Well, I'm not an expert by any means on finances. But we have a family of 7, a blended family, so that means that at any given time there are 4 -6 of us at home. As to how we do it, we're not white collar for sure. My DH works full time and I work part time. I'm picking up two Saturday's a month to pay the baby sitter. But at least I get to be home with my son most of each weekday.
We live by a budget. We spend every penny each month on paper before the month begins. We're not saving as much as I'd like, but we are reducing our debt little by little. Shop at stores that sell off brands, consignment stores for clothing, each out for lunch instead of dinner if you must, turn down the thermostat during the day when you're gone, get rid of your credit cards; pay only with cash or debit cards, etc.
This is probably much more than you wanted to know, but I'm feeling chatty!
P.S. My baby's room doesn't look anything like the pictures I see here, either! He shares a room with my 11 yo step-son for now.