Financial setbacks can happen to anyone at any time, leaving individuals feeling overwhelmed and uncertain about their financial stability. During such challenging situations, online banking can be a very valuable tool that offers a convenient and efficient way to manage finances.

By leveraging the benefits of online banking in Malaysia, individuals can overcome setbacks, regain control, and navigate their financial journey with confidence. In this article, we will explore the advantages of online banking, highlighting how it empowers individuals to overcome financial setbacks and take charge of their financial well-being.

Assess the Situation and Create a Plan

Start by evaluating your income and identifying any changes or reductions that have occurred. If you have experienced a decrease in income, whether due to a job loss, reduced working hours, or a pay cut, it is important to factor in this change when creating your plan.

Next, assess your expenses to determine where adjustments can be made. Identify essential expenses such as housing, utilities, transportation, and groceries that must be covered. Look for opportunities to reduce discretionary spending on non-essential items such as entertainment or luxury purchases.

Take a closer look at your outstanding debts and consider their impact on your financial situation. Prioritise debts with higher interest rates or those that require immediate attention, such as credit card debts or loans with upcoming payments.

With a comprehensive assessment of your income, expenses, and debts, create a detailed financial plan to navigate the setback. Set specific and achievable goals, such as reducing expenses by a certain percentage or increasing income through alternative sources. Take proactive steps to cut expenses, explore additional income opportunities, and make timely payments towards your debts.

Utilise Online Banking Features

One of the primary benefits of online banking is the ability to track your account balances in real time. With just a few clicks, you can access up-to-date information on your checking, savings, and credit card accounts.

The HLB Connect Mobile Banking App provides access to your transaction history, allowing you to review and track your financial activities. You can view detailed information about your deposits, withdrawals, purchases, and payments.

Online banking offers the convenience of transferring funds between your accounts or to other individuals or businesses. Whether you need to move money between your checking and savings accounts, send money to a family member or pay a bill, online banking simplifies the process.

In Malaysia, Online banking services allow you to set up and schedule online bill payments effortlessly. You can add payees, such as utility companies, credit card providers, or service providers, and make payments with just a few clicks. As a matter of fact, you can conveniently perform bill payments to up to 5 favourite billers in one go via Hong Leong Bank’s mobile banking app, HLB Connect App.

Explore Balance Transfer for Credit Cards

One of the primary advantages of a balance transfer is the opportunity to reduce interest charges on your credit card debts. Credit cards often carry high-interest rates, making it challenging to pay off the balance efficiently.

Balance transfers typically come with a promotional period during which a lower interest rate is offered. This period can range from a few months to over a year, depending on the credit card issuer and the specific terms of the promotion.

Before proceeding with a balance transfer for credit cards, it is essential to carefully assess the terms and fees associated with the transfer. Some credit cards may charge a balance transfer fee, typically a percentage of the transferred amount.

While a balance transfer can provide significant advantages, it is important to have a repayment strategy in place. Take advantage of the lower interest rate during the promotional period to make substantial progress in paying off your debts. 

Review Your Budget and Cut Back on Expenses

One of the valuable features of online banking is the transaction history, which records every expenditure you make. By carefully examining this record, you can gain insights into your spending habits and make informed decisions about where to cut back.

Start by taking a close look at your transaction history over a defined period, such as the past month or quarter. Essential expenses include things like rent/mortgage payments, utilities, groceries, and transportation costs, while non-essential expenses consist of discretionary spending, such as dining out, entertainment, subscriptions, and impulse purchases.

Once you've categorised your expenses, focus on the non-essential category. Look for patterns or trends that reveal areas where you might be overspending. For example, you may find that you're spending a significant amount on dining out or multiple subscription services that you rarely use.

After identifying non-essential expenses, consider which ones you can temporarily eliminate or reduce. For instance, you could reduce the number of times you eat out per month or cancel unused subscription services. 

Cutting back on expenses doesn't mean sacrificing all the things you enjoy. Instead, focus on finding cost-saving strategies that allow you to continue enjoying certain activities while being more mindful of your spending.

Create an Emergency Fund

Before you start building your emergency fund, determine your savings goal. This should be an amount that provides a comfortable cushion to cover unexpected expenses, such as medical emergencies, car repairs, or job loss.

Using your online banking platform, schedule automatic transfers from your primary account to your dedicated emergency fund savings account. Choose a frequency that aligns with your income, such as bi-weekly or monthly transfers.

Regularly evaluate your financial situation and make adjustments to your contribution amount if necessary. If you receive a raise or additional income, consider increasing the amount you transfer to your emergency fund. 

Take Advantage of Online Banking

Online banking eliminates the need for physical visits to a bank branch, providing unparalleled convenience and accessibility. With a few clicks, you can access your account information, transfer funds, pay bills, and manage your finances from anywhere, at any time. This flexibility of online banking is appealing to young adults who lead busy lives and need a banking solution that fits their on-the-go lifestyle.

Contrary to common misconceptions, online banking services are highly secure when proper precautions are taken. Hong Leong Bank employs robust security measures to protect their customers' financial information.

Hong Leong Bank also provides round-the-clock customer support for fraud cases. Young adults who are just starting to manage their online banking account can access assistance, clarify doubts, and resolve issues via various communication channels that the bank has made available i.e. Official Whatsapp channel, Official Facebook, Twitter and Instagram page, Online banking inbox and Official Contact Centre making it easier to address concerns without the constraints of traditional banking hours.

In conclusion, overcoming financial setbacks is made easier with the convenience and capabilities of online banking. By leveraging online banking features, individuals can assess their financial situation, create a plan, and track their progress in real-time. For young adults, online banking offers unparalleled convenience and accessibility, aligning with their busy lifestyles. By embracing online banking, individuals can overcome financial setbacks, regain control of their finances, and confidently navigate their financial journey towards a brighter and more secure future.