Signing your first NIL deal probably felt like a major win, and it is. But what most athletes don’t realize is that once the money hits your account, you’re more than just a student-athlete. You’re now running a business.
And like any business owner, the way you handle your money today can set the tone for your financial future.
As a financial advisor for NIL athletes, we help people like you handle the unique challenges of NIL money. Whether you’re making a few thousand dollars or have a 6 or 7-figure deal, here’s what every college athlete needs to know to keep more of what they earn and make it last.
1. NIL Money = Self-Employment Income
When you get paid through NIL, you’re considered self-employed. That changes a few things:
-
No taxes are withheld automatically
-
Quarterly estimated taxes may be required
-
You can deduct NIL-related expenses (travel, gear, training, etc.)
You’re responsible for tracking everything and filing taxes accurately. Ignore this, and you could owe penalties or interest, even before graduation.
2. Taxes Aren’t Optional: Save 30–40% of Every NIL Check
You need to treat every NIL payment you get responsibly to avoid
Set aside 30–40% of your earnings in a separate account for taxes. If you don’t need it all, great, you saved more. But if you do, you’ll be glad you planned ahead.
A dedicated savings or high-yield money market account works well to keep your tax money safe until April (and growing slightly).
3. Turn Short-Term NIL Money Into Long-Term Wealth
Your NIL window might only last a few years, but the impact can last a lifetime if you invest wisely.
With the right setup, you could:
-
Open a Roth IRA, Solo 401(k), or SEP IRA
- Save for short-term goals (travel, shopping, etc.)
-
Build an emergency fund so you’re covered when the unexpected happens
-
Start building credit the right way
Small, consistent moves now can lead to financial flexibility later, especially after your athletic career ends.
4. Think Beyond the Deal: Life After NIL
Your NIL income might stop when college ends, but your life won’t. Whether you’re chasing a pro career, planning to coach, start a business, or go to grad school, what you do with your money now matters.
Athletes who stay ahead financially are the ones who treat their NIL money with the same discipline they bring to their sport.
5. Work With a Fiduciary, Not a Salesperson
There’s no shortage of people who want to “help” you with your money, but many are just looking to get paid and take a chunk out of your pocket. Agents, insurance reps, and even some financial advisors earn commissions when they sell you products.
At Kraft Capital, we do things differently:
-
We’re fee-only fiduciaries, meaning we never earn commissions
-
We don’t sell investment products or insurance
-
We only get paid by you and are legally obligated to act in your best interest
Whether you need one meeting to get organized or ongoing advice, we’re here to help you use your NIL opportunity to build something real.
Want to make the most of your NIL income?
Let’s talk!
– Clint Kraft
Founder and Financial Advisor, Kraft Capital