South Africans have a tradition of “Black Tax”, where people help to support family members who may be unemployed or retired. This shows care and respect for your parents and other family.

However, if you are not very careful, it can slow down your financial goals, and make affording your own home more difficult. You owe it to yourself to think of your OWN future as well as your family.

Here are some ways you can take steps to honour your family responsibilities, and STILL be able to afford to buy a house.  This is your best year to get into the property market, so let’s get you started!

1. Be disciplined about overall spending

The first step is not to indulge in instant gratification – especially if you’re using a credit card.

Many people who are recent graduates and have suddenly landed a reasonably well-paying job, it can be very tempting to spend money aggressively. Even mature professionals who have got a better job, or had a promotion can fall into this trap!

Everyone wants nice things, especially if you’ve studied and worked hard, and you and your family have made sacrifices to get where you are. However, if you spend indiscriminately and ALSO support your family, you’ll find it very hard to save, or to pay a bond.

2. Cut down on everyday expenses

There are some obvious savings you can make, like packing your own lunch for work instead of buying takeaways.  You will be forcing yourself to eat healthier as well.  Add walking 5km a day 3 days a week, and you’ll look fantastic without needing an expensive gym contract!

If you enjoy going out on your lunch hour and sitting down to a nice cappuccino, why not take your own coffee in a flask and sit in the park or a city square?  You can get fresh air, see people and STILL enjoy a hot drink. No-one is saying you can’t treat yourself to one cappuccino a week!

We all love Mnet, DSTV and Netflix – but maybe it’s time to choose your package carefully and not have everything.  

Do you have items of furniture or appliances that you don’t REALLY need? Sell them on Gumtree of Facebook for quick cash instead of using your credit card for an emergency purchase.

3. Draw up a budget and stick to it

Besides the ability to say “no” to buying nice things all the time, you must learn to draw up a budget and stick to it.

Don’t forget to include some personal luxuries in your budget – you’re only human, and you deserve to reward yourself sometimes!

4. Be honest with your family

You must be honest and realistic with your family, and how much you can afford to spend on helping them. This can help you avoid becoming “the family ATM".

It’s no good spending all your money helping your family, and going without vital necessities yourself. You also run the risk of becoming a burden on other family members one day, if you have been unable to pay into retirement, or invest in your own future.

5. Leave your cash and cards at home

If you find you spend more money when it’s in your wallet – leave it at home. Take only what you absolutely need for the day for bus fare etc. We all fall into temptation if we see something nice and have that money available. Don’t let it be available!

 And you don’t need to take your debit with you at all. Credit card? This is not a joke – put it in a container of water in the freezer. If you really, absolutely need it, you’ll have to dig in the cold freezer then wait until it defrosts. You’ll find you won’t “need” the card so often after all!

6. Start or join a Stokvel

This is a great South African tradition that allows and encourages you to save and be disciplined. It also gives you an opportunity to discuss your financial issues with other like-minded people who also want to save.

It’s a proven fact that people who save and invest money enjoy better peace of mind, and feel better equipped for the future. Feeling happier also makes you more productive at work – so you can aim for that pay raise!

Managing your finances carefully will help your whole family with wealth creation. You can still help out family members with Black Tax, but bear yourself and your future generations in mind as well.

Take a look at our beautiful affordable homes for sale and contact us if you want to know more.