When considering being a stay-at-home mom there are several things you want to look at to see if you can make it work. Look at your current spending to see what you can cut back on. Also, look into places like Cosco and Sam's Club for some of your staples but go for a day as a guest to check out the prices to see if using them will actually be worth the money for the membership. We've found that between the photo processing costs we have, the diapers, wipes, and (if you use it) the formula (especially if you use their brand diapers and formula -- if you choose to formula feed... breastfeeding is definitely cheaper still), the cost of the membership is well worth it. My 2-1/2 year old son is a little cheese-aholic, also, which makes it worth it. The next thing to look at is stay-at-home expenses versus work-outside-the-home expenses. If you continue to work outside the home, add up the cost of your wardrobe, commuting, daycare, lunches out (if you tend to eat out), and any other expenses you would incur from working outside the home. Subtract those expenses from your salary after taxes. This will give you an idea of what you will actually be bringing home when working. I (and my friend, also) both found that working outside the home, I would be bringing so little home after the expenses that it wasn't worth it.
Since being at home, I've found a few ways to work and volunteer outside the home that still allow me to keep my work skills honed and give me experience that is pertinent to my resume. I found a part-time job that I can do from home (I design webpages for 2 different non-profit groups, a newsletter for another, and do some occasional administrative tasks as needed).
As for ways to help save money. Look at what you can cut out. Look at what you would be saving by staying home (wardrobe, commuting and daycare are big ones). Then do things like watch sales and check which grocery stores offer you the best deals. Look into warehouse clubs but only join if you will save more in the year than the cost of the membership (which is usually about $40). Another thing we do, we buy the our meat at the warehouse club and then separate it into freezer baggies by how much we would use in a single meal. It saves us a lot of money on the meat.
Watch for clothing sales for you and the baby. Usually, you can catch some really good clothing sales at the end of the season. So at the end of summer by the size of summer clothes you think your child will be in for the following summer. Also, a lot of first time moms and dads don't want to hear this, but look at second hand clothing stores. There is a wonderful chain in the Pittsburgh area called Once Upon a Child. They are very picky about the clothing and toys they take. The thing about baby clothes is that they outgrow them so fast that they are usually very gently worn. It is worth checking out a few of the second hand stores because you can find beautiful clothes in very good (sometimes new or pristine condition) for a fraction of the cost. Also, if you have a friend with an older child, you could ask about borrowing their baby clothes and returning them when you are done.
Know that no matter what you decide, it will be difficult. Being a stay-at-home mom has meant for us that sometimes (especially when my husband was laid off after 9/11) the budget gets really tight. But being home with my kids has been worth it. Also, it hasn't been much tighter than it would have been with me working full-time and paying for daycare and a work wardrobe.
Congratulations on your impending little one and good luck with whatever you decide. One final thought, whichever you decide, look into different Moms groups in your area. Having other moms who are going through or have gone through some of the things you are about to experience can help immensely. Especially if you decide to stay-at-home where adult conversation can sometimes be scarce. =)
