You've already gotten a lot of responses,
I had a pitocin-induced, epidural labor/birth with my first (like your 2nd, I had my son an hour after getting the epidural), and went drug-free with my second. I will echo the other responses that my second birth experience was so much better. However, if I had only had saving money as my motivator, I don't think I would have done it. I had very personal reasons for wanting a natural birth. I don't think the money-saving would have been a big enough incentive for me... Will it be for you? That's something only you can answer.
If you do decide you really want a natural birth, I would recommend you really prepare for it. Having a baby naturally is hard work, and I doubt anyone would do something highly physical without training first (running a race, climbing a mountain, etc). Giving birth shouldn't be any different. Research some different pain-coping techniques and decide which suits you, and then take a class OUT OF THE HOSPITAL (several people have recommended hynobirthing, I will add the Bradley Method to that. I tried hypnobirthing with my first and it didn't suit my personal tastes, but the Bradley Method was wonderful for preparing me and my husband to have a natural birth in a hospital setting. It is really a matter of personal preference, though.). Being prepared and knowing the different stages and signposts of labor really helped my husband and I get through it. During transition in both of my labors, it got really intense and almost unbearable. In my first labor, not knowing that that was merely a signpost of transition and that it meant the baby would be here soon, I asked for an epidural at that point. During my second labor, since I (and more importantly, since I wasn't feeling very rational at that point, my husband) knew I was in transition, I was able to wait it out. This is one of the main reasons my husband I loved the Bradley Method so much. It really prepared HIM to be able to assist me in my labor.
I know some people say "try it and see how it goes," but for me, it had to be all-or-nothing. Personally, if I had given myself an option to get drugs, I would have taken them (like I did with my first birth, where I had the "try and see" approach). I had to totally commit myself to going drug-free, and then when I was in transition and wanted drugs (the only time I really felt like I couldn't do it, and only for about 20-30 minutes), I simply told myself that wasn't an option. FOR ME, that was essential. For you, it might not be.
As far as tearing/getting stitched, with a natural labor, if you will allow your body to control the pushing (rather than forcing yourself to push because your doctor wants you to, or forcing yourself to push when your body doesn't feel the urge to push), you are much less likely to tear. I had a horrible 4th degree tear and an episiotomy with my first, and didn't tear at all with my second. My body just knew what to do when I trusted it. I will say that, unlike most of the other responses, pushing was extremely painful for me the 2nd time. While the pain of contractions during transition was longer-lasting, the pain during pushing was definitely more intense. I do, however, have big babies, so that might be part of it for me (my first (son) was 8 pounds 12 ounces and my second (daughter) was 9 pounds 5 ounces).
Even with the pain of transition and pushing, if I decide to have more babies, I will definitely do it without an epidural. It was such an amazing experience for me.
Anyway, if you are really committed to having a drug-free birth, you can definitely do it! Good luck!