rj, i know how you feel. my wife and i went from both of us working and each making decent money to having 2 kids and her staying home with them. cutting the income in half + adding 2 kids and a family vehicle payment sure does require some budget changes. even minus the extra expenses from her running to work, babysitter, babysitter costs etc., it's tough. one key thing we did though from the beginning was try to keep our bills at a level in which if only one of us was working, we could get by. and it's a good thing we did. yeah, it's tight with one income, but we've made it work. we did build up a savings when we were both working and have tapped it a few times, but nothing major. we've both given up some things ( like extra $$ for the shee, dammit) but the kids having mommy all the time is priceless for them, and for mommy. they are all much happier, which means dad is a lot happier too. the bills are paid, we never run out of anything, and the family is happy, but there's not much extra to go around. if it's too tight, you just have to decide what things are most important to have and what you can do without and live according to your income. oh yeah, and i avoid using credit cards as much as possible.