Inventory space and carry capacity are quite limited early on in Mount and Blade II: Bannerlord, but with a couple spare Denars you can easily expand it. I hope you like animals.
Inventory space is technically unlimited, but carry capacity will dictate what you store.
On paper your inventory space in Mount and Blade II is unlimited: you don’t need to buy pouches or bags to expand it. That said, your carry capacity determines how much you can have on you at a time. You can increase your carry capacity rather easily, but it will cost some coin.
New recruits will bolster you carry capacity, but you risk finding yourself suddenly over capacity after suffering heavy losses in a battle. Horses also improve capacity, but are expensive and run the same risk of death. Know what is cheaper than a horse and less liable to up and die? Mules. Mules exist to carry your assortment of crap around Calradia, and you can amass a small herd of them early on from cities and some settlements.
Even having 5 mules in the early game will allow you to perform larger trades, collect more items from looters and bandits, and ultimately make more money. Each mule expands your carry capacity by 100, which is massive in comparison to the paltry 20 you get from a single horse (which is the same amount you get from troops). The boost from horses is still nice, but you really want them around to increase the speed of your army and to support your cavalry. Invest in mules and you’ll seldom be disappointed.
