I don't think you are crazy at all. IMO it is important to find balance between what your heart wants and what your head says, which is exactly what you appear to be doing. Should you rack up thousands in credit card debt, throw caution to the wind, quit your jobs and decide to follow your heart's desire to be circus clowns instead? Probably not the best idea, especially if you have kids to support. But should you spend all your waking hours slaving away at a desk at a job you hate in the name of sucking it up? Taking a 20% pay reduction (that you can afford!) in order to work a flexible schedule that is healthier for your family seems like GREAT middle ground to me!
Life is short and you NEVER know when it could be your last day. To me, that doesn't mean you should just run willy nilly and do whatever you feel like, but it DOES mean that you can't put all your importance on the future, the future, the future at the expense of the HERE and NOW.
I mean, if we are all just supposed to "suck it up and be a man" than why don't our hubbies just go out and get second jobs, third jobs? Work work work day and night so we can have more money! Why do any of us quit our jobs to stay home when we could work! More money!!
I had a WAH job that got out of hand and I hated it. It was ruining our family life and I just could not handle it anymore. Dh fully supported me quitting even though it meant a $1000 per month reduction in income. He could have just told me to suck it up and be a grown up
but lucky for me he doesn't think that being a grown up means living a life that you hate every day. My SIL is from a dual income family and they recently decided she should scale back to a 4 day work week as well because she just wanted to and they could afford it. GREAT!
Taking the leap into something new, especially when it is non-traditional, is almost always scary and difficult. Kudos to you guys for being supportive of each other and putting your happiness and quality of life before the almighty dollar. You said it yourself--you are debt free, financially secure, and able to make this work. Enjoy it! And congrats!!