As a student-athlete, earning money through Name, Image, and Likeness (NIL) deals is an incredible opportunity. But once that money hits your account, you face an important decision: how should you invest it? Should you focus on short-term goals, like saving for a car or extra expenses during school? Or should you think bigger and aim for long-term wealth building?

Let’s break down the differences between short-term and long-term investing—and how each can fit into your NIL journey.

Short-Term Investing: Preparing for Immediate Goals

Short-term investing focuses on money you’ll need within the next 1–3 years. The goal here isn’t huge growth—it’s safety and accessibility.

Examples of short-term goals:

• Buying a car or upgrading transportation

• Covering tuition or housing costs

• Setting aside money for travel, camps, or training

Best short-term options:

• High-yield savings accounts (HYSA)

• Certificates of Deposit (CDs)

• Money Market accounts

These investments won’t make you rich, but they help your money grow a little while staying safe and available when you need it.

Why it matters for NIL athletes: NIL income can be unpredictable. Keeping some money liquid ensures you’re not forced to sell investments at a loss when an immediate need arises.

Long-Term Investing: Building Wealth for the Future

Long-term investing focuses on goals 5+ years away—like retirement, buying a house, or financial independence after sports. This is where compound growth becomes your best teammate.

Examples of long-term goals:

• Retirement savings (even if it feels far away)

• Building wealth beyond your playing career

• Starting a business after college

Best long-term options:

• Roth IRA (ideal for NIL athletes with earned income)

• Index funds and ETFs

• Stocks with growth potential

These options carry more risk in the short term, but over time they generally deliver much higher returns than savings accounts.

Why it matters for NIL athletes: Your athletic career has a natural time limit—but your financial future doesn’t. Investing early gives your money more years to grow.

Balancing Both Strategies

The smartest play is often a blend of short-term and long-term investing:

1. Cover short-term needs first. Build an emergency fund and keep money for immediate expenses safe.

2. Start investing for the long term. Even small amounts in a Roth IRA or index fund today can grow into significant wealth.

3. Adjust as your NIL earnings grow. Early deals might only cover basic expenses, but bigger deals can help you fund longer-term goals.

Common Mistakes to Avoid

• Putting all your money in risky investments when you’ll need it soon.

• Keeping everything in cash and missing out on growth.

• Forgetting to set aside money for taxes before investing.

Final Takeaway

Short-term investing gives you stability, while long-term investing builds wealth. As an NIL athlete, both strategies have a place in your playbook. By balancing immediate needs with future goals, you can make your NIL money work for you today and for decades to come.

Remember: NIL isn’t just about the moment—it’s about creating a financial foundation that lasts long after your playing days are over.