1 Slash your spending: Draw up a budget, cutting out unnecessary luxuries, and stick to it. Cancel subscriptions you don't use for gyms, clubs, cable or satellite TV. Take sandwiches and a flask to work. Saving £5 daily on lunch or coffees and paying it off your mortgage instead could save you £38,432 on average and remove the home loan millstone six years earlier.

2 Pay off your debts: If you have big credit card, store card or other debts you must get rid of them. The interest is crippling, and if you lose your job they could cause you to lose your home.

3 Cut your bills: Use online comparison websites such as www.uswitch.com, www.moneysupermarket.com, www.gocompare.com and www.which.co.uk to make sure you have the cheapest energy, telephone and internet providers. Install a water meter to cut water bills. If your council tax bill is high, make sure you aren't overpaying. Appeal against the banding. Many were drive-by assessments and far from accurate. Single people living alone get a 25% reduction.

4 Build up a safety net: It is vital to get some money behind you, so save as hard as you can. That way, should you lose your job, you can stay afloat financially for a while. Always protect savings from tax via a mini cash Isa.

5 Boost your income: Rent out a room, take in a lodger or if you live in or near Edinburgh go away during the Festival. A two-bedroom flat can earn around £4,500. If money is still tight, get an evening job.

6 Insure your salary: Consider unemployment insurance. However, this will not pay out if your job is already under threat or you are self-employed.

7 Cut credit: costs Pay as little as possible for credit. Find a cheaper mortgage if possible. Once credit card debts are cleared, switch to a cashback card which pays you each time you shop. If you can't control your spending, cut up your plastic and pay using cash.

8 Shop smart: Cut out money-off coupons and make the most of discounts. Check out www.supermarket.com before going food shopping. It will tell you where you can feed yourself most cheaply.

9 Protect your insurance: Go through all your insurances and see if you can cut the cost. Check out what you are paying for life cover, because costs have fallen and you may be able to buy cheaper.

10 Don't change your job: Most companies run a last in, first out policy. Furthermore, if your employer offers enhanced redundancy terms these may not kick in until you have been with the company for a year or two.