BMO’s Post

Apart from being a healthcare professional with a varied history of working in government, private, and the NGO (Non-Governmental Organization) world, I have always loved writing. Here is a link to a blog post I wrote on Black Tax. Many people have come across this topic. This is my take on practical tips you can use to handle the reality. https://lnkd.in/digbkjer

The Secret to Handling Black Tax Without Going Broke. What is Black Tax? Black tax is the financial support you give to your family. While it's a blessing to help, if not managed well, it can cause stress and prevent you from saving and building wealth. Here's how to handle it: - Keep Your Earnings Private: If people don't know how much you earn, they are less likely to feel entitled to your money. Try to keep your earnings confidential. - Set a Black Tax Budget: Decide how much you can afford to give each month. Once you reach that limit, ask them to wait until the next month unless it's an emergency. - Have a Necessity Test: Only pay for essential needs like education and basic living expenses. Avoid paying for non-essential items like parties or drinks. - Learn to Say No: Understand that if you weren't available, your family would find other ways to solve their problems. It's okay to say no. - Get Insurance: To avoid unexpected expenses, invest in insurance such as home, health, and comprehensive car insurance. This will reduce financial stress. - Pay Yourself First: Save money for your retirement to avoid dependency. Consider using a wealth-building plan to set aside this money. - Set Financial Goals: Establish specific, measurable, achievable, relevant, and time-bound goals to achieve financial freedom and wealth. Starting with a wealth-building plan on www.level.africa can help you stay on track. Transform Your Finances in Just 30 Days! Join our FREE 30-Day Financial Wellness Bootcamp and take control of your financial future. 👉 https://lnkd.in/dJANmWRR

Black tax is the provision of financial assistance to family members facing economic hardships, which can encompass parents, siblings, and other relatives. The impact of black tax varies, with individuals from disadvantaged backgrounds experiencing a more significant burden in comparison to those from more affluent families. Additionally, some individuals may not feel the effects of black tax, as they choose not to contribute. The question of whether individuals should bear this financial responsibility is a subject of debate. Ultimately, how people navigate the challenges of black tax is a personal choice influenced by their values, financial circumstances, and family dynamics. Effective financial planning and open communication with family members can play a crucial role in managing these obligations. However, policymakers should also consider the societal impact, such as reduced disposable income, when making decisions related to taxation.

💡Black tax. It is not a formal or legal tax but rather a term used to describe the financial responsibilities and obligations placed on individuals who have succeeded in improving their socio-economic status, often through education, career advancement or any income earning profession or talent. The concept of black tax arises from the fact that many black individuals who achieve higher education or better job opportunities often become a primary source of financial support for their extended families and communities. They may feel a responsibility to provide financial assistance to family members who are less fortunate, struggling with poverty, or unable to access the same opportunities. The support can take various forms: 1. Fiscal assistance - Paying for medical expenses, family members education or other necessities. 2. Basic needs – Paying for housing, bills and food. 3. Social obligations – Covering cost of funerals, weddings, crowd-funding and other events. While the intention behind providing this support is often rooted in a sense of duty, love, and responsibility towards family, it can place a significant financial burden on the individual who is already dealing with personal financial commitments. ✨It is wise to separate emotional attachment to funds earned by an individual towards family, investments or any economic stride. One must ensure that his/her home is in order before going for making a fiscal decision towards anything or anyone. 🔄

Every aspect of car ownership is more expensive for Black Americans, according to a research study co-authored by Quinn Molloy, Ph.D. of our Boston team. Some key findings include: 👉 9% more Black households are cost-burdened by car loans than white households. 👉 18% more Black households are cost-burdened by car repairs than white households. 👉 21% more Black households are cost-burdened by gas expenses than white households. 👉 29% more Black households are cost-burdened by car insurance than white households. Public transit was the only area where Black households experienced fewer cost burdens, which highlights the need for diverse transportation options. Reducing our vehicle-dependence is key to promoting transportation equity and building more sustainable communities. Check out a summary of the study in this Streetsblog USA article: https://lnkd.in/gpwWYdET

HOW TO HANDLE BLACK TAX "Black tax" refers to the financial obligations or responsibilities that some individuals experience. it includes providing financial support to extended family members or contributing to community needs. While supporting family and contributing to community development can be important cultural values, it can also place a significant financial burden on individuals and hinder their own financial well-being. Here are some strategies for handling black tax: Set Boundaries: Establish clear boundaries around your financial resources and obligations. Determine what you can realistically afford to contribute while still meeting your own financial goals and needs. For example, I have an account called SEED ACCOUNT, that is where I do all my giving from, once it is exhausted, virtue has left the account. Nothing more till virtue returns. Communicate Openly: Have honest and open conversations with your family members clearly communicate what you can and cannot afford to contribute, it is not every every aso-ebi you must buy. Prioritize Self-Care: Take care of your own financial well-being first. Prioritize saving for emergencies, retirement, and other long-term goals before committing to supporting others financially. Set Realistic Expectations: Manage expectations by being honest about what you can realistically afford to contribute. Encourage family members to seek additional sources of support and explore ways to become more financially independent. Handling black tax requires a delicate balance between supporting loved ones and protecting your own financial health. By setting boundaries, some will call you proud, start a character assassination campaign etc. Be kind and firm.

Have you ever heard of the term 'Black Tax'? This is a concept that's gaining more recognition and sparking important conversations in our communities. 📈 What is Black Tax? In simple terms, Black Tax refers to the extra financial responsibilities shouldered by Black professionals to support their families and communities. It's not an official tax, but rather a cultural and economic phenomenon with deep roots and significant impacts. 💡Key Findings from Researchers: The research partnership with Bow valley college by Bunmi Obateru looked into how this impacts entrepreneurship amongst black immigrants in Alberta. Extended Financial Support: A large percentage of Black individuals provide financial support beyond their immediate family, often extending to extended family and community members. Impact on Savings and Wealth Accumulation: Our study revealed that this additional financial burden often impacts the ability to save and accumulate wealth, creating a cycle that's hard to break. Emotional and Mental Toll: Beyond finances, there's an emotional aspect to Black Tax. Many feel a strong sense of obligation, which, while admirable, can lead to increased stress and pressure. Why It Matters: Understanding Black Tax is crucial in recognizing the unique challenges faced by Black individuals - career professionals and founders alike. It's about empathy, awareness, and potentially rethinking how we support diversity and inclusion. Videography: Mikel Obi (Nigeria Soccer/Footballer)

According to recent Intuit QuickBooks survey data, 75% of Black small business owners agree that successful Black businesses are critical for a thriving Black community.    Let’s recognize and support the incredible contributions Black-owned businesses make to our economy and local communities this #BlackBusinessMonth. Diversity fuels growth and innovation, making us all stronger together.    Share your favorite Black-owned businesses or entrepreneurs of color in the comments to continue the conversation.