Hey, we made it to the end of March 2022, congratulations.
What a quarter!
But we move; because we are movers, and we are winners.
April is around the corner.
Even if you haven’t hit your financial goals for 2022, it’s time to reset, and start all over again.
Remember financial stability is the goal.
Today, I would like for us to talk about a silent financial stability killer, that has kept some people stuck in the rat race for years, and may keep them there for life if they don’t do something about it now.
Imagine collecting your salary, and whilst in the process of sending funds to your savings account, you get a text stating that one of your older relatives is sick, and they need your support.
You send the funds… The debit alert comes in, you are very agitated.
Now, there’s no problem if such a request happens just once, or very far apart.
But when it happens all the time…
You do not have any savings because you are always coming to the rescue of everyone; family and friends…
Folks always want you to assist them financially…
And you are not stable yet…
You’re trying to make a life for yourself, but these incessant bills and responsibilities keep taking you back to square one.
It’s a silent financial stability stopper.
Just in case you don’t know what it means,
As Gerald Mwandimbira of the Savings Institute, South Africa, explains it…
“ Black Tax is the process of taking a portion of a person’s salary to support older parents, or an extended family – while trying to raise a young family.”
Another definition says :
“Black tax is a term used in South Africa for money that a Black (or other person of color) professional provides to their family every month outside of their own living expenses, usually out of obligation .”- Wikipedia
How To Manage Expectations Regarding Family Demands.
Yes, while it’s not a bad thing to provide assistance to your loved ones when necessary, you need to put some measures in place, if you really want to become financially stable or secure, or perhaps free, at the end of the day.
To protect yourself against the impact of incessant demands, here are some tips to help you win against black taxes:
-Budget your income, factor in what you are comfortable spending on extended family/obligations.
-Have an emergency fund.
-Know when to say No.
You don’t have to accept every financial request thrown at you. Learn to prioritize according to importance. Know when to say NO, without feeling bad about it.
Check out this VIDEO in which I talked about Black Taxes on a TV show that aired live last Friday.
I’d like to know what you think about it.
In other news, if you reside in Canada, or you intend to relocate soon, we would be having a webinar titled “Navigating Your Personal Finance In A Time Like This’.
We would be hosting a seasoned personal finance coach who understands the Canadian financial terrain so well!
Happening on Saturday the 2nd of April at 7pm WAT.
You may register HERE.
Please feel free to share this event with your friends who may be interested.