Budget shortfall

I've started working on the budget for when I return to work in September and it's not a pretty picture.  Just plugging in the minimum payments for our debt and the basic household expenses plus the baby expenses we are looking at a shortfall of $600 a month.  This doesn't include putting anything aside to restock our emergency fund or include any money to cover big one time expenses coming up like new tires, auto maintenance, or my professional fees that are due in November.

There are a couple items in the budget that are currently just placeholder estimates. These line items are life insurance and S's student loan.  I was hoping to have life insurance squared away before the babies came but with everything that happened at the end of the pregnancy that to-do kept falling to the end of the list.  We are also in the process of renegotiating S's student loans which were in default.  Hopefully, I have included enough in the budget to cover these two items or we may have an even bigger shortfall than I am expecting.

The next step for us is to examine every way we can eliminate the shortfall and have enough left over for savings and large expenses.  The following is a list of the initial ideas I have for firming up our budget and getting the bottom line in the black (some of the ideas are obviously not desirable options but may end up being necessary):

• Get life insurance
• Complete S's loan restructuring
• Refinance car loan
• Look for lower car insurance rate
• Reduce or eliminate 401(k) contribution
• Look for less expensive health insurance option
• Put my student loan in deferment until higher interest debts are paid off
• Make more money... not sure how but need to think about this one!
• Find new homes for some of the more expensive pets (last resort!!)

So there's the list of things I'm trying to accomplish before returning to work, all while juggling my twins!  Wish me luck!