When you lose your job, there are lots of decisions to make in a short period of time.

As we wrote previously, the newly unemployed need to examine their finances carefully, adjust their budgets, and consider applying for unemployment benefits, among other things.

But when the first days of unemployment stretch into weeks, and when weeks stretch into months, new financial needs and considerations crop up. Here are six financial tips for people coping with long-term unemployment.

Tip #1: Spend Responsibly

Did you get a severance package when you left your former employer? If so, it may be tempting to see that money as a windfall — a relatively large chunk of cash to spend on whatever you please. But since you don’t know how long the severance payment will need to last, it pays to develop a spending plan with an eye to the fact that you may face a long period of unemployment.

Make a plan that considers short- and long-term needs. Since household economics can change dramatically even in a short period of time, evaluate your spending each month, and make changes as necessary.

Tip #2: Stay Liquid

If you received a severance that is large enough to consider investing that money, you likely will want that money to be liquid, meaning placed in investments that allow ready access to funds if you need them. It’s generally not a good idea to tie up that money in assets that you may not be able to sell right away, such as real estate.

Also be mindful of investments that charge you if you need to withdraw money before a certain time. This can be the case with variable annuities (which often have surrender charges if sold before a certain time). Even Certificates of Deposit can cost you in more than just lost interest if you cash in early, in many cases even taking some of your original principal if the accrued interest is less than the penalty.

Tip #3: Know the Relationship Between Risk and Return

The loss of a job might make you feel an urge to take on more investment risk than you should. Some investors may opt to "chase return," meaning they put their assets into riskier and sometimes esoteric products that promise higher yields and returns than they can obtain in more traditional investments.

But keep this in mind: the promise of higher return is almost always associated with greater risk and an increased possibility of investment losses.

Tip #4: Resist the Urge to Tap Your Retirement Funds

When times get tough, it can be very tempting to dip into the money you’ve been saving for retirement, but doing so should be a last resort.

If you withdraw money early from certain tax-advantaged retirement accounts, such as a traditional 401(k) or Individual Retirement Account (IRA), you will have to pay income tax on the funds, and potentially a penalty as well, depending on a number of factors, including your age upon leaving your job. The tax consequences and penalty can add up to a significant hit to your nest egg.

And remember, retirement savings generally grow exponentially. Because of that, tapping that cash too soon can have an outsized impact on your savings.

For example, a 40-year-old planning to retire at 65 withdrawing $20,000 from his or her 401(k) early might net just $13,000 after paying taxes and withdrawal penalties. And that withdrawal in combination with the absence of new contributions could cause his or her account to forego more than $85,000 in savings by the time he or she reaches retirement age.

You need to ask yourself: is access to $13,000 now worth the loss of $85,000 down the road?

Tip #5: Be Careful When Moving Funds

If you plan on moving your retirement assets — even if you don’t plan on touching them — it’s also important to make sure you don’t accidentally trigger these tax consequences.

When you roll over your retirement savings, you have just 60 days to deposit those funds in an IRA or other qualified retirement plan. If you don’t do so in that window, that transfer will be treated as an early withdrawal and you may face tax consequences, including penalties.

If possible, have either your plan administrator or the financial institution holding the funds transfer your money to a new retirement account administrator after you leave your job (this is referred to as a direct rollover). That way, you’ll avoid a situation in which the administrator withholds funds to pay for tax penalties.

Tip #6: Get Financial Advice

Your former employer or union may offer free guidance on the financial decisions you’ll face after leaving your job. If they do, take them up on it. Also, check with state or local employment agencies, which may offer additional information and resources.

If you need assistance, you might want to turn to a credit counselor or investment professional to help you develop a plan to see you through this tough period.

It’s important to do your best to regularly pay all your bills during this period, but if you do fall behind, it might pay to think about setting up a debt management plan with the companies and organizations to whom you owe money.

Organizations affiliated with the National Foundation for Credit Counseling, a trade organization for credit counselors, can help you set up the plan, and they’ll also field inquiries from creditors if they come calling. Typically, debtors pay their counseling agency directly, and the agency then funnels the funds on to the creditor.