What happens if I update my jailbroken iPhone?

So it's pretty straight forward, I jailbroke my iPhone 4S (iOS 6.1 evasi0n untethered jailbreak) and the only thing I'm still not sure about is what happens if I update to let's say iOS 6.2?
Do I need to restore with 6.1 first? Do I just update? Will I be stuck with 6.1 because apple won't be signing 6.1 anymore?

I know I lose the jailbreak when I update I'm just uncertain how I do it.

When you get jailbreaked the software update thing in settings>general, it will be removed

One thing you don't do is update from settings. Make sure you have the latest version of iTunes then Plug your phone into iTunes SYNC/BACK UP FIRST then after that restore it then it will ask you if you want to update but don't update yet. Restore it, then after that Update it. Then after you're done that Jailbreak with evasi0n, when your finished jailbreaking and cydia is on your phone go onto itunes and restore from your backup and sync then you get your stuff back and thats pretty much it.

You will lose the jailbreak. If you want to upgrade then You need to:

1. Back up your device using iTunes.
2. Restore your device
3. Jailbreak using evasi0n (description below)
4. Restore from backup

If you want to jailbreak the right way, here's a step by step tutorial on how to do it:

Here are some cool things you can download once you're jailbroken:

This will fix it.
Hope this helps you out!