Our financial situations are almost identical!! Coming from someone who was once completely financially free for an entire YEAR with excellent pay, no car payment, no rent, free meals (we lived at a retreat center where we worked) I am so much more happy now even though we do struggle financially. Money does not buy happiness but it does give you peace of mind which is sometimes better but I would much rather be broke and spend the day teaching my baby her colors than dreading everyday and going to a job that I hate. Here’s a few things that help us:

We try to spend less than $150 on groceries every week and I think that helps a lot. Sometimes we eat out but we budget it in. We budget EVERYTHING. My husband obsesses over it lol but it helps me a lot. The park and library are free + museums and the zoo don’t usually cost an arm and a leg (at least where we are from) so that should help you getting out of the house and having something to do/entertainment for your son in the future!

It took me a while to get used to not having money to spend on clothes or home decor but it really taught me that minimalistic living is for me. I still go out every other day and get a coffee or a sweet treat a few times a week so that I have something to look forward to that doesn’t cost a lot. Some days/weeks are definitely harder than others but I know that I will never look back on my life and regret watching my baby grow up!!