Singapore - The steady lack of income is not the only financial challenge facing workers who have been laid off. 

While scenarios among individuals differ, other financial challenges a retrenched employee will face include the amount of debt the person is in, and whether there is an adequate cashflow to tide a person in between jobs. Other factors such as a person's age, skill set and last drawn income can also have an impact on the length of the job hunt. 

Thio Eng Huat, vice president and licensed financial adviser representative of ipac financial planning Singapore, says employees who have been recently retrenched should first see how they can optimise their redundancy packages. 

"Be clear on your share plan and any other company benefits available to you. Review what insurance benefits that you may need replaced, and also any tax issues that may arise," says Thio. Unemployed workers should also look over their budgets to see how they can free up some cash.

For workers taking up lower-paying jobs, they would need to look over their budget to see where money can be saved. For instance, eating less frequently at restaurants or taking the public transport can help a person maintain a healthy savings level, says Thio.

Even those earning a steady income can take precautionary measures to prepare for any troubled times. Some measures include building a personal financial plan, and determining how long a person's money will last if there was no more income source.  

"Be liquid," Thio adds. "If you are heavily leveraged, pay down your loans, particularly if you have credit card debt."

And for foreigners working on Employment Passes, Thio says they should consider applying for a Personalised Employment Pass (PEP) instead. "A PEP is not tied to any employer and allows the holder to remain in Singapore for a certain period of time in-between jobs so they can evaluate new employment opportunities," Thio says.