Me too. My kid is now 2 1/2. I'll stick to work until April. Then I'll quit and do something else. I also want to get more involved into business, so I'll enter business school. Saved me a good amount of money! One thing that is important to me is that we have quite low costs of living. And I mean really low costs. No expensive car to maintain, no fancy hobbies. So this works... Don't know about your situation though but I learned that you can cut back tremendously if you must.

Only so much. Things like rent and medical insurance are impossible to avoid, and rent is highly dependent on your location, which is tied to your job. You could get cheaper rent by moving to rural Wyoming, but you're not going to find a tech job there. If you can work remotely, however, or you have your own work-at-home business, this does give you the freedom to seek out lower CoL locations. But medical insurance is still a big factor, esp. when you have a family.

I'd say that these days, housing is easily the #1 cost for most Americans, and in terms of the fraction of a person's income, it's really ballooned from 20 years ago.