If you are used to making a decent salary and have suddenly been laid off, you may be in for a rough ride. It can take some serious digging to find high paying jobs in this economy. While you are between careers, you need to be resourceful in stretching your existing funds as far as they will go.

A severance package can provide a much needed cushion after a layoff, but it is hardly a “golden parachute” if your salary was in the $40-200K range. Unemployment benefits don’t last forever either. If you are like most Americans, you probably don’t have 3-6 months of living expenses saved up in cash reserves to live on.

Once you have cut back to the basics, you may still find yourself struggling financially. A comprehensive job search can take months – especially if you are in a competitive field. In the meantime, you need to figure out how to keep a roof over your head.

Here are some things to keep in mind when you are faced with tough decisions:

• Accept short term contract work in your field even if it is at a pay rate well below what you usually earn. This will look better on your resume than just taking any job you can get. Working at a fast food restaurant is nothing to be ashamed of, but it signals to top paying companies that you are really desperate.
• Selling stock is almost always better than breaking into a retirement plan. Even if you are selling shares at a lower price than you bought them, at least you won’t be paying the IRS a 10% penalty for early withdrawal. Also, any financial loss you suffer on a stock sale can be taken off your taxes.
• If you will need a sizable chunk of money to substitute for income, try to get a low interest loan from your bank (e.g. by refinancing your mortgage if possible). Rely on this loan for your emergency cash flow instead of continuing to simply pile debt onto your credit cards.
• Avoid the temptation provided by get rich quick schemes. You should never finance someone else’s startup business venture with your own money. If they can’t get a loan from a bank, their business plan probably isn’t sound.
• Spend some time on self improvement while you are between jobs. Avoid reading too many hyped up self help books. Instead, try a low cost practice such as meditating. You need to be calm and confident – not jazzed. This will keep you from burning out if it takes longer than you expect to find work.

Finally, don’t jump at the first offer you get without fully researching compensation information in your field. Once you have a good idea of how much your skills are worth, you will recognize the right job when it comes along.