Finances

8 Ways To Deal With The Harsh Realities Of Black Tax

8 Ways To Deal With The Harsh Realities Of Black Tax. When you get your first job, nothing is more liberating than the thought of finally getting your own salary. You think of all the things you’ll be spending your money on that you couldn’t afford while you were studying and unemployed. The sad reality is that all this might take some time. Especially if you come from a black African home, where you have the responsibility of financially taking care of your extended family.

1. Choose Your Battles

Pick certain things that you are willing to support. For example, you can help with education. That way, you will not get ad-hoc financial requests for parties or fashion items.

2. Set A Deadline

Let it be known upfront when you expect to see the fruit when helping someone to allow you to focus on your savings objectives..

3. Plan For The Unexpected

Invest in financial vehicles such as funeral cover that can help you smooth out financial stress related with helping when there are family funerals.

4. Give But Don’t Spoon-feed

Don’t destroy the person that you are giving to by letting them depend on you. Help them empower themselves so that they too can give to others.

5. Let Everyone Take Responsibility

Work with your extended family to help them make sound financial decisions when they start earning an income. Sometimes you need to let everyone experience the discomfort of their bad financial decisions for them to learn to make better decisions.

6. Exercise Financial Discipline

You cannot do an infinite number of things with a limited amount of money. You need to trade off, otherwise you will end up so heavily indebted that you may even lose your assets.

7. Put Money Aside For Yourself

Give what is left after you’ve saved for retirement. Ensure that you will retain independence in your old age, otherwise you will perpetuate the cycle of dependency.

8. Instill Financial Discipline In Your Immediate Family

Start with your own children. Let them know that you have a budget to stick to when you shop. Start managing their expectations from a young age by limiting impulsive spending and talking about money with your children or the young people in your life.

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