On a very tight budget, the most practical choices are:

1. Continuous lights: Clamp lights with daylight CFL bulbs are a popular low-cost option. They’re easy to position, use less power, and run cooler than hotter tungsten-style lights. They can work well for both portraits and small-object setups.

2. DIY light tent/light box: Rather than buying one, make a DIY light tent. This is inexpensive and well suited to product shots.

3. Simple flash setup: A budget manual strobe/speedlight (for example, a Vivitar 285-type unit) plus a stand, umbrella bracket, umbrella, trigger or sync cable, and a reflector can be a stronger portrait setup. Use the flash as the key light and a reflector for fill.

4. Work lights: Halogen work lamps are cheap and bright, but they produce a lot of heat. Fluorescent work lights are generally nicer for indoor use because they run cooler.

If your priority is portraits, a single flash with umbrella plus reflector is likely the most versatile. If you also want a light box for small objects, clamp lights with daylight CFLs and a DIY tent are the cheapest way to cover both uses.