One of the scariest things that can happen is to be laid off. If you are fortunate, you have been able to take advantage of benefits such as severance pay or unemployment benefits. Hopefully, your period of unemployment will be brief but many Americans are finding it is taking more than six months to find work. Cover all your bases, stretch your dollars and keep your spirits high with these tips.

Don’t Let Your Health Insurance Lapse
The last thing you need when you are unemployed is to have a medical emergency. If you allow your health insurance to lapse, you will have to pay for all medical expenses out of pocket and any preexisting medical conditions will not be covered for 6-18 months once you are covered again. COBRA will cover you for 60 days after your insurance ends and it is retroactive, which means that if you are within that 60 days and you have an emergency, you can apply for COBRA and receive coverage for those expenses.

Communicate with Your Loan Officers
Don’t wait until you are four months late on your mortgage, car payment or student loans to tell your loan officer that you are unemployed. Find out if you can defer payments until you have a regular income again, or if  you can renegotiate the terms of your loan. Do not dip into your home equity if you cannot afford to pay your bills.

Budget Your Money
Figure out what you spend your money on. Reduce your expenses by cutting out unnecessary items. Use coupons and bargain shop. Make adjustments to your lifestyle to save every penny you can. Instead of purchasing items with an optimistic view that by the time the bill comes due, you’ll have the money, plan for the worst-case scenario. Save your wish list for when you are more financially stable.

Exercise
Unemployment can be tough on your self esteem. Take time each day to exercise. Don't let job loss get you down. It’s important to stay positive while you are looking for work. One way to avoid feeling depressed is by exercising. Your brain releases chemicals in your brain while you exercise that increase your feeling of well being and happiness.

Have Purpose in Each Day
Plan meaningful activities for each day you are unemployed. Wake up early and get ready as though you have a job interview. You never know if one will suddenly materialize. A company who has had your resume in their file for three months may suddenly have a position opening and request an interview with you. Be ready.

Set goals of how many companies you will contact, people you will talk to and resumes you will hand out. Take advantage of your free time to strengthen your skills set. Keep track of your goals and find someone you can report to. Be accountable for the time you have.

Get Involved
You may have found that you suddenly have quite a bit of free time. It may be tempting to spend it in front of your television or computer but it’s important to be out and doing. Find ways to get involved in your community. Volunteer your expertise at organizations that could use your help. Go into it with the purpose of helping others. It will lift your spirits to be contributing to a good cause. Side benefits from helping out may be that the organization will hire you or that you will meet people who have networking connections. Another benefit from volunteering will be on your resume. If you don’t find a job immediately, a volunteer position will be a good way to show potential employers that you work hard. It will also continue to increase the amount of experience you have.

Network
Let people know you are looking for work. The more people who know you are looking for work, the better your chances are of finding someone who is aware of a job opening that fits your skills and interests. Help other people find employment as well.

Make What Money You Can
In between jobs, you may want to consider other ways you can make money. Hire on at a temporary agency or take on a part time position. Take freelance jobs or work as a consultant in your industry. Sell things you don’t need in a garage sale or online.