Dealing With The “Black Tax” Before It Deals With You (9mobile 5018 4940 5815 486)
The moment you become an adult, responsibilities start falling on your shoulders: seemingly out of nowhere. One of these is known as ‘The Black Tax’- a monthly stipend you are required to give your family member(s), as a sign of maturity and responsibility. This could be an added burden for young professionals, who already have enough financial pressures in this brutal economy.
In most Nigerian homes, the success of a child is the success of the whole family because they all played a role in raising you. Therefore, it’s vital to help as much as you can, to express your gratitude. However, once your generosity starts to take a toll on your finances, you need to take a step back and draw a line, my dear.
If you’re in your mid or late 20s and above, you might be required to take on specific financial responsibilities of your parents and even other family members (no matter how little) and that of your younger ones. From contributing to your uncle’s monthly fuel supply to paying for your parents’ water and electricity bill, to giving your younger sibling a monthly allowance, you’ll discover that your expenses tend to lean more to your family than your own needs.
How then you can you ensure you build wealth and remain financially stable while saddling additional responsibilities like the black tax? Here are some ways:
Don’t Tell Everyone What You Earn
You don’t need to tell everyone who asks what you earn. The only people who should be aware of your income are your parents (and maybe a few trusted friends). You have the right to keep the details of your income to yourself, so you don’t attract extra expenses.
Decline When You Can’t Afford To
It’s essential to learn how to say no, especially when you can’t afford a specific expense. You have to remember that you are saving for your future, so avoid anything that could steer you off track. Ward off unnecessary costs in a polite manner and stand your ground. Running into debt in a bid to support your family is a bad idea.
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Stick to Your Monthly Budget
Create a monthly budget and make sure it is properly broken down, expense by expense. It’s advisable to allocate a specific amount of your income to family care/ charity. Make sure the amount is fixed, and you try not to exceed that amount.
Prioritize
It’s advisable to put your immediate family first when considering your expenses. Decide who needs your help the most and allocate some amount of money to them. Make sure you can afford the money, so the fee doesn’t leave a black hole in your bank account.
Avoid Unnecessary Expenses
When you are asked for a monetary contribution, note whether the expense is necessary or not. A family member asking for some monthly cash for aso-ebi or flex money could be considered an unnecessary expense. Shey you no go flex too? Letting others profit off your hard-earned income is a no-no. (Unless you’re cool with it – and won’t go broke afterwards)
Have Clear Financial Goals
Set clear financial goals and keep them in view, so that you can know what you are working towards and avoid anything that could affect it. These goals will remind you of what you need to achieve so that unnecessary expenses will not creep in and stand in the way of you and your goals.
It’s essential to take full control of your finances, savings and income. By learning how to manage the black tax situation, you’ll be doing your current and future self a huge favour.
Are you currently faced with the black tax situation? How are you dealing with it? Share with us!
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