For many student-athletes, NIL income is the first opportunity to earn—and invest—real money. Investing can be one of the most powerful ways to build wealth, but it’s also an area where mistakes are easy to make. Just like on the field or court, one wrong move can set you back.

Here are some of the most common investing mistakes athletes make—and how you can avoid them.

Mistake 1: Jumping Into “Hot” Investments

It’s easy to get caught up in hype—whether it’s cryptocurrency, meme stocks, or the latest “can’t miss” tip from a friend. The problem? High-risk bets often end in disappointment.

How to avoid it: Stick with proven strategies like index funds or diversified ETFs. These options may not sound flashy, but they deliver consistent long-term results.

Mistake 2: Investing Before Building Savings

Many athletes put all their NIL money into investments without first creating a financial cushion. When emergencies pop up, they’re forced to sell investments early—often at a loss.

How to avoid it: Build an emergency fund first. Aim for $500–$1,000 to start, then grow it to cover 3–6 months of expenses.

Mistake 3: Forgetting About Taxes

NIL income usually comes without tax withholding, and investments create additional taxable events. If you ignore taxes, you could face unexpected bills and penalties.

How to avoid it: Always set aside 25–30% of your NIL income for taxes. Work with a tax professional to understand how investment gains are taxed.

Mistake 4: Putting All Your Money in One Place

Whether it’s a single stock, one investment app, or a friend’s business idea, concentrating your money in one place exposes you to major risk.

How to avoid it: Diversify. Spread your investments across different companies, industries, and types of assets (stocks, bonds, funds). That way, one bad investment won’t wipe you out.

Mistake 5: Trying to Time the Market

Many athletes (and even seasoned investors) try to buy low and sell high. The reality? Nobody consistently predicts the market. Mistimed moves often mean missing out on gains.

How to avoid it: Use a strategy called dollar-cost averaging—investing a set amount regularly regardless of market conditions. Over time, it smooths out the ups and downs.

Mistake 6: Ignoring the Long Game

Some athletes only focus on short-term wins. But investing is about building wealth for the future, not chasing quick paydays.

How to avoid it: Think long-term. Even small, consistent investments in your college years can grow into significant wealth by retirement thanks to compound interest.

Mistake 7: Not Getting Professional Guidance

Athletes often rely on friends, teammates, or social media for financial advice. Unfortunately, this can lead to bad decisions and lost money.

How to avoid it: Build your financial “team.” A qualified financial advisor, tax expert, or mentor can help you create a plan that fits your goals and protects you from costly mistakes.

Final Takeaway

Investing can turn your NIL earnings into long-term wealth—but only if you avoid the common pitfalls. Focus on saving first, diversifying, planning for taxes, and staying disciplined with a long-term strategy.

Just like in sports, success in investing comes from fundamentals, consistency, and having the right coaches in your corner.