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Financial pressures affecting upwardly mobile people of colour in South Africa

We all know we should save. After all, the day may come when you are no longer able to work the long hours you do now, or the economy may take another pounding and a round of retrenchments at your company could lead to months without work. This is not something we like to think about when everything is going well, but this is exactly the time when saving aggressively is most pertinent.

However, it is much easier said than done, especially for upwardly mobile people of colour in South Africa. While saving is a tough notion across all races, black and coloured men and women in our country have an extra set of hurdles to overcome on the road to financial prosperity:

date: 18/09/2017Author:

Black tax

The term 'black tax' refers to the responsibility black professionals feel towards their parents and extended families. This affect the person helping, as they are unable to focus on their future due to educating siblings or providing housing for their parents. Many feel obliged to assist at home since the parents sacrificed for their education. Often, a person of colour may have a self-sufficient family, but be affected by black tax when they marry a person who takes care of their parents, siblings or other family members.

Emotional spending

When you come from a disadvantaged background, and get to a point where you start earning good money, there is the temptation to try and make up for everything you lacked growing up. This has the potential to lead to emotional spending, and the purchase of big-ticket items that you weren’t fortunate enough to have in your home as a child.

A lack of financial mentorship

Similarly, men and women who weren’t raised in prosperous environments often don’t have a father figure or mentor to turn to when it comes to big financial decisions. It’s easy enough to ask your father or mother for advice on investing your money or how to save for retirement if they did so themselves, but when this is not the case, making sense of the investment landscape can be quite confusing.

Have you overextended yourself in the bid to take care of your family or to maintain a certain lifestyle?

Now is the time to take things in hand. Get in touch with Libertine Consultants representative to learn more about our debt counselling services, and how we can help you to do away with your crippling debt in a structured way, so you can pave the way to the prosperous future you deserve.

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