Kaya 959 Reporter
Young adults across the country have all grappled with the realities of ‘Black Tax’, and in the last two years, the realities have weighed heavily because of the tough economic times.
‘Black Tax’ is when one has to use the limited resources they have once they begin making some form of income to support themselves as well as their extended families.
In many families, the expectation of stepping up and assisting at home once you get a job is non-negotiable.
In many instances shaking the shackles of Black Tax off requires one to be disciplined, with a clear strategy on how to navigate this generational reality.
Kaya Biz with Guguletthu Mfuphi spoke to Khwezi Jackson who is the Employee Benefits Consultant at 10X Investment, to unpack ways to lessen the burden of ‘black tax’.
Listen to the full conversation here:
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Know Your Budget
Jackson shared the important things people need in order to shield themselves from the impacts of ‘black tax’.
He said the reality is, sometimes when you are always looking after your family you end up having nothing left, which means you are unable to save for your retirement, which as a result makes the cycle of Black Tax continue; as your children need to look after you when you get older.
“A good place to start is that as black people in South Africa we have to acknowledge that black tax does indeed exist, and impacts people in our society…Another good place to start is our budget. Once we’ve come to acknowledge that I am in a situation where I am looking after the family with this one income, the one important thing to know is where is my money going.”
‘Once you have a full picture of where your money is going perhaps you can know where to cut back.”
Have honest conversations with your family
This can not be overstated, it’s important to have a genuine conversation with your family members and to let them know at all times what your financial position is.
Have a ‘rainy day fund’
There’s always going to be something that happens unexpectedly, you must always be financially prepared for any eventuality. Jackson shared how we all saw how devastated people were when COVID 19 hit, and many lost their jobs. He encouraged Kaya 959 listeners to put money away.
“People always say you should have 3 to 6 months of your monthly spending saved up,” says Jackson.
Always make sure your cup is full
Another very important thing to do is to always put yourself first. This can be very difficult to do if you are the sole provider in your household. You need to make sure the engine that generates the income is working. Make sure you always have a grip on your own finances.
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