Here are three things that you should do as soon as you start earning that paycheck.

(Re)build an emergency fund. Many would make the mistake of blowing the first salary on petty things – treating friends, splurging. But the first thing that you should really do is to build an emergency fund. The recession has taught us that you should now have at least a year’s worth of living expenses saved and readily on hand. So start saving before you splurge.

Enroll in the 401k. If your employer offers contribution matching, enroll in the program right away and try to contribute the maximum that your budget allows.

Maximize health insurance. Health care can be a huge expense but if your company offers one, then opt in. You oftentimes get a better deal when you get it from your company.

Emergency fund. The recession has underscored the importance of an emergency fund. Be sure to have at least six months’ worth of living expenses in your emergency fund. That means it’s money that can easily be accessed in case crap happens. The job situation today hints that a years’ worth of living expenses as emergency fund isn’t that bad. Replenish it before spending your money on other things.

Insurance. Aside from your emergency fund, you can also protect yourself and your stuff through insurance. While many might claim that these can be an unnecessary expense, my own experience has taught me to value insurance. Prioritize getting health, life, home, and car insurance policies. Just shop around to get the best deals.

Conventional financial planning pegs the number to be 3-months’ worth of living expenses. The recession showed that it should now be at the very least half-a-year’s worth. If it’s possible to up it to a year’s worth, then better.

In case of such setbacks, your emergency fund should be there to make sure that you have ample flexibility to get back on track. It should, however, never run dry.

While it’s meant to cover your monthly expenses, you should, still, at the very least, make sure that you minimize its use.

Do odd jobs to cover daily expenses. Sell your old stuff to support your fund. Most importantly, cut costs.

Being jobless would definitely trim many of your daily expenses but with no income, you should be ready to give up some parts of your lifestyle. All your previous “necessities” (e.g. cable bill, dinners, deliveries, movies) will not be luxuries.

Try to get back on the job hunt as soon as possible. If you have a six-month emergency fund, then make the third month your deadline for getting work. This would ensure that you’d still have a bit of buffer left for other possible emergencies.

Thing is, life tends to screw you over big time once in a while. It might be as communal as a recession or as isolated such as having a major boo-boo at work. So everyone has to be prepared.

Traditionally, the emergency fund’s money that you stash away that should cover at least three months’ worth of expenses. During the early parts of the recession, many believed that it should be six months’ worth. Now, the safe number seems to be enough money for a whole year.

Here’s a guide to having one:

1. Build an emergency fund – This is basically a savings project and would require you to probably employ some lifestyle changes. You have to commit part of your income to it. If you feel that a year’s expenses is a tough target, then plan for a three-month emergecy fund first. Remember, you have a target and the sooner you get there, the better.

2. Protect your emergency fund – By no means should you tap into your emergency fund, unless, of course, it’s a real emergency. Fancying that new iPod? Make it a separate savings project.

3. Replenish your emergency fund. – So the poop hit the fan. Big deal. At least you won’t be living like a hobo for the meantime. Just be sure that you work your way to earning again and prioritize earning back what you spent of your emergency fund.