Hi! I hope you don't feel too judged by this thread. I htink I feel some of the judgement b/c I have a lot of things I don't 'need' either, but I really likel them! I am a WAHM and my DH WAH, too. We have a 5000sqft house like yours, and we each have seprate offices, ect., so I do get it! I really do! I am saying all that so you can qualify my answer
I think right now you need to look at the overall family picture and not at your indivudual businesses. You need to make the household budget work with what your DH is now bringing in. I am not going to say a lot about our situation, but I'll just say we have no idea how much (or little) we will make this year. No idea! We are going over business expenses and household expenses and trying to make it work. I think taxes are an important issue that hasn't been raised yet, is the 120K before or after taxes? What about your 25K? If you have to pay taxes on the 25K you make, at the rate you make as a family, that's about 1/3 of your income gone to Uncle Sam! That means you really aren't making much at all
Of your expenses, I see the accountant as very important, and I would suggest meeting w/ him soon to go over your proposed budgets and tax info for this year. Ours has said to be extremely frugal business-wise as well as household-wise. The goal is to make it thru this hard time, and still be there when it gets back good again
If I were in YOUR shoes, this is what I would do.
1. Get rid of the nanny except for 2 afternoons a week, and those afternoons are yours to enjoy.
2. Reduce the cleaning lady to 2x per month, you still get SOME cleaning, but it's cut in half.
3. Put your business on hold for now, and focus on the household budget.
I know this isn't what you want to hear, and I know that you really want to keep living the way you have been, but this is only for a short time! My DD#2 goes to kindy in 2010, too
We are strong women and we can do ANYTHING for 2 years. You can do this! It takes a lot of sacrifice, but you need to think long term and paying off that house is the best way to really get ahead in the long-run. Just think, in 7.5 years your home will be paid off and you will have a lot of extra wiggle room! If things get worse this year, you need to take these steps NOW, and preserve the cushion you have. Refinancing the house, and taking out equity to live on is a cushion that you have, and you need it to be there as much as possible for the uncertainty we are facing.
I know this is big for you. Feel free to PM me if you want. These are hard decisions to make, and we have to find a way to balance family, our needs and wants, and financial responsiblities at the same time.