Besides athletes having the ability to earn money off of their name, image and likeness, the can now also become entrepreneurs or work part-time as a student-athlete. Securing your first NIL deal, partnering with your first client, your receiving your first paycheck is an exciting feeling!
But how can you responsibly spend those first few dollars you earn? As an athlete, here are a few of the money moves I did after college that I would highly advise current athletes consider.
9 Ways Athletes Can Make the Most of Their NIL Earnings
Focus on necessities. If you’re overdue on purchasing basic items- buy those first. I’m referring to healthy groceries, household essentials or personal care products. This might not be exciting but these things will enhance your quality of life.
Pay for education. Use your earnings to pay for school expenses or pay of debts related to school. When you have debt, you’re decreasing cash flow each month making it harder to save and invest. Investing in new skills is also a great way to enhance your value to future employers.
Build your savings. Having an emergency fund can put you at a great advantage in life. Start by putting a small amount of money into your savings account with each NIL deal or each paycheck you receive. Over time you will build a great safety net to fall back on.
Invest in the stock market. Investing in the stock market is one of the best ways to grow your financial portfolio. I always suggest that athletes do their research before they invest, and only invest funds that they an afford to lose. The stock market is not predictable, so investing funds that are separate from your emergency fund is highly advised.
Work with a financial advisor. A financial professional can help advise athletes on how to manage their income, provide investment suggestions and ensure they’re paying taxes. While it costs money to work with an advisor, working with one is some of the best money I’ve spent.
Build good credit. Opening and using a credit card responsibly is one of the best ways to build your credit. With a great credit score, your able to get the lowest interest rates on big ticket items like furniture, cars and homes. If you don’t have a credit card yet, open one and practice good credit habits such as paying off balances, making payments on time and redeeming points.
Buy property. Buying a home or condo is a really nice money move, but a very big one. If you’re at a point in your life where you can take on the responsibility that comes with being a homeowner, putting a down payment on a property can help grow your earnings substantially over time.
Work with a therapist. You won’t see any financial gains working with a therapist, but attending my biweekly therapy sessions is one of the best things I’ve done for my mental health. Athletes juggle so much, so paying a small fee to speak with someone often can help boost overall wellness and discuss matters you may not want to share with family or close friends.
Purchase reliable transportation. *Note: I did not say a ‘new car’ or ‘fancy car’*. If a vehicle gives you the freedom to move more efficiently, then make that investment. After I graduated from college, I put a down payment on a used Honda Accord that I drove for just over 13 years. Yes…. 13 YEARS! If you have the funds and consistent income to make those monthly payments, make sure your car is a safe, practical model that will help you save money.