Losing an income can be a devastating blow for anyone… both emotionally and financially.

While you may not think about it often, losing your job can really put a spanner in the works and send you into financial mayhem. Have you considered what you would do, and how long you could survive, if your main income was taken away?

It is worthwhile doing the exercise even if you’re in a secure job because you never know what could happen. Work out how much you would need to scrape by on and then look at your savings to see how long you could survive.

An old boss of mine recommended that I should always have savings atleast equivalent to 6 months salary because working in the media is so risky.

If you’re staring down the barrel of being made redundant, the earlier you plan the better. There are a few simple steps to start now.

First of all, write up a budget to determine how long you can survive without work.

Start a savings plan now and add as much as you can until your job disappears. Every household should have an emergency fund saved up for times just like this.

Start looking around for other jobs now. Send your CV to recruitment firms, enquire with competitors to see if they have any upcoming vacancies, let friends and family know that you’re open to offers.

Don’t wait for the axe to fall. Proactively anticipate the inevitable and look for alternatives early.

If you’re job is disappearing, then you’re entitled to a redundancy pay out. Make sure you know the details of the package and are getting what you deserve. The great thing is that a big chunk of this is tax-free: the first $7350 plus $3676 for every year of service.

Unfortunately income protection insurance only applies when you can’t work because of health reasons. When it comes to insurance and super, check whether it’s through your employer’s fund. Look into getting a continuation clause to avoid a change in terms and fees.

Save up your annual leave and you’ll get this payment added to your package when you leave.

Contact Centrelink and find out what benefits you are eligible for. You’ve paid taxes all your working life and they are used to pay unemployment benefits for Australians out of work. There is no shame in claiming it during times of need.

Also talk to the bank and, if you need to, switch your mortgage to interest only payments until you get back on your feet.