How to live well on $40,000 or less (Is it possible?)

I've been thinking and thinking about a comment I received in response to a recent post published on this humble weblog:You have to pay rent, get to work, keep the lights on and make sure your family has enough to eat.

I found an MSNBC article detailing how one couple ("Amy Halloran and Jack Magai, who live near Albany, N.Y., with sons ages 7 and 12") make do on an adjusted gross annual income of about $30,000. How DO they do it? Is it realistic to believe that anyone else could accomplish this?

! - I found the breakdown of where the couple's money goes lacking:

* Mortgage: $900
* Food: $400
* Retirement: $833
* Internet/phone: $170
* Utilities: Heating and cooking are wood-fired

Most people need car insurance (and cars) - what about electricity?

Not too many families can live "off the grid." The average Gas & Electric bill I've paid during winter months (this average stretches back more than 10 years) is around $300, and once when I lived in an apartment complex in Albany which came with built-in electric baseboard heaters, it was common for residents to pay as much as $800 a month to National Grid.

And what about emergencies? Maybe these folks tap into their "Retirement" when something comes up...

What's YOUR take on this?

Are you living large on a budget?

Care to share? Comments, please!