Recent evaluation of some of my tees has me wondering about how people make decisions to demote clothing from everyday wear to other purposes.

I clearly recognize that some of my knits and knitwear no longer are great for work or public, but IDK wether I should purge or keep them from around the house wear, either as lounging or to cook, cleaning, etc. in. For the most part these are stretched and faded, but not necessarily with holes, etc.

On one hand, I am incredibly cheap and balk at the idea of throwing out things that still function on several levels. That said, my "home clothes" wardrobe tends to get quite large and makes me feel like I have lots in my closet when I really don't have much for work and public clothing. Plus, it also has created situations in the past where I never wear anything nice, stylish, etc. on the weekends, and the SO often sees me only in my worn out rejects. For example, I have tons of mens' and demoted women's tee shirts and wear them alot on days at home, but don't have any nice PJs, or loungewear and often wear nothing but old tees and jeans on weekends so long as I don't have an event.

So, do you demote?
If so, what do you demote? Do you use it? Do you have criteria? If so, do you have limits on the amount you keep? Do you still buy lounge clothes or other clothes to wear on casual days at home or to run to get the mail?