I love a good garage sale, flea market, or thrift store find. It's of course a hit or miss kind of thing and if you're really searching for a specific item(s) it can take time and patience. I tend to hit Craigslist for bigger, more specific items and browse the thrift store or flea markets for books, records, & clothing.
I'm lucky enough to have a decent thrift store really close to the house, walking distance in fact. It's small so sometimes the selection is limited, but they are really good about checking stuff and don't really put out clothes with huge stain or holes or really disgusting stuff. Jim and I have had some good luck in there with paperback novels for only a $1.00 and some random clothing items on their sale days where all clothes are only $1.00 (normally $3-$5).
Since we didn't find out whether our little Riesling was a boy or girl ahead of time I did very little shopping for baby stuff. However, I would allow myself to go crazy in the children's book section, at only $0.25 each how can you resist! Kids clothing is always only $0.50 so on a few occasions I found something really cute and took the risk on whether it would work for the gender, season, etc. Since Riesling's arrival I had little luck finding anything her since until recently. My theory is that a lot of newborn and 3-6 months sizes tend to get mucked up with poop and spit up stains, so they never make it to the rack. Once she hit the 9 month mark in clothing (and now 12 month!) I started finding some really great stuff.
Recently I got her 2 pair of sweats, a pair of leggings, a nice pair of pants in a toddler size, a little jacket, a sweater that might be cute for Christmas, a pair of jammies, and several cute tops....all for $0.50/each! Including this cute little top (leggings are from H&M).....