Crystal at http://www.moneysavingmom.com/ posted a question that made me think. What would I do?
First and foremost, I would look for a way to make some extra income without having to spend money for childcare for Baby Girl. The easiest would be to care for a couple more kids during the day. I could possibly clean some houses and have a yard sale or 2 to help out.
I would reexamine the grocery bill. We would cut down to bare minimum. No soda, no snacks, no steak(more of a tragedy for my husband). Just the necessities.
Eating out would be cut down to only once a month(or less)
Look for ways to reduce our utilities. We already have the compact light bulbs, wash clothes in cold water, and a few other things, but our house is older and we are in the process of remodeling it.
We paid off our house but we still place that money in an account to be used this summer for remodeling. If came down to it, we could only repair things(like the roof) and fore go adding another bedroom.
Plant a garden to help with the grocery bill.
We currently have prepaid cell phones. 300 minutes cost $30 and they last both of us along time(me more than my husband since I stay at home now). The plan we have, the 300 minutes are good for 3 months(and it takes us that long to use them!) If you refill before they expire, they do carry over.
Cut down even more on driving. My husband is self employed and this is a necessity with his job(brick mason). He would have to do more bids over the phone instead of in person. I would possibly give up my beloved truck for a more fuel efficient car.
I have a grocery store about a half a mile from our house. The only problem is it is not the cheapest store in town. I usually only go there if I need 1 or 2 things and can't justify driving to across town(even though I drive to this store). Any trips would be made on foot(or send the oldest on her bike).
Stay on top of the household spending on clothes. It's not so bad with Baby Girl because the grandparents buy a lot for her but the older 2 are left to me now.
Cut back on spending on toys, electronics, and other entertainment goods. We have about 20 board games that we don' t play with very much anymore because everyone is on the computer, DS, Xbox, PSP, or plugged into a MP3 player(even me as I write this) This would also cut back on the utilities.
We have cut down on present spending for everyone besides our children. Relatives usually receive a homemade gift(which they love) and a bunch of pictures. This Christmas I am planning on making everyone DVDs with pictures, videos, and music of the kids.
I don't think I could pull the older 2 out of their activities. I'd rather do without Dr. Pepper, Oreo cookies, and the latest Stephen King or James Patterson book first.
I'm sure I could make some more changes if I had too. These were just off the top of my head