what would you do?

My husband and I both work full time. He's a farm manager and I'm a supervisor in a gift shop. We both bring home about $2000 a month. I don't think we could afford to live in our current house if I stopped working after the baby is born. However I think if I earned $1000 at least a month doing a part time job we could make ends meet. 
I'd love to be able to start up an Etsy and work from home and make a small living from that but that's something from scratch that isn't gaurenteed success. If I continued working we would have to find a sitter or day care for 4 days and I just don't feel like it makes sense for me to work when I think I'd be saving money staying home and watching him or her myself. 
What to do when the budget is tight????? 
What have you ladies done that live modestly?