YOUR MONEY: MAKEOVER REDUX

Then: Renters in February 2008, the Stones wanted to buy their first home and save for their retirement. That was a stretch on Mark’s $68,000 public school teacher’s salary (now $69,000) with two children at home and another child on the way. The planner recommended that they buy through a short sale or foreclosure and that Jessica increase her monthly income from teaching dance to children to $1,000 from $300. She urged them to continue living very frugally.

Now: Jessica, 32, gave birth to the couple’s third child, and the family bought a town home in Huntington Beach through a short sale for $294,500. Their low income qualified them for an affordable loan from the state. The Stones cut back their spending even further, paid off their credit card debt and built up an emergency reserve of $10,000. Jessica has stopped teaching dance but plans to resume eventually.

New habits: Mark, 33, gave up his cellphone and began carpooling to work. They rely on friends at church to help out with child care. They halved their monthly tithe to their church and cut out most moviegoing. They spend their free time at parks and the beach. Jessica does many errands on foot. Every month, they put $25 into a college savings plan for each child. The Stones also save $100 a month for their retirement.

“It seemed like it worked out perfectly for us,” Mark said. “We feel pretty blessed.”

-- Ann Marsh