Don't let a job layoff put you into deeper trouble

— -- Most Americans live paycheck to paycheck. And for most people, that works out pretty well — until the paychecks stop.

That's the predicament facing thousands of Americans who have lost their jobs in recent weeks.

If you're out of work, you might need to make long-term changes, such as learning new job skills or relocating. But in the short-term, you need to shore up your finances. Otherwise, even a short period of unemployment could jeopardize your financial security. Where to start:

Know your numbers.

Sit down and figure out all sources of income, such as severance pay, unemployment, wages from a part-time job and help from family, says Mike Haubrich, a financial planner in Racine, Wis.

Once you've calculated your income, make a list of all your monthly expenses, says Barbara O'Neill, financial resource specialist at Rutgers University. That way, you can figure out how much money is coming in, how much is going out, and where you need to cut.

Prioritize your expenses.

Basic needs, such as the mortgage, utilities, health insurance and groceries, should be at the top of the list, O'Neill says. After that, list expenses that will enhance your job search. Your cellphone and Internet service, for example, "can be really important lifelines when you're trying to get a new job," O'Neill says.

Scale back immediately on non-necessities, such as premium cable and restaurant meals, even if you're sure you'll be back to work soon. Resist the temptation to use credit cards to maintain your lifestyle. Many people underestimate how long it will take to get work, O'Neill says.

Everyone in the family should be involved in this effort, says Catherine Williams, vice president of financial literacy for Money Management International, a credit counseling agency. Don't hide the truth from your children. You don't want them to think they'll have to start selling matches in the street, Williams says, but you should "talk in very general terms about the changes that are going to have to be made."