Black Tax

Have you ever heard of the term black tax? According to the urban dictionary, it is the extra money that black professionals are expected to give every month to support the less fortunate families and extended family.

It causes financial distress as one usually has no savings left after having to share their salaries with the entire family. This adds an added burden and stops one from building generational wealth.

black tax

Sometimes you may be expected to pay school fees for nieces and nephews. Both men and women are affected by black tax but men sometimes are worse hit as they are not just expected to provide for their own relatives but also that of the women in their lives. It’s not strange to expect a new groom to inherit the financial responsibilities of his bride’s family.

One major downside of this is that it makes those affected to be unable to attain their full potential because of the huge financial burden they carry.

There’s nothing wrong in assisting financially but when it becomes compulsory like you owe people anything, it becomes a problem. It’s not wrong to care for our families but we should also plan for our own financial future. To successfully plan for your own future it important to:

Draw up a  budget for financial assistance and stick to it. Once it’s exhausted for the month, do not dip your hand into your savings.

Prioritize requests. Decide who needs help the most. Focus on financial requests that require more attention. You can’t provide for everyone who asks you for financial assistance. For instance, if someone needs school fees and someone else needs an additional pair of sneakers. You can take care of school fees.

Avoid telling anyone exactly how much you earn. Avoid attracting extra expenses and save for a rainy day.

Learn to say no to things you can’t afford. Never borrow money to solve financial requests especially if it’s not life-threatening to avoid running into debt.

Have clear financial goals and avoid anything that could affect them especially unnecessary financial demands.

Avoid unnecessary expenses, if people want to pay for an aso-ebi or go clubbing they should earn the money themselves.

Take full control of your finances, assist those in need but remember that you have a future to plan for too.