Your milage may vary, but I can tell you how we are doing it. My wife and I both work from home. I sold my half of my company in 2008 and have since been a free

Your milage may vary, but I can tell you how we are doing it. My wife and I both work from home. I sold my half of my company in 2008 and have since been a freelance designer and developer. My wife is a freelance editor. We have a baby-sitter / nanny who comes 4 days a week to help with my 2-year-old girl. Wednesdays are still "family" days and it's nice to go to the museums, the zoo, even just the grocery store during a weekday when they are not super-crowded. Of course my wife and I are interrupted throughout the day to help with lunch, naptime, diapers, story and play time, etc. The interruptions can be a bit frustrating when working against a deadline and I've occasionally rented a part-time desk in a shared office space to be a bit more focused. But we see a huge payoff in my daughter. We think as a result of being so responsive and close to her, she seems confident and emotionally secure, and very verbal for her age. And of course, being there has been an amazing experience for me, too. One downside is that she's not getting the same socialization she would in day care. But we do take her to various group activities and classes, and she starts a pre-school two mornings a week in the fall. She will get a good dose of it then. We're also not saving much money for retirement and occasionally dip into our savings, but we are otherwise making ends meet, paying off the mortgage and health insurance and still manage to take a few weeks vacation each year. Once my daughter is in school, we expect to ramp up the billable hours. In the evenings, I've even managed to put together a modest web app, which I hope to launch this summer.