"I lived off my charge cards," said Rae Kawamura, an on-call flight attendant with Northwest Airlines. "My husband was a spender, I was a spender."

Saying "I do" and planning for a family sparked a change in the Mililani couple's spending habits five years ago. To the surprise of their families and friends, they used their honeymoon gift money to pay off $7,000 in credit-card bills.

But the real push to change their ways came when their son, Chaz, was born four years ago.

"When we first had Chaz, I lost $500 (in Vegas, and) usually that's good," said 35-year-old Ed Kawamura, a pharmacy technician with Costco. But "I was devastated. I just spent $500 of diaper money, or money for his formula."

Today the Kawamuras are free of credit-card debt and saving regularly on their $64,000 annual combined income. They want to have a second child — but are concerned they might get into debt as a result. As recovered spendthrifts, they have a dread of being overextended again.

"Could we get by with what we make, or will it cause us to start having debt?" wondered Rae, 35.

For advice, they met with James Michishima, a certified financial planner with the Chinen & Arinaga Financial Group in Mililani. In answer to their question, he spoke not only as a financial adviser, but also in the role of a family counselor.

"If you were to look at finances alone, you would never have a child, because it costs so much," he said. "If you wait until your finances are all in order, it might be too late to have a child."

That doesn't mean they still shouldn't plan for it. Michishima estimates that a second child would cost them at least $5,000 more a year.

To see where they could cut back, the financial planner recommended they set up a budget and track their expenses regularly. This simple first step would open their eyes to where cash is going.

"We never really had (a budget) because we thought, 'We're cool, we don't have any debt,' " Rae said.

One way they have tried to save money is by cutting out gifts to each other and adult family members, including the practice of "omiyage," the Japanese tradition of bringing home gifts after a trip. Rae's family, who live in Southern California, adapted to the change more readily than her husband's relatives, who are kama'aina.

"It's our main money-saver," the flight attendant said.

They've put aside $14,000 towards Chaz's education, which Michishima said they should invest in a tax-deferred education savings plan such as a Coverdell IRA or a 529 plan. But plans for their son shouldn't come at the expense of their retirement.

To make their savings grow faster, the couple should consider investing at least 70 percent of their $110,000 nest egg in a variety of stock mutual funds, the planner said. Currently their 401K funds are in more conservative investments.

Ed mostly has stayed away from stocks because he has seen what the bear market did to his friends' portfolios.

"Some of my buddies took a huge hit on stocks, oh my gosh," he said, shaking his head.

Michishima said it's probably because they concentrated their money into one stock or sector. Historically, a portfolio diversified into a variety of investments doesn't see the same volatility.

But Ed noted that his friends had recovered their losses by plowing more money into stocks when the market was down. So he wondered whether he also should trade stocks, since his friends seemed to be doing well now.

Most people don't make money trading frequently, Michishima said. They give the impression they're doing well because they tend to be more vocal about their wins than losses.

"We see a lot of clients that trade a lot," Michishima said. "There are very, very few that make money. Your friends aren't telling you the whole story."

Rae reminded Ed that several of his friends lived at home and paid no mortgage. Stock losses don't hurt them as much.

To ease the Kawamuras into stocks, the planner said they could invest future savings into stocks and leave old money in more stable investments. As they become more comfortable with equities, they could move the rest. Michishima would start them off with American Washington Mutual Investors Fund (AWSHX) or American Investment Co. of America (AIVSX).

Eventually the couple also might wish to diversify into state, city and county municipal bonds, which are free from federal and local taxes.

Moreover, they should consider taking out a home equity line of credit to be used for major emergencies, Michishima said. It's better to get it now, while they can qualify; sometimes you can't get it when you need it most.

In addition, the Kawamuras should keep six months' worth of emergency living expenses in a savings account. Currently they have $21,000 in a bank account in which they deposit $150 a month.

Ed Kawamura should increase his life insurance coverage by $70,000, since he's covered for only $190,000 and they owe about $260,000 on their mortgage. Rae is adequately covered, with two policies that pay $280,000.

Finally, the Kawamuras should consult an attorney about setting up a will or a living trust, Michishima said.