From the look of things in the African business sector, the most common and undealt issue that causes poverty, bankruptcy, or financial struggle is Black TAX.

And it no news that most African professionals, businessmen, and women, vibrant entrepreneurs don’t even know what black taxation is, and neither do they know how to confront it.

Black tax disrupts the Nigerian man’s future plans.

As such that every Nigerians are now advised to budget the amount of money they wish to dispense for their black taxation and to never exceed it if they really want to improve their investment liquidity.

It no new thing that black tax is now very important for every African child (so pay your black tax).

But unnecessary black tax will disrupt your investment plans.

But then, what is black tax and how can you deal with black tax so as it doesn’t disrupt your financial future plans.

What is Black tax

Black tax is the income you as a businessman or woman, professional, or whatever your career option is, gives to your family members as a support to them.

This occurs mostly in cases whereby you are the only most wealthy or successful person in your family tree.

And as such you need to take care of your family and that is a priority.

So your income that should have been for your upkeep, savings, or investment plans will now be spilled for your black tax.

Because you can’t be doing well and your sibling, parent, or well-wishers are struggling to eat or take care of themselves.

Oh shit.

For instance, Mr. Adebayor is an entrepreneur that has a lock-up shop in the main market of Lagos.

He is a dealer of phones and accessories and then he happens to be the eldest in his family tree with 4 siblings.

Let assume, 2 of Mr. Adebayor sibling are in the university whereas 2 are aspirant, and Mr. Adebayor parents are business people also but their business is not kicking so well as that of their son (Mr. Adebayor)

In this case, Mr. Adebayo is the only light in the family and as such will have to share the light in the lives of his siblings and family.

And how will he do this?

We all know that he has to support his family with feeding money or monthly dues, also, take part in the training of his young ones who are still in school.

So now you can see so well that Mr. Adebayor’s income from his phone and accessory business will not just be for himself alone, but will also be split to his family.

That amount of money or assistant Mr. Adebayor is rendering to his family is what is known as black tax.

For sure, Mr. Adebayor also has personal expenditure to care for from the income through is phone and accessories business, and also, Mr. Adebayor’s investment or saving plans still depend on his business.

So if Mr. Adebayor is unable to leverage is income so as he can pay off his expenses, pay his rent, pay his black tax, and also fund his business to the next level.

Then Mr. Adebayor business will be doomed.

Black tax is seen as an obstacle to professionals, and not being able to deal with black tax has caused the most business failure, due to miss-management of funds.

But then, in a rightful sense, the black tax should be seen as a commitment and as such should be taken into consideration but checked.

How can you avoid Black Tax

Black tax cannot be avoided. It is your duty to ensure you take care of your family because that what the struggle is for.

To ensure your loved ones is doing just as fine and you are.

But then, the only way to lessen your black tax is to ensure, that you manage your finances better, and to create financial freedom in the lives of members in your family.

Should in case you are the eldest or most successful in your family and you find yourself drowning in black tax how do you deal with it?

7 ways to deal with black tax before it deals with you.

These are proven 7 ways you can deal with black tax without having to stop funding your family to solve their problems.

  1. Keep your income private
  2. Embrace multiple streams of income
  3. Create a budget and stick to it.
  4. Know when to say NO
  5. Focus on the cashflow
  6. Have a discipline account
  7. Stay Healthy

Keep your Income Private

The only one that has the right to know what your monthly or total income is. His YOU and not even your parents or friends.

When people know how much you earn, they don’t care to know what your investment plan is, they want to BILL YOU, they want to borrow.

They don’t care about your groceries, your upkeep, and other of your personal budgets.

It so crazy when people know how much you earn they know how much to bill you, and that’s true.

They scale your income and then bill you high. So keep your income private.

Embrace Multiple Streams of Income.

Never depend on a single source of income, just like the popular saying goes.

Don’t put all your eggs in one basket.

Just as a single river cannot water the garden of Eden, a single source of income cannot finance your life.

You need to create more routes through which more money keeps coming into your wallet on a passive term.

  • You have bills to pay, and bills payment doesn’t have an end.
  • You have yourself to take care of
  • You have your family to take care of

So don’t ever use one business to do the job.

Create a Budget and Stick to it.

I have never come across a successful businessman or woman that doesn’t have a budget.

Budget is an amount of money earmarked for a particular activity.

Your income should be budgeted so as the moment it arrives in your wallet, it has a purpose.

This keep check on unnecessary expenditure.

  • You should have a budget for how much you want to  spend on groceries
  • A budget of how much you want to spend on holidays
  • The budget of how much you want to set aside for your black tax.

When you start to prioritize the way you want your money to go then things begin to fall into place and you more room to keep a check on your income.

Let say you earn N50,000 every month and then you have decided to budget N10,000 as your black tax.

Immediately your monthly payment comes you take off your black tax and you’re for real done with black tax for that month.

If you not sure of how to go about budgeting then try this 7 baby steps to budgeting

Know when to say NO

The answer to every request should not be a Yes.

In my case, if I have a budget of N20,000 monthly as a black tax, there’s no room that is going to make me exceed that amount or otherwise.

Being able to make a decision will save your form unnecessary expenses or promises.

Focus on the Cashflow

In whatever business you do or whatever your job is, focus on the cash flow.

You need money for everything.

Most businesses fail because they were busy focusing on their offices, branding instead of cashflow.

You need money to do everything.

  • To run your business you need money
  • To pay your rent you need money
  • To pay your black tax you need money

So If you don’t focus on cash flow, you are going to get yourself in debt.

Have a Discipline Account

A discipline account is not to be an account in terms of saving but rather saving in the form of investment.

Mistakes, most people make is to save money in banks.

Keeping money in banks only helps you to reduce your wealth, you can easily make needless spending.

For instance, if you have 5Million in your savings account. You feel you are rich and can easily buy Toyota corona of 1.5Million.

But then, if you have invested the 5Million in stock or other worthy investment you would instead be expecting an increment instead of the Toyota liability.

Want to know more about Stock investing, then learn more about The Nigeria Stock Exchange Market (NSE)

Stay Healthy.

Stay safe and healthy. Only a healthy man can do business.


Black tax is an obligation to every African child, and as such we should be able to be live comfortably with it.

Hedging money, creating multiple streams of income, budgeting and other means discuss are good to keep a check on black tax.

Meanwhile, do not just start any business with your money; ensure you participate in systems that allow you to prevent risks.

For example, you might use “risk avoidance”, “risk transfer”, and etc.

Endeavor to continuously do that which gives you money and never to dive into a new system until you study it well enough and get a mentor on it.

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