Black Tax: How To Build Wealth While Financially Supporting Your Loved Ones

Black Tax: How To Build Wealth While Financially Supporting Your Loved Ones

Black tax refers to the burden people feel when financially supporting their loved ones. The term has its origins in South Africa. Many people struggle with getting the right balance between building wealth and caring for their family money-wise.


Here are some tips to help you balance building wealth and supporting your loved ones.


  • Choose Guilt Over Resentment


Some people emotionally fluctuate between guilt and resentment as they try to get the right balance. Feeling guilty involves blaming yourself for your decisions. The emotion of resentfulness is feeling you are receiving unfair treatment from others. 


Choose guilt over resentment if you ever face this dilemma. Since you direct the guilty feeling to yourself while you direct resentment toward others, it is easier to handle as you will not need others to resolve it. Talk to yourself positively and remind yourself that you are choosing a sustainable way of helping your loved ones.



One of the keys to achieving any financial goal is to know where all your money is going. Zero-based budgeting is a tool that gives you such control. The clarity can help determine how to support your family financially sustainably.


In Zero-Based budgeting, you create a spending plan for all your income. When you subtract your expenses from the available money, the amount remaining should be nil. You can include essentials, savings, and investments in your budget allocations.


  • Face Your Reality


Many people struggle with facing the reality of how loved ones handle money. Accepting family as they are can help you come up with workarounds. Embracing truth will lessen the emotional rollercoaster when dealing with those you support.


You can pay bills directly to prevent falling back on payments due to irresponsible habits by someone you support. You can buy goods yourself to avoid wastage or inflation of wants. You can get necessary insurance covers for your loved ones to limit the impact of illnesses on your finances.


  • Bite Small Chunks


Be okay with breaking down big financial projects into smaller support portions over time. You can use this method to manage expectations without giving up other personal priorities.


When your loved ones ask for support on big projects, you can share a time frame that financially makes sense for you. Choose a timeline that will not slow down achieving your money goals.


  • Be A Model


Many people struggle with negative emotions when dealing with unwanted financial behaviors we see in our loved ones. You can become an enabler if you don't deal with such uncomfortable feelings. Handling the root cause of perspectives can lead to a change of mind.


Taking this route may be initially uncomfortable, but with time, it becomes easier. Being firm yet respectful can trigger your loved ones to consider their finances in a new light. The result can be a win-win for all parties.


The Healthy Balance


Black tax does not have to be a financial negative. The experience may become a trigger for developing mental, emotional, and relational resilience.

Back to blog