The last available figures from the Department of Statistics confirm that it may take some time to find a new job. The worst-case scenario, when a person is seeking for a job for one year or more, occurs to about one-third (28%) of all jobseekers. 17% find work within 6-11 months, and 19% - from 3 to 5 months. For 17% of the people the job search doesn't last very long (1-2 months) and only less than 1 out of 10 find a job in less than a month.
“Statistics show that there is no need to overestimate your potential and it is very important to have a financial reserve that allows you to survive and cover at least the necessary expenses during your job search period. It is one thing to save for the holidays, but it is quite different to accumulate the required amount of money for an unknown length of time, when savings will be the only source of livelihood and it will be needed for food and utilities, bank liabilities or child education. Unfortunately, surveys show that a large part of the population would survive just a month with their savings and would be forced to borrow,” says Donata Stoškuvienė, Head of Customer Experience Management at Credit24.
A survey conducted last year by the Bank of Lithuania reveals that in case of losing the source of income 26% of Lithuanian households could live for up to 3 months. Also 26% would not last longer than 1 month and 12% would last just one week.
“Only 17% of households in Lithuania could survive beyond 6 months without borrowing money. It does not make up even one fifth of our population, when it takes as much time for about half of those who are looking for a job to find one. Therefore, the first piece of advice would be to not make urgent decisions and not to stop working without realizing your real chances of finding a new job, especially if the family has children or greater financial obligations. However, it is not possible to plan everything in life, so it would be wise to save in case of all kinds of unfortunate events,” - says D. Stoškuvienė.
Everyone can save money
People manage their budgets differently based on their daily needs: some put away a certain amount of their money for contingencies as soon as they get paid, while others save what is left of their wage at the end of the month. Some live only one day at a time and do not save money to ensure a financially secure future. Because saving money is an individual decision, there is no universal formula that would work out for all the people. However, D. Stoškuvienė says that with a reasonable budget allocation, a certain amount of money can always be saved.
“The essential expenses for food, housing, transportation are obviously inevitable, but it is possible to reduce them as well. For example, do more cooking at home and try to avoid wasting food. Changing your car to public transport will save you not just on the amount of money you spend on fuel, but also will help you avoid such expenses as car maintenance or insurance. And replacing it with a bike would save you a sports club subscription,” says a financial expert at Credit24.
D. Stoškuvienė emphasizes that it is not necessary to give up entertainment or exciting new purchases, but it is important to make a budget and avoid living “from paycheck to paycheck” in order to save money for future surprises and spontaneous career changes.
“If you get an average salary and save 10% from it every month, you will accumulate about 2000 euros over two years. If your essential expenses make up to around 60-70% of your salary, in case of losing your job, these savings will guarantee that you can live without debt for three months. By saving accordingly, you can live calmly and be ready for spontaneous changes at work,” advises D. Stoškuvienė.
