Charles and Diane Royal (not their real names) were basking in the warmth of a stable existence. Charles was in his 23rd year of employment at a Kitchener auto parts company, one he'd joined right out of high school. As for Diane, she had found success on the trading desk of a Toronto investment firm, though at this point she was enjoying maternity leave following the birth of Donald, the couple's first child, and overseeing some major renovations on their Waterloo, Ont., residence. Life was good. The couple had high incomes-$73,000 for Charles, $53,000 (and a $10,000 bonus) for Diane plus some solid investments. Then, in October, came a cold blast of bad news: Diane had lost her job. "The first question I asked my boss was, 'Is that legal? Can you lay off someone on matemity leave?" She quickly learned the answer: Yes. A week later the couple was jolted by more news: Diane was pregnant again. In retrospect, explains Charles, 41, the job loss "was a bit of a blessing." Their lives had suddenly been simplified. "Diane had put in 12-hour days with the train ride to and from Toronto," he says, "and it would be a little bit tough to do that and kids as well." At first, the loss of the second income wasn't frightening. Diane, now 43, received a good severance package, which, she says, "paid off our line of credit, and helped pay for basement renovations and a used mini- van." But that was almost two years ago. "All that money is gone now," says Diane. "Spending-that's the problem." Though she plans to go back to work when the boys are both in school, that won't happen for several years-Joey, their second child, has just turned 1. To cover their bills, the Royals have repeatedly dipped into their line of credit. They have not, however, made much of an effort to track their spending. In fact, the first time they tried to estimate their annual spending for their financial planner, they couldn't account for more than $10,000. On their second attempt, after going through their accounts in more detail, they discovered that such expenses as clothing had risen from $2,500 to $3,500. Entertainment, though, at $1,700 a year, is not one of their big expenses. "We're at home a lot," explains Diane. The Royals also don't pay out much for vacations. Diane's parents are happy to have them at the Euro Disney in France," "when the two children get older, we want to take them to Euro Disney Another area in which their expenses are relatively low is vehicle ownership and maintenance. Both the 1992 Ford Aerostar minivan, which cost $7,700, and a 2002 Dodge Ram truck Charles bought for $38.000 are in good shape, though they don't plan to pay the truck off until 2009. Up until a year ago, the family mortgage was just $45,000. (The couple, who met eight years ago, had both been homeowners-a Toronto condo for Diane, a Kitchener house