One morning, after returning home from driving her three children to their Christian school, my friend Sherry found her husband back from work, sitting in their kitchen, with a shocked look on his face.

"Why are you home from work early?" Sherry asked, feeling her stomach tighten with dread.

"I've been laid off," he announced. After 10 faithful years as an aeronautic engineer, he told her how his services no longer were needed at his place of employment. In that one pivotal moment, Sherry's world turned upside down.

As the family's financial stability and comfortable lifestyle began to crumble, so did Sherry's self-esteem. It wasn't long before their SUV and comfortable house had to be sold. Private school for their children no longer was an option.

It was a struggle, but over time, Sherry and her husband learned they could find the sacred in simple living. Sherry realized her children's health, her stable marriage, and her wealth of friends were more precious than the lifestyle she'd been accustomed to before her husband lost his job. She discovered that living on less really could mean more.

Just like Sherry and her husband, many of us have had to live on a tighter budget this past year, too. When we face financial difficulties, it often seems as though nothing valuable can come from the experience. But Jeremiah 15:19 says, "If you will extract the precious from the worthless, you will become My spokesman" (NASB). There's always something valuable in seemingly worthless situations if we look through God's eyes. If you're coping with more month at the end of your paycheck, here are ways to trim your budget and find worthwhile lessons in the process.

Encourage in tangible ways. People who have been laid off may feel like a failure when they can't provide for their family, which can lead to a cycle of depression and lethargy. My friend Stephanie faced this problem when her husband, Bill, was laid off. He sent out résumés, followed up on leads, and was still out of work for months. Mounting tension led to arguments, leaving both partners feeling defeated.

Under the advice of their pastor, Stephanie urged Bill to create a budget for what money they did have. They found ways to save and be grateful for God's provision in the small things. Stephanie did mock job interviews with Bill and helped him make his résumé more marketable. If you're single, ask a friend to be your interviewer, or if you want to encourage a single mom, offer to help her practice.

Bill also became great at saving money at the grocery store and actually cut their food budget in half. By saving in practical ways and encouraging each other, this couple weathered the storm until Bill was employed again. Their marriage was strengthened, they developed greater compassion for those in financial need, and they never forgot that contentment is a choice.

Find additional sources of cash. Once you readjust your expectations and focus on staying content in your tough situation, start cutting back in practical ways. For example, when my friend Kelli, a single mom with three boys, got laid off from her part-time second job, she worried about making ends meet. So her boys helped her clip coupons, organize grocery shopping, and find sales to help save the money Kelli was earning from her primary job. She found she could make up for the money she got from her second job simply by saving money on her groceries, and now she's able to spend more time at home with her kids.

Remember, a penny saved is more than a penny earned because you don't have to pay interest or taxes on "saved" pennies. Say you want to add $200 per month to your current budget. To achieve your goal, you simply could stop spending the $200 per month and pocket it. Conversely, if you wanted to add $200 per month to your budget by earning it, you actually would have to make $260 or more per month to cover taxes, social security, and tithe.

Readjust your expectations. When times are lean, change your definition of entertainment. Rediscover board games, enjoy a walk in a park, or check out a new hiking trail. Instead of going out for dinner and a movie, consider going to a matinee or dollar theater and eating at home. Or review the Lifestyles section of your newspaper and eat at a restaurant that offers midweek specials or coupon discounts.

Update your wardrobe from a local consignment store. You can save as much as 40 percent on your clothing budget, and some of the items are brand-new. For example, my friend Heather is a single professional woman who wears a suit to work. Her job as a television producer requires an up-to-date look, yet she says, "I get most of my clothes at an upscale consignment store. I recently paid half price for a name-brand wool coat that looks fabulous over my suits."

If you have kids, trade your children's outgrown clothing with another family who has kids in corresponding sizes. For example, the Brazell family has a seven-year-old boy and nine-year-old girl. They trade their clothes with the Taylor family, who has a six-year-old boy and ten-year-old girl.

Get your kids to pitch in! When the Hollibaugh family's dad was out of a job, the kids helped out. By explaining their financial situation to their kids, ages 15, 13, 11, and 9, Mom and Dad enlisted their help in weathering this difficult season. The Hollibaugh kids became experts at garage sale shopping and helped their family save on household goods and clothing. For example, Whitney bought three beautiful Laura Ashley dresses for $6 each. And when Ryan knew his younger brother needed a bike, he found two older bikes for $25. He used one bike for parts, and fixed up the other one for his younger brother's birthday present.

Your kids may not go get jobs, but they can contribute simply by shopping at garage sales and not complaining about the lack of expensive snack foods or pricey entertainment.

Pay down debt. Sometimes God provides unexpected sources of income—temporary work, an insurance premium refund, or a generous birthday check from extended family. If these additional monies aren't used for basic household expenses, then after tithing off this windfall, apply the rest toward debt.

By paying down debt, you avoid high interest payments and actually "earn" that extra amount you would be spending on interest and premiums each month. Our family once took a $15,000-a-year pay cut when we already were $40,000 in debt, but we still purposed to become good financial stewards. Instead of taking expensive vacations, we took day trips to free parks-and-recreation centers. We went out to eat only once every two weeks and made it a treat. We continued to pay our tithe first, and it was amazing how everything else fell into place. Within three years, we were debt-free. God provided unexpected sources of income, and we applied those diligently to our debt.