This whole project cost me around $60, but if you can get your hands on the guitar bits (pickup, tuning pegs, pots), it'd work out even cheaper.
Step 1: Things you'll need
You'll also need:
- a single coil pickup
- three individual guitar tuning pegs
- a couple of chunks of hardwood for the bridge and nut
- a piece of thin wood for the volume and tone mount (I used a section cut from a cigar box lid)
- input socket for a guitar lead jack
- 10k pot for volume
- primer and paint
- some sticky-backed fabric letters
Step 2: Drill holes
I am left-handed, so I drilled the holes for the tuning pegs at the right-hand end, with the open lid closer to me, so the lid can act as a hand rest while I play.
Make sure you drill the holes far out enough that the pegs will be able to be turned freely, but also remember that you will need to fasten then inside, so leave enough space between the stem and the wall of the case.
I fastened mine in using large nuts.
Then drill a hole for the jack socket at the other end of the box, facing outwards.