There is another thread about simple living in Personal Growth. I highly reccomend the Tightwad Gazette. It has saved my life.
A big tip for me was if you can't pay cash for something, don't buy it. I use our checkbook for everything. It helps me keep a detailed list of where the $ went and I know exactly how much I have left to spend.
For a bigger house look for a fixer-upper. We bought one. It allowed us to buy a home in a good school district and in an area that's very good. We did a lot of the work ourselves although we did have to hire contractors for certain work.