I am a WAHM. I have been a freelance editor for the past eight years; my main employer is an e-publishing company. I do not make a lot of money; mine is DEFINITELY a second income used for "fun" stuff, not to actually contribute to monthly household bills. I work so that my resume shows that I have worked while I'm home.
We decided when my daughter was about to begin Kindergarten that one of us needed to stay home. She is special needs/sensory issues, required a lot of dr appts when younger, and needs to have routine. Out of my husband and me, he was the one with the skill set that would allow him to make the most money to support us. He also would go batty staying home all day, working and taking care of a kid.
I pursued my love of writing and used that to parlay into editorial work. I'd already belonged to a national writers association since 1993, had belonged to a multitude of critique groups, and at the time when I was looking for a job, was actively working on some manuscripts (writing has fallen by the wayside as editing takes up a lot of time). The e-publishing company I work for was just starting when I got a job as a content editor with them; thankfully for me, the company is still going strong all these years later. I've since added a proofreading job with a smaller publisher (on par with the NYC publishing houses; been with them for 6 years now) as well as a professor, with whom I've been working since he started his PhD program; he has now graduated, and I helped him work on his dissertation/280 pp book.
In order to work from home, you have to have a specific skill set you can use that employers will want. You need to be realistic about how much money you can make, how many hours you can devote, what hours you can devote. When I started working from home, my child was entering the all-day school system; if any of your friends have young children, they will have to factor in the cost of daycare until the children are in all-day school. The job I do, I can do anytime, anywhere. However, it would have been impossible for me to keep up with my workload if I had to watch/run after/take care/ or play with babies, toddlers, or preschool children.
I am using the fact that I work at home to study for a new career as a nutritionist and wellness coach around my editorial work and will start taking a yearlong program in July. Why? Because my daughter is almost in high school now and I can finally begin doing what I really want to do and I can get an office set up. And freelance editing, unless you also toss in freelance writing, doesn't pay a lot. There are so many NYC editors who are leaving the bigger houses and setting up their own independent editorial services that finding jobs is very, very hard (people are going to go with a famous NYC editor instead of someone who works for an e-publisher).
For me, my love of editing is waning while my love of helping people get healthy through alternative means is growing by leaps and bounds. I have the opportunity to engage in education while at the same time I'm also getting paid work in, so it's the best investment I can make at the moment.