How to Manage Money After a Layoff

With the unemployment rate now at 9.8%, chances are that you or someone you know has been laid off. Yet the bills still need to be paid, and without that salary you used to depend on, it’s hard to know what to do first. Galia Gichon, founder of Down to Earth Finance, former Wall-Streeter and personal financial expert with a particular focus on women, suggests creating a financial plan and sticking to it in order to make the most of your savings or severance. Here’s what she had to say about spending habits, budgeting and more after a layoff:

Recessionwire: What’s the first thing you should do with your money after you’ve been laid off?

Gichon: I would say that the first thing to look at is automatic payments that you might not be aware of. Look at your credit card bills and bank statements—perhaps it’s the newspaper, video rental, the gym or charitable contributions—which can add up to hundred of dollars a month…