Clothing. Your baby is not in the least bit interested in the latest designer fashions so don't waste money unnecessarily. There be plenty of time for that in the coming years! Comfort and safety are the order of the day, so soft machine washable fabrics are a good choice. Go for cotton clothing rather than synthetic or wool as this is less likely to irritate your baby's sensitive skin. For the first couple of months babygros and vests are ideal. And maybe a cardigan, depending on the time of year.
Sleeping. To start with a baby can sleep quite comfortably in a baby basket or carry cot - it's not even unheard of for a baby to sleep in a drawer (as long as it has been removed from the chest or cupboard it comes from!). The mattress should be thin and fit snugly, and be covered in a cotton sheet. He must not have a pillow and cot bumpers are not really suitable either as they can stop air circulating properly resulting in your baby getting too hot. For coverings, choose cotton cellular blankets and don't have any fringes or loose ends on them as these could be a choking hazard, particularly as the baby gets a bit older.
Bathing and Changing. Something that is useful but in no way essential is a changing table. A plastic changing mat that you can use on the floor or on top of a solid chest or table is more than adequate. To start with your baby can be bathed in a sink but if choosing a baby bath with a stand make sure it is sturdy. Alternatively you can get baby baths which fit across your bath.
Travel. You will need a car seat if traveling by car. Do not buy a second hand car seat unless you can be 100% certain that it has never been in an accident. The damage might not always be obvious to the eye and it is essential that safety of the seat has not been compromised. Small babies love to be carried in baby slings when you are walking around as they get huge comfort from being able to hear your heartbeat and feeling the warmth of your body. When using a pram or pushchair you will need one that goes flat to begin with. If you want to save money then look for a buggy that can recline to a flat position. There aren't a lot of these around but if you find one it will last you from birth until your baby no longer needs a buggy.
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