A lot of people really don't understand what it is like to have a work at home job and think that it's extremely easy to do. However; this is not always the case. If you have kids, other people living with you, the noise levels are already going to be higher just because of that. Then add that to the other outside noises and before you know it, a person can't think clear enough to get their work done. Here are a few things you can do that might help some.
Probably one of the best things that you can do is really try to find an area of your home that simply isn't used much by anyone else that might live there. Even if it's small, as long as it is yours and yours alone it's important. Even if you have to move into the basement, do it.
You also might want to take a little bit of cash and invest in a good headset called Plantronics. It may cost you around a $100 but once you try it out you will be amazed at how they completely drown out every bit of background noise that there might be in the area you are working in. This may an absolute necessity if you simply don't have a spare room to set up your office in.
Another way to help cut down on the background noise so that others, like clients, can't hear it is when you start your shift, make sure that you have a fan in the background of the room you are working in and also have one of them situated a little farther away and have both of them turned on at the same time. You would be amazed at how much these two fans will muffle all of that annoying background noise.
One more thing you can do if you don't have a separate room to work in is to divide your work area off from the rest of the room by hanging up a blanket or quilt. Believe it or not, this small divider will actually cut down on some of the noise. It also might give the hint to others that you don't want to be disturbed.
If you have tried all of this and have sat your family down and well as your friends and tried to explain to them how difficult it is for you to do your work and get it done correctly when they are always making noise or calling you, you may simply have to bite the bullet and start working a night shift.
Final Note: It's probably not a really good idea to work from home if you are the one that is in charge of the children full time. If you can't get someone to watch them it's going to be awfully hard for you to give 100% to your job and to your kids. Just food for thought.