My financial situation:
Own apartment, $40k mortgage that will be paid off in the next 6-7 months.
Liabilities: Aforementioned mortgage, no other debt. My wife and I are currently living on around $1600/mo., excluding the mortgage.
Assets: ~10k in a private pension fund, ~60k in equity, ~10k in various other investments/savings accounts
Here's the rub: My job is a sort of experimental position and I have a contract until March 2013. It may be renewed, it may not. I'm very good at my job, but my employer is mercurial, and I simply cannot know if I'll get renewed or not.
I'm not sure how to plan for this. If I lose my job, I can't expect to get a comparable job anytime soon or at all--and if I do, I won't be able to earn more than 40k. I have no problems with a huge paycut, although it will put off my retirement.
I want to figure out what I can do now to prepare for this loss of income.