My wife and I had been planning for her arrival for quite a while -- we bought supplies and shuffled our living space around long before she was born a couple of weeks ago. (Ok -- actually it was my wife that shuffled around the living space and did up the nursery, for I am color blind and would have left all of the walls in the house antique white.) We were set for her arrival as far as "stuff" was concerned, mostly.

Assuming that this prospect of huge, mind-blowing expenses didn't matter and you decided to have kids anyway (like we did!) then we're in the same boat and probably want the best for our children. "The Best," however, does NOT always translate to "spare no expense" and there are lots of ways to spend less on baby care without sacrificing your child's health or development.

• Breastfeed if at all possible. Try everything you can to do this, and be patient and ask for help, because it's not always an easy start for the mom. La Leche League International can be a good place to go if things get really frustrating; one of my colleagues was a member and was extremely supportive and knowledgeable. It's a lot of work (as we're finding out!) but it's the best food that the baby can get. Breast milk kick-starts the baby's immune system, possibly reducing sickness (and saving money on medical bills) for the rest of her life. And -- it's free!
• Using cloth diapers instead of disposables is lots cheaper. We got some cloth diapers from SoftClothBunz.com. They also give a good breakdown of the cost differences.
• Do I recommend home delivery of your baby? Not after I saw what can go wrong! This is a money saver that I absolutely do not recommend. Even with regular pre-natal care, things can go south during the delivery without warning. We were so glad to have the trained staff right there. They earned every penny.
• Hit thrift stores and garage sales for clothes, toys, baby gates, cribs, etc. We got a full box of baby clothes (about 60 outfits) for $5 at a garage sale. We got a high chair, a vibrating cradle, and a swing for $12 apiece. Baby monitor for $5 at another thrift store. A baby gate for $1. Just check to make sure they're in good, safe condition.
• But stay away from used car seats. It's hard to tell whether they've been in an accident or not, and most manufacturers recommend destroying the car seat if it has.
• Even better, accept baby gifts from friends and family! Accept everything you can, even if you have three of them already. Chances are they wanted to give you something, and then you can pass it on to the next proud parent! Or trade for something that you don't have.