Although your nesting instincts will kick in big time, resist the urge to buy everything for the baby new. Yes, some baby stuff does get covered in vomit and poo, but lots is barely touched/worn/used as they grow out of stuff so fast, and as each baby is different some things suit some and not others.
I've been selling my baby stuff at some nearly-new sales recently and you can pick up good baby clothes, for example, for 50p-£1 an item. White babygros a a good plan as you can wash them hot. For girls, you can then stick a pinafore dress over them and you're sorted. Boys don't need anything else!
Don't buy a cot yet, the baby won't need it immediately anyway. You can definitely buy one second-hand. My DC1 actually slept in a travel cot (which we got for free from a cousin) with a cot quilt for padding for ages, and then I bought her an Ikea cot from eBay for £20.
Baby/nursery furniture is much more expensive than normal furniture but you can find perfectly suitable stuff in normal ranges so don't be conned! Ikea stuff is fab.
Let it be known amongst friends and acquaintances that you are open to receiving second-hand baby stuff. One colleague gave me bags and boxes full of stuff for free, just because she wanted rid of the stuff. Including a Baby Bjorn baby carrier, for free!
Congratulations and good luck!