Thanks to Jenny Raby for this Frugal Baby Tip!
I asked a very similar question myself and got this answer - make a triangle soaker! It's kind of a wrap hybrid
Start with ch3, then turn and sc across, increasing one st. Repeat rows of sc across, increasing one st until soaker is desired width (easiest is to measure your babe's waist, this will be your width). Finish off. Fold point of triangle up to the middle and sides in - sew (with yarn/yarn needle) together, leaving desired leg holes (measure your babe's thighs here).
Then all you need to do is make a waist band and enclose the leg holes. Easiest is to crochet around the openings with a dc for the first round, join. Then you can do a number of things - a fpdc, bpdc pattern or even a front loop/back loop dc pattern for second round, finish off. Make a very simple drawstring by ch to your desired length. Weave into waist band.
Lanolize, and voila! Simple, easy wool soaker. You can make it look more appealing by varying your yarn colors, yarn weights/textures, or even embroider a cute pattern over the top.