It may not happen in the next few months. It may not happen at all. But the possibility of retrenchment amidst a recessionary environment is very real for many. Right now, even graduate programs and graduate recruitment opportunities are highly competitive.  At this time, having a professional resume ready is only the first step.

It’s wise then to establish a strategy for dealing with retrenchment, to prevent you from falling in a messy heap if it actually does occur. One of the obvious elements of your strategy is to pull back on discretionary spending and instead start putting that cash away into a savings account. You may be surprised just how much you spend on impulse buys such as clothes, alcohol, and entertainment each week. These are things that in belt-tightening times you may need to do without.

In tandem, start a spreadsheet outlining all your necessary expenses – things like groceries, medical payments, rent or mortgage dues, insurance, and so on. Record all of these expenses into your spreadsheet for at least a month to give yourself a clear idea of how much money, on average, you need to bring in each week. The act of tabling your outgoings can actually be quite a calming and empowering exercise. Simply knowing how much money you need to sustain your current life in its most basic form gives you a clear goal to focus on should your salary suddenly halt.

Also, start saving. The money you don’t spend on discretionary items can be cash you put aside into a separate savings account as a reserve if you are retrenched. Weekly deposits can accumulate quickly, and having the cash there will give you an idea of how long you can live by your own needs until you need to find another job or access unemployment benefits.

At the same time it’s wise to pay off as many debts as possible and to sure up your contact network. Getting all of these things in order will prevent you from panic if you are handed a pink slip and are having to brush up on your interview skills. Establishing relationships with a reputable recruitment agency is another good consideration.