Allow me to make this completely clear. Do not use toilet paper! I'm not saying that you were suggesting to use toilet paper. I'm just making absolutely sure that someone reading this realizes that, while they may look the same, they are not the same and cannot be substituted. Trust me, I've seen people try.
Also, I wouldn't try to use wadding over again. It may be possible, but not a real good idea. Don't spend money on the rocket and then cheap out on a part that's essential to recovery.
BTW, I find a good rule of thumb is to have at least a diameter thickness of wadding in it, no less than 1" though. Not so tight that it will prevent the chute from coming out, but tight enough that the ejection charge won't singe anything.