Any time you practice, you need some type of target. Specifically, you should have a target that will help you learn to deliver hits to an anatomically significant area. Whenever we are talking about handguns, there are two significant targets on the human body. These two areas are the chest cavity and the occipital cavity. The critical area of the chest is best represented by an 8" circle (high on the chest area) and the occipital cavity is best seen as a rectangle that is 3x5". (Click here for a more detailed explanation of target selection)

There are literally, hundreds of different targets you can choose from, some of these good, some are bad, and some are damn near perfect. Before I mention the commercial targets that appeal to me let me make a quick point:

If you place an 8" circle (like a paper plate) and a 3X5" rectangle (like an index card) on the wall of your dry practice area, you have all of the targets you really need to practice for mere pennies. I would recommend placing the 3x5" rectangle above the 8" circle with a distance of 5 3/8" between them since most people are shaped that way - unless they're managers (they tend to suffer from cranial rectal inversion). Another cheap option for realistic targets involves a paper grocery bag and an 6" paper plate. If you cut one of the large panels (front or back) and place the paper plate on the top third, you have a very cheap target that represents the thorax of the human body. (I use a 6" plate on this target because the actual bag panel is smaller than a typical torso)

Reactive targets are always beneficial as they teach to keep shooting until a threat goes away. The cheapest option for reactive targets that I know of are used bowling pins. When I was in Vegas, a local store sold a box of 10 for $5, satisfying the cheap requirement. Bowling pins are actually a little smaller than the ideal targets making them more challenging but very fun to shoot.