A Practical Step-by-Step Guide to Winning With NIL and Beyond
Step 1: Clarify Your Goals
[ ] Write down your top 3 financial goals for the year
[ ] Identify who or what you are financially responsible for (yourself, parents, rent, etc.)
[ ] Decide how much you want to save vs. how much you want to spend
Step 2: Know Your Income Sources
[ ] List all sources of income:
[ ] Scholarship (room, board, tuition, etc.)
[ ] NIL deals (sponsorships, social media, camps, events)
[ ] Revenue-sharing from your school (starting July 1, 2025)
[ ] Estimate total income expected this year
Step 3: Create a Simple Budget Using the 60/25/10/5 Rule
[ ] 60% for Essentials – rent, groceries, phone, car, insurance
[ ] 25% for Future – emergency fund, Roth IRA, Solo 401(k)
[ ] 10% for Lifestyle – clothes, eating out, entertainment
[ ] 5% for Giving – family, charity, church
[ ] Use separate accounts or apps to keep these buckets organized
Step 4: Open the Right Financial Accounts
[ ] Open a student checking account for daily expenses
[ ] Open a high-yield savings account for emergency funds
[ ] Open a Roth IRA if you have earned income from NIL
[ ] Open a business checking account if running your NIL through an LLC
[ ] Open a brokerage account for extra investing beyond your Roth
[ ] Open a separate account for giving to family or charitable causes
Step 5: Understand and Plan for Taxes
[ ] Track every NIL deal and how much you’re paid
[ ] Save receipts for business expenses (travel, gear, software, etc.)
[ ] Make quarterly estimated tax payments if you expect to owe more than $1,000
[ ] Hire a CPA who understands NIL and multi-state income
[ ] Consider forming an LLC if you’re earning $30,000 or more
[ ] Explore S-Corp election if you’re earning $75,000 or more annually
Step 6: Protect Yourself With Insurance
[ ] Make sure you have health insurance
[ ] Get renters insurance if you live off-campus
[ ] Get car insurance if you own or lease a vehicle
[ ] Get liability insurance if you host camps or do public appearances
[ ] Consider disability insurance if you’re on track to go pro
Step 7: Start Building Credit Early and Responsibly
[ ] Apply for a student credit card with no annual fee
[ ] Put one regular expense on it (like Netflix or Spotify)
[ ] Set up auto-pay to pay off the balance in full each month
[ ] Keep credit utilization under 10% of the card’s limit
[ ] Check your credit report once a year for accuracy
Step 8: Begin Investing for the Long-Term
[ ] Contribute monthly to a Roth IRA using NIL income
[ ] Invest in low-cost index funds or ETFs
[ ] Avoid speculative investments, “hot tips,” or cryptocurrency hype
[ ] Increase investment amounts as your income grows
[ ] If using a Solo 401(k), make both employee and employer contributions
Step 9: Set Healthy Boundaries on Giving
[ ] Decide on a monthly or yearly giving cap for family and causes
[ ] Use a separate account just for giving so you don’t overspend
[ ] Have a script ready for saying “no” respectfully
[ ] Offer help through advice or resources, not just cash
[ ] Avoid co-signing loans or leasing cars for friends or family
Step 10: Build Your Financial Support Team
[ ] Find a CPA who specializes in NIL and self-employment taxes
[ ] Work with a fiduciary financial advisor who puts your interests first
[ ] Hire or consult with a certified NIL agent or attorney
[ ] Make sure someone reviews any NIL contract before you sign
Step 11: Follow a Seasonal Financial Calendar
[ ] January – Set financial goals, organize documents, review last year’s income
[ ] April – File taxes and make Q1 estimated tax payments
[ ] June – Make Q2 estimated tax payments, review mid-year spending
[ ] September – Make Q3 tax payments, renegotiate deals if needed
[ ] December – Max out retirement contributions, complete charitable gifts, meet with your financial team
Step 12: Reevaluate and Adjust Annually
[ ] Conduct a full financial review at the end of each year
[ ] Update your goals, budget, and savings targets
[ ] Check if new NIL rules, school policies, or tax laws affect your plan
[ ] Meet with your CPA and advisor to create a new game plan for the next season
Final Wrap-Up: Long-Term Habits That Win
[ ] Emergency savings account is fully funded
[ ] Roth IRA or Solo 401(k) contributions are automated
[ ] Budget categories are clear and accounts are organized
[ ] Tax strategy is in place and monitored
[ ] Giving is consistent but controlled
[ ] You have a team of trusted professionals supporting your journey