It's worth noting that these rules work well at higher levels, but can make a 2nd or 3rd level character overequipped compared to an equivalent character played from 1st level.
I noticed a little while ago that no one ever gets level 1 magical items in loot.
At level 1, the lowest magical item you are supposed to receive is a level 2.
For this reason, and because I like to give players a little punch, I let everyone start with a single level 1 item of their choice.