Lyn, I'm not there yet, but I do recall being there. I have only *just* (yesterday!!) managed to understand what went wrong and why, and thus (since I apparently insist on putting the cart before the horse) have also arrived at what did work/will work for me.
I looked back to the years when I was satisfied with my style --- with the way I negotiated with fashion and with the size of my wardrobe. It wasn't as though things were perfect. There *were* holes, minor niggles, a couple of orphans that were purchasing duds or tailoring experiments gone wrong, maybe a couple of fantasy-life garments. But on the WHOLE, I could (1) dress for most occasions in life and (2) for all seasons; (3) never be at an ENTIRE loss for what to wear for the more everyday occasions, because something or other was in the wash or drying on the line. Also, 90% of the time, despite a lot of nail biting and bellyaching, I actually could put together a formal outfit for an interview or special occasion without having to run out and buy something new.
For me, the biggest problem has always been balancing variety (I get bored fast and I'm pretty moody) vs total recall (I realized that in the phases where I was on top of my closet, so to speak, I can actually still recall most of the garments I had perfectly well --- decades later). So I don't know if this is of any help if the 'sensitive points' of your wardrobe and style are different, but I found that in order to be comfortable with a one-for-one swap:
# I wanted duplication of 'stress spots' or bottlenecks that are especially versatile --- for me these were white or off-white Indian leggings, straight-leg jeans, and black shoes. In fact, triplicate was even better; but at least a duplicate made for relative peace of mind
# I wanted (and this speaks to Suz's point) not just at least 3 tops to each bottom, but also at least 2 bottoms to each top
# However, I actually personally *preferred* each specific top and bottom with a single specific partner most of the time (a habit I'm still trying to break), except the very neutral jeans and leggings
# I wanted ALL my clothes in one place (one closet, one chest of drawers, one suitcase or bag --- as the case may be) or I felt a little frantic and overwhelmed.
# I wanted 5-6 different accessories for each outfit --- to swap out, not wear all at once! (I actually had lots more, being a bit of a magpie)
# I also needed 2-3 default accessories that went (or at least didn't fight) with everything I wore for everyday life (to university or to work, depending on what was topmost at that point) --- so a default pair of earrings, a watch, a bag, a hair clip I didn't need to switch out daily.
# Even with 'weaker' seasons, I had a limited --- sometimes teetering on the edge of the laundry limit --- but sustainable set of garments. (My 'difficult' seasons were the rains and winter --- the first simply overwhelming because rainboots and raincoats in my size and style simply did not exist locally; the second because I did not have the sufficiently structured pieces I preferred because those too were hard to find locally in my kind of fabrication and style or within my budget. However, I still had at least ONE make-do option, rather than a complete black hole!)
# For the weaker seasons, I had to have at least 4 tops, 2 toppers and 2 bottoms that could be repeated, as well as at least 2 sets of shoes to not feel desperate or challenged. For the stronger seasons, I preferred to have 10-12 tops in regular rotation with 6-7 bottoms, 3-4 dresses, and at least 5 pairs of shoes (toppers are not the norm for me, most of the year, but I liked to have typically 3-5 options).
To your specific questions:
(1) Yes, I treated an empty hanger as a 'wardrobe credit' of sorts --- but not necessarily on a one-for-one basis. Sometimes the 'empty' represented a damaged or worn garment to replace; at other times it represented a style or idea I'd outgrown, so those might be replaced with something very different indeed.
(2) Well, I always had a very specific budget for sales based on: what I was earning at the time; psychological comfort with what I was willing to spend on clothes at one go or per item; plus what hobbies and studies demanded of my budget at specific times of the year (term fees and book fairs). But within those limits, I've always found it easier to shop the sales rather than full price, because I prefer certain fabrications and styles that I can't really afford regularly at full price (there is no thrifting to be had here). So yes, I'm mentally geared towards a bunch of sale purchases (including lucky finds) twice a year, plus a few things bought at full price twice a year (my birthday and the major festive season are conveniently 6 months apart). I didn't buy clothes every month, so I'd usually have a few months' budget saved up, and a little 'credit' for next month to borrow on if something spectacular jumped out at me. And as for where they went in, if there weren't enough empty hangers, something DID have to come out before I went shopping again --- because I would *not* be buying new hangars! (I gave myself 2-3 months to actually purge, since I tend to be really sentimental about my clothes, so I'd tell myself 'last season for this top'...)