I kind of related to this story too.
Moved from a really low COL area to the DC area in 2004. Bought a really expensive (but small!)house, in 2004, no less. In 2006, I got pregnant - with twins. Became a single (sole) mother. And really went through the financial ringer for the next several years. Luckily, I had a healthy emergency fund and I used it. I can remember when the girls were babies, daycare was $567 a week! That's a really, really nice car payment, every week. I was fortunate enough to have a really great job, with a really great company.
And, sure, I could have sold the house, but I was underwater on it for several years. And I never did run out of money, but I do feel like part of it was luck. And I only had my PT cruiser, which even then wasn't worth much, but was at least paid for. I've since added a 2000 Chrysler minivan to the mix and between them I get decent reliability, lol.
It is really just this year (the girls are 7), that I feel like I got myself back on track financially. And I still have healthy 401ks and Rollovers, but I can't help but kick myself about how much healthier they would be if I could have continued to max out my 401k during the downturn. But I couldn't, I paid for childcare.
Really, to a certain extent, life's a crapshoot, and we all have to do the best that we can, and make the best decisions we can.