We cut our income by 1/2 when I started staying home. For us though, we knew this is what we wanted so we planned in advance. We purchased a smaller home, put lots of money in savings and live pretty frugally in general. So, when we lost that income we had to stop saving... unfortunately meant saving for retirement as well. But, we also don't eat out much, don't take trips, do not have the latest technology (like iphones and such). Five years later we still manage to have some of that money in savings, since DH has had raises we do have leases on new cars and we do splurge on things like cable since we find ourselves home a lot.
Growing fast... DD1 (6) & DD2 (4)
Forever loved, forever missed... Twin Girls with us for 19w3d 6/12/06