If you are Nigerian or African, the concept of black tax is not alien to you. Even African Americans go through this process daily. However, most people are unaware that their situation is called Black Tax. This situation is tagged black tax because it is common among black people.
What is Black Tax
This a tradition amongst black people that have successfully normalized entitlement to the money of others, in the name of family or blood ties. This culture has bestowed on individuals the responsibility to care for the needs of their parents, siblings, and even members of their extended family.
Accordingly, when people receive their paycheck and construct their budget, a portion of it is sapped by these responsibilities. This tiresome system is known as black tax.
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Effects of Black Tax
Fulfilling one’s black tax is a huge responsibility that comes with dire consequences. The impact of the black tax system on the financial growth of anyone being taxed is precarious.
Black tax Impedes Savings and Financial Progression
Thanks to the black tax an individual can work for years, earn a fair salary, and still can’t enjoy the basic luxuries of life. With uncontrolled black tax, you are at risk of becoming a basket. Every shower of money earned by you will simply go down the drain. If you ever see someone with a good job yet the money doesn’t reflect on them, check carefully, they are a victim of black tax.
Even when you make a budget, unforeseen family expenses can occur disarraying your budget and saving plans.
Some consequences of the black tax are that they have a deep impact on our finances and hinder our saving capacity.
It is Overwhelming
Imagine having to fend for four younger ones and two elderly parents? Time could freeze but the billing won’t ever go on a break. From school fees to hostel rent, and steady medications. You are in for a life of continuous spending. If people perceive you are successful, then your extended family members will equally bombard you with their financial needs.
The above can hamper your growth, stop you from owning your own home, and raising adequate capital for your dream business. If care is not taken, it could affect the quality of your life after retirement.
Failure to Meet Up with the Demand of Black Tax Earns You A Bad Name
Everyone loves Santa and no one likes the Grinch. They want you to be Santa all year round without a care of how it affects your finances negatively. The moment you put a foot against this toxicity you become the Grinch no one likes.
A lot of persons have been tagged as Wicked by their family members due to the entitlement mentality of black tax.
Black Tax can Adversely Affect a Marriage
Black tax can put a strain on a marriage, especially when your spouse finds the taxing of your family members excessive. This could lead to animosity and conflict between your spouse and your family members, thereby straining the marriage.
Black tax hinders financial growth by a mile. Next week I shall discuss ways to limit the effects of black tax.
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