We all do what we have to - but we are a family of 6 (#7 on the way) and I don't see how we could live on any less than what we have, which is double the 25K. It would mean a major lifestyle change for us and I may be able to do it, but I don't think I'd be very happy.
Its hard! For two years my famil of just me, my husband and 2 children lived off 24,000 a year, we make just a little more than that now, and the little bit more HELPS ALOT! We did have to be frugal, no outstanding debt, no car paymants, just a cheap apt, car ins (the minimum unfortunately), phones (the cheapest service), food and gas in the car.