Among the top concerns after a job loss is the ability to pay bills and make ends meet until you find a new job. Fear and stress can impede the capacity of even level-headed people to think clearly about their financial situation. But proper planning can relieve some of the strain and anxiety during this time of uncertainty.

One of the first things you'll want to do is rein in your expenses. When Nicole Lipson was laid off earlier this year, a look at her household cash flow showed that her second largest expense, after her mortgage payment, is childcare. The Atlanta-based marketing professional is considering moving her children from an expensive private day care facility to a public-school-based program for two days per week. But she's waiting a month before making any changes.

"I can save $200 a month alone doing this, much more if I made the change long term. While my kids aren't thrilled with the prospect of the school program full time, two days a week is very tolerable," she says.

"Losing your job and assessing your expenses can be a real eye-opener," says Todd Mark, public-relations coordinator for the Atlanta office of Consumer Credit Counseling Service, a nonprofit organization that provides free budget counseling and debt-management plans. He speaks from experience, having been laid off in February from a job as producer of a consumer talk-radio show. "It makes you more conscientious about how you spend and save your money," he says.

Besides tightening your budget, you can take other steps to better manage your finances after you've been laid off. Considering the following tips may help you make the right decisions.

1. Negotiate with your former employer. Most companies do their best to develop a fair severance package. However, there's often room for negotiation.

When you're offered severance, ask questions and focus on understanding your options, says Bob Lewis, general manager of the Atlanta office of Lee Hecht Harrison, an outplacement and career development firm based in Woodcliff Lake, N.J. "Don't react to your emotions," he says. Ask how much time you have by law to respond, and take 24 to 48 hours to make any decisions.

Mr. Mark received six weeks' pay in a lump-sum check and was allowed to exercise his stock options, but says he now wishes he knew the size of average severance packages because he would have felt justified asking for more. "I was so dumbfounded by what had happened, I was just happy to have any severance," he says.

While companies don't owe you additional severance benefits, they may be open to negotiating with you, Mr. Lewis says. When approaching your employer, choose the one or two items on your list that are most important to you. You're more likely to get what you want if you're not expecting every possible concession.

According to Lee Hecht Harrison, there's no universal standard for severance pay. Some companies may offer one to four weeks for each year of service. Other companies will provide those employed longer than three months a typical minimum of four to six weeks. You may be offered a lump-sum payment, but if you ask to receive your severance payments on the same schedule as your normal paychecks, you may be able to continue your health-insurance benefits during this time as well.

Other points that could be negotiated:

• If you're due an annual bonus, the company may be able to give you a prorated amount. If you're asked to stay on with your employer more than two weeks after your layoff notification, consider asking for a stay bonus.

• If you're due stock options, ask for an accelerated vesting period so you can exercise them now. "There's no reason to leave money on the table," says Mr. Lewis.

• If you're close to retirement age, you can ask the company to enhance your pension plan or deferred-compensation plan by applying credit, on a one-time basis, in the form of years of age and/or years of service. The formula for being fully vested in such plans varies by company but often is some combination of your age and the number of years you've worked there.

• Consider asking to keep your office space and phone line while you job hunt. If you have a company car, you might be able to buy it at a steep discount. Your desktop or laptop computer might be yours for free, if you ask for it. Additionally, remember to ask for job-search assistance from a reputable corporate outplacement firm.

Companies typically are willing to give more than they initially offer to avoid wrongful-firing lawsuits and to maintain a positive image with remaining employees. Consider consulting with an employment attorney to make sure your rights haven't been violated.

2. Keep covered. Consider your health-care insurance options, such as getting on your spouse's plan, which likely is your least costly option, or applying to the Consolidated Omnibus Budget Reconciliation Act (COBRA) program, which will allow for at least 18 months of coverage at lower, group rates.

Mr. Mark purchased health insurance for his family as individuals from Blue Cross Blue Shield for $305 per month. "It was surprisingly inexpensive," says Mr. Mark.

Make sure your life-insurance coverage is adequate to meet your family's needs. It may cost less than you think to provide a blanket of security for your family. Term-insurance costs have come down dramatically during the past decade.

3. Make a list of what's coming in and what's going out. Take a realistic look at your family's other income and overall expenses. But don't make drastic changes to your lifestyle right away.

Mr. Mark and his wife had set aside a nine-month emergency fund for unexpected expenses, "so I didn't panic," he says. "I was able to consider all my options and didn't take the first job offer that came along." In the meantime, they cut back on discretionary expenses such as dining out and entertainment. Within a month, he'd found his new job.

Try not to panic when considering additional funds. For example, you don't want to sell your stocks right away for the extra cash you might not need.

4. Apply for unemployment benefits. There's no stigma in receiving these payments. Companies are required to pay into the fund. "It's your due. Frankly, the money comes in handy for expenses like groceries," Ms. Lipson says.

Mr. Mark filed immediately. "Many people reminded me that this was my tax dollars at work and that I would be a fool not to," he says. As it turned out, Mr. Mark wasn't eligible for six weeks, the length of his severance pay, and he found a new job after four weeks.

But be warned: Unemployment benefits are taxable. So you won't get stuck owing Uncle Sam back taxes next April, have federal and state taxes (if applicable) deducted automatically.

5. Consider applying for a home-equity loan. If you own your home and are still employed, you may want to apply for a home-equity loan. You may need the extra money when you get laid off, and it's difficult to get a line of credit without a job.

6. Reduce your systematic savings. Many people contribute money on a regular basis to investments such as mutual funds. But if you're laid off and money is tight, consider suspending these payments until you find a new job.

Mr. Mark stopped all his monthly contributions. He didn't, however, touch his investments. "Though my job situation changed, my retirement plans and investment strategies did not," he says.

7. Don't raid your 401(k). It's often tempting when you lose a job to withdraw money from your 401(k) or retirement plan. Don't do it. Distributions from qualified retirement plans before age 59 1/2 generally are subject to income taxes and a 10% penalty. More importantly, the money you take out won't have the chance to grow and help provide for a secure retirement.

However, there are situations, called "hardship withdrawals," available to 401(k) owners that avoid the 10% penalty on withdrawals made before age 59 1/2. Generally, these exceptions are limited to an immediate financial need, says Sheldon J. Donner, tax partner with the Atlanta-based accounting firm Donner, Weiser & Rosenberg P.C. These include medical expenses for you, your spouse or dependent; the purchase of a residence; payment of tuition, fees, room and board for the next 12 months for post-secondary education; and to prevent eviction or foreclosure

8. Decide which bills to pay first. Falling behind on your mortgage will lead to late penalties and could cost you your home, so this payment should be first on your list. You need heat and lights, so utility bills come next. Since you need transportation to find a job, keep up your car payments.

"A big mistake people make is to pay the bill whose collectors are the most harassing," says Mr. Mark. If the choice is either-or, never pay an unsecured debt such as a credit card before paying a secured debt, such as your house or car, he adds.

9. Reduce credit-card interest rates. Call your credit-card company and explain your situation in a courteous manner. Assure the representative that you're actively seeking a new job. If you have a good payment history, be sure to mention it. Ask to have your interest charges waived for a few months or at least reduced. If you've incurred late fees, request that they be waived.

"You have nothing to lose -- except high interest rates," says Mr. Mark.

You also can try another tack. Ms. Lipson couldn't get a better rate on the main card she uses most often, so she applied for another account with a low introductory rate. She moved half her old balance to the new card and makes the minimum payment on it. "On the other, I still pay a little more than minimum and have reduced specialty shopping to as close to zero as possible," she says.