When receiving your first check for your NIL deal, there are so many positive emotions that you may feel. You may start thinking about all the things you can do with your new money…but you're probably not thinking of what not to do with your money. Here are two NIL pitfalls to avoid.

Don't Spend it All in One Place!

The number one thing to keep in mind is that this money isn't to just throw away and buy useless items you don't need. Of course, depending on how much you receive, you can go buy something nice here and there, but you shouldn't spend the majority of your money right off the bat. If you don't make a savings account, which should also include a retirement plan, then you're off to a bad start with your new money. So the first thing you should do is open a savings account and invest the majority of your NIL money.

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Don't Waste it (and Possibly Ruin Your Life)!

Receiving an NIL deal very much could be your first job or real paycheck. Some people don't know how to react when they get a sizable check, especially for the first time. You don't want to go down a path you would never go down if you didn't have that money. For instance, you shouldn't let a payout  change you by spending all that money partying and going out…especially if you were never a partier in the first place. Professional athletes have lost every penny in their contract by going out, partying, drinking, and gambling. If you follow this path, you could not only waste all your money but you also could ruin your life.

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Instead, consider spending a moderate amount of your NIL money on things that matter like dinner for your teammates or birthday gifts for your loved ones. That way, you don't only avoid making bad decisions–you can also make someone's day.

The bottom line: don't change your personality and spending habits just because you have some extra money now. At this age, you have a whole life to look forward to and you don't want to make a bad decision that will affect you forever in a negative way.  Money is a good thing to have–don't let it make your life harder.

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* Originally published on September 2, 2022, by Chris Russo