Waugh, 38, ended a fabulous 18-year Test career three months ago as cricket's most successful captain.
The most influential cricketer of his generation finished with a number of towering achievements. He was the second-highest Test run scorer, the second-greatest century-maker along with being the most successful captain.
"As a cricketer you do get spoiled," Waugh told a business lunch in Sydney on Wednesday. "It's great while it lasts but you don't want to stay in that sort of lifestyle for too long.
"You're back to reality with three kids because you've got to do the hard work and the little things.
"You've got to change nappies and get them breakfast in the morning and do the normal stuff, which I really enjoy. It's great to be back in that environment and that lifestyle."
Waugh is relishing the chance to read stories to his kids, drive his seven-year-old daughter Rosie to school and ballet, take his four-year-old son Austin to the golf range and play with his two-year-old Lily.
"As a cricketer you go on tour and it's all about yourself.
"You can order room service every night if you want, throw your clothes on the ground and pay for someone to do the laundry.
"You really are looked after and it's a different world."
Waugh even had a battle watching Australia's recent Test series win over Sri Lanka, the first since he retired and handed the captaincy over to Ricky Ponting.
Every time he flicked the channel over his wife Lynette would say: "Get that bloody cricket off."
"I can understand that after 20-odd years of watching nearly every day of her life," said Waugh, "it's probably not top of her list."