whole bunch of ways! By buying clothes that are multi-functional you will SAVE:
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Time by having less options.
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Money by getting two pieces in one.
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Space by having less in your closet
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The Environment by owning less pieces of clothing
Here are some great convertible items.
BCBG Cardi-Wrap - I've got one of these in green. You can wear the front, backwards or as a shall. Pashmina - one of the best staple pieces out there. This link shows 9 different ways to wear it.
I have been looking for a skirt dress and recently found these two. I like the style of this Victoria Secret one but I really like the Butter by Nadia. I saw this at a boutique in San Francisco not long ago and think I may go back and pick it up. If anyone else has found a good convertible piece, do share!

