It’s bad enough to be laid off, but to lose your job in the midst of one of the steepest economic downturns of recent memory – that’s even more difficult. How do you cope? Here are some suggestions:

1. Rethink tapping your 401(k)

You CAN take out your retirement money – federal law allows tapping your 401k for a hardship withdrawal if you lose your job. But try to avoid it. You’ll be selling at lows, and locking in losses. Worse, you will likely have to pay a 10 percent penalty if you are younger than 59.5 years old. On top of that 10 percent, you’ll pay taxes. Bottom line, is that about 40 percent of your distribution is going right back to Uncle Sam.

2. Money sources

Finding money to pay the bills when you’re laid off is one of the most difficult tasks. If you have a home equity line of credit, now is a perfect time to tap in. Unfortunately, many folks have had these loans canceled or revoked. If the HELOC isn’t an option, you’ll need to look at generating new income. Consider picking up any sort of part-time or freelance work to make ends meet.

3. Get retrained

People in the best situation right now are those with transferable skills. Former real estate brokers are running businesses managing foreclosures. Not everyone can transfer skills. Some of us will have to retrain. Consider community colleges, some are offering fast track programs for people who are trying to develop new skills sets. Online colleges are another way to go for people of limited means. To find an accredited online college check out the Council on Higher Education Accreditation. That website is chea.org.

Get more tips every day this week during Gerri’s Layoff Survival Guide on CNN’s American Morning.

Losing your job isn’t just about losing your paycheck, it also means losing your health care benefits. And it’s really going to cost you. A simple injury could send you into bankruptcy if you don’t have insurance. Here’s what to consider.

1. Know your options

If you are laid off, try to get on a working family members plan through a process called “special enrollment.”  This is by far the cheapest of the options. But you have to do this within 30 days of losing eligibility for coverage. There’s no forgiveness on these deadlines — so act quickly.

2. Consider COBRA

This allows people who are laid off to continue their existing company coverage. But it’s expensive since you’ll pay the full 100 percent of the premiums plus administrative costs.
To get an idea of just how expensive COBRA is take a look at these numbers: under your employer’s health care plan, you’ll pay $721 for an individual policy and $3,354 for a family policy.  But under COBRA, you’ll pay nearly $4,800 for an individual policy and almost $13,000 for a family policy. Again, there are important deadlines: You have 60 days to elect COBRA and 44 days to make the first premium.

3. Get help

Medicaid and S-CHIP programs are options for people who meet income guidelines. The final option: Buying coverage in the individual market. This is also the most expensive option because you don’t get the benefits of pricing for a group. Your state insurance department can help you find insurers in the individual market in your state. The Department of Labor has a toll free number to its Employee Benefits Security Administration which is 866-444-3272. One word of warning here: If you go 63 days or more without insurance and then find a job, you new employer can refuse to cover a pre-existing condition.

Get more tips every day this week during Gerri’s Layoff Survival Guide on CNN’s American Morning. Thursday’s topic will be: Getting your benefits: Retirement.

Few things are scarier than losing your job – and it’s cold comfort that your cubicle mate be out on the sidewalk as well. Here’s a guide to surviving the day of the layoff.

1. What to expect
Normally, you’ll have some sort of interview with your manager, who will explain what’s going on and whether or not you’re getting severance. If the employer asks you to sign a release form in order to get the severance, it’s a good idea to have the form looked over by an attorney.  Next, call the payroll department and find out what the company currently owes you. This is critical for people who are paid on commission. Also, this is your opportunity to ask for a referral.

2. Take your stuff

You’ll be expected to get out of the building as quickly as possible and security guards are likely to be watching your every move. Leave the company laptop, PDA, but take your personal effects like photos. Even getting your rolodex out may be difficult at this point.
Taking company property may jeopardize any compensation you may be planning on getting - customer lists and proprietary data are verboten - stay away!

3. File for unemployment

There is a two to three week waiting period before benefits start. So, the sooner you file, the sooner you can get your money. Today, most states don’t even have a jobless office, you have to phone in your request or go on line. The truth is you’ll be lucky if jobless benefits cover a third of your salary. The average worker gets $293 a week, but your amount will be based on your earnings over the previous year. Benefits typically extend for 26 weeks.

Get more tips every day this week during Gerri’s Layoff Survival Guide on CNN’s American Morning. Wednesday’s topic will be: Getting your benefits.

It’s not for nothing I’m called the “hairless prophet of doom.” Every day, it seems I’m breaking bad news on record oil and gas prices. Last week, crude oil hit dangerously close to $150 a barrel. This week, gasoline surpassed a national average of $4.10 a gallon — and almost every day sets a new record. The result: with gas prices up 40 percent from a year ago, Americans are altering their driving habits.

CareerBuilder.com confirms some of this sentiment in a new online survey of 8,700 American workers — 89 percent of whom said they drive to work. Almost half said they’ve been forced to give something up to afford the cost of their commutes. Going out to eat at a restaurant was the biggest sacrifice for 35 percent of those surveyed, while 31percent spent less money on entertainment; and 21percent skipped a vacation. The lowest result was cutting back on their children’s extracurricular activities — only 4 percent did that.

Here are some tips CareerBuilder.com suggests to get the most of your commuting dollar:

1) Check for office perks. Some employers actually reimburse you for your commuter costs.

2) Carpool. It’s a win-win for both your wallet and the environment.

3) Take mass transit. If your area has good public transport, ride and save time and money– and it’s less wear and tear on your car in the long run.

4) Telecommute. Many workplaces are now switching to a 4-day work week because fuel costs are so high. If your company is flexible, suggest working from home a day or two to cut down on costs.

5) Get in shape. If you can, walk or ride a bike to work when the weather’s nice. You’ll save a bundle and it’s good for you!

It looks like high gas prices — and bad traffic- — are really taking a toll on American commuters. According to the survey, one in ten workers said they would take a pay cut just to drive to a job with a shorter commute. That makes sense. Who wants to pay double to be stuck in traffic? Now that’s the pits!

Americans are fed up with the down economy. Inflation, static wages and job insecurity are all weighing on people this election year. The economy continues to be Issue #1 for most Americans.

Gas prices now average well above $4 a gallon, the unemployment rate hovers at 5%, and the stock market just experienced its worst monthly performance in June since the Great Depression. Many people are worried about the future and need to build up some personal wealth.

So, just how far will you go to build up your safety chest? Salary.com just released the results of its 2008 Salary Value Index (SVI), ranking the best and worst cities in America for building up some financial security. The index looked at local salaries, the cost of living and unemployment rates in medium to large cities, focusing on the relationship between living costs and pay. Here’s what they found.

The best cities to build your personal wealth:
1) Plano, TX is just above the national average in terms of both salary and cost of living. Plano has a very highly educated workforce that has a variety of career options. Cost of living is relatively low, while wages are reasonable.
2) Aurora, CO is the third most populated city in Colorado. Aurora’s economy is booming due to status as a business leader in aerospace, biotechnology and high technology.
3) Omaha, NE remains racially and ethnically diverse. The city’s economy has experienced a boom in the last two decades due to diversification of various industries.

The worst cities to build your personal wealth:
1) New York, NY tops the list. Paychecks don’t stretch very far in the Big Apple.
2) Washington, D.C. may be one of the most sought-after places to live, but like most coastal cities our nation’s capitol is not ideal for building personal wealth.
3) Los Angeles, CA boasts comparable wages (20% above the national average), but cost of living is 60% higher than Louisville, KY. While not quite as expensive as New York, it is almost impossible to live in LA without a car. And cars need gas…

Well, it’s not really a surprise to see the Big Apple at the bottom of the list. How are you supposed to save anything when buying a one-bedroom Manhattan apartment can set you back a million dollars? It’s interesting that little Plano, TX — near Dallas — comes out on top. So the moral of this story is, if you really want to build up some personal wealth, bust out the cowboy hats and head out west!

Job security is a real fear in today’s down economy. Already some 324,000 workers have lost their jobs this year, and because of that, many Americans hesitate to assert themselves with their employers when a promotion comes up.

So, what can you do if you think you’ve been wrongfully denied a promotion in the workplace? Employment lawyer Robin Bond says you can make a legal claim if you are:

1) A member of the “protected class.”
If you have been passed up for promotion because of your gender, race, color, religion, or national origin.

2) Qualified and have applied for a promotion.
If you have applied for a promotion and you are qualified for a higher position.

3) Rejected despite qualifications.
If you have been rejected despite your qualifications for a promotion.

4) Passed over for an equally or less qualified employee who was not in the protected class. If a less qualified colleague receives promotion over you.

Bond says if you think you’re being unfairly passed up at work, and you meet one of the above criteria, you can compare your qualifications with the co-worker who received the promotion over you, meet with an employee attorney to discuss your options, and then meet one-on-one with your supervisor to assert your grievance.

Just about everybody is feeling the pinch of high gas prices these days. But most of us have to drive — at least to work. Your boss expects you to show up for work. No excuses.

While commuting to work is getting more expensive, here’s how you can save.

1) Maintain your car

Make sure your tires are inflated properly. If you have a roof rack that you’re not using, take it down. Get rid of heavy loads you’re carrying around.

2) Find a buddy

Carpool with colleagues or fellow commuters. Sign up for the free service http://www.erideshare.com/ or look into your options at http://www.commuterchoice.com/.

3) Reduce your insurance

If you cut your commute, let your auto insurer know. You’ll generally get a low-mileage discount if you drive fewer than 40 miles per day.