From the archives: Local man shares how he managed to survive black tax and save towards his goals

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This man shares his black tax experience.
This man shares his black tax experience.
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Money is not something that most people find easy to talk about in many families. This could lead to some feeling their doing more than others. With a lack of financial education, many people find themselves making money mistakes that cost them dearly.

Entrepreneur Lundi Kompela, who has managed to keep his debt obligations to a minimum, admits that he’s made some mistakes but communication with his parents helped him.

Speaking to Move! he explained that while growing up, he saw that his parents were not good with money and this had an impact on his relationship with money.

“I’m a very conservative spender and I attribute that seeing my parents not being creative with money,” he says.

The 32-year-old adds that when he started earning, he paid a huge chunk of his debt because he was still living at his university residence. Living below his means has been another buffer for him especially when those unexpected expenses creep up of nowhere.

“I have an emergency fund for those unexpected expenses because I don’t want to take unnecessary loans,” he shares.

But it doesn’t mean that he doesn’t treat himself every now and then. Lundi bought himself a Mac computer when he started working which he deems as his biggest purchase. But it didn’t dent his wallet because he had planned for it and he saw it as an investment.

However, he did buy an expensive cellphone as well. “I bought an expensive cellphone because of good marketing which set me back R10 000. I didn’t need it,” he regrettably shares.

Reading books about money has also assisted him in making better money decisions. He says he was honest with his parents about what he can or can’t afford in order to manage their expectations when it comes to black tax.

“I think communication for me was very much key so to manage their expectations and they were reasonable. I chose to buy property and it had cushioned me from the high expectations,” he says.


Ester Ochse, Product Specialist at FNB Wealth and Investments says saving and investing should form an important part of your goals and money management journey. By regularly revisiting your progress, you can see if you are on track to meet your financial goals. She shares tips on how you can still achieve your savings goal.

Record your expenses: Keep track of all your expenses. From that cup of coffee, lunch at work, data and airtime. This initial step will help you see how much you spend and will give you an indication on where you need to reduce. This will help you free up some funds which can be channelled towards your savings.

Review your bank statement: Spend time looking at your bank statement to see where you need to cut expenses.  This will need to be done with great attention as it will help you identify areas that may be causing the monthly expense leakage. Once you have identified the leakages, you need to act immediately to allow more funds to be channelled towards meeting your financial goal.

Review your budget: once you have the data from recording your expenses and reviewing your bank statement, you need to relook your monthly budget and amend it in a way that will enable you to meet your goals faster.

“It is important to ensure that your budget outlines all your expenses as this will identify gaps where you will need to limit overspending. Your budget should ideally include weekly and monthly expenses. For example, if you work outside town and go home every second month, this should be factored in so that it doesn’t dent your budget when you have to go home,” says Ester.

Contribute extra: when finances allow, it is advisable to contribute extra towards your saving. This will help you meet your savings goal earlier. For example, when you receive a recognition payment at work, it would be worthwhile to allocate some of the money towards savings.

“Constantly reminding yourself about what you are saving for will encourage you to continue saving. Factor in your savings goal into your monthly budget to ensure that you make the adequate contribution to be able to meet your goal,” she concludes.

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