nil finance
Saving vs. spending: the 50/30/20 rule
7 min · beginner
The classic budget rule, tuned for NIL
Once you've handled taxes (previous module), what's left over? Split it with the 50/30/20 rule:
- 50% Needs — things you'd buy anyway: phone plan, gym, training
- 30% Wants — guilt-free: clothes, games, food with friends
- 20% Save / invest — long-term
For most high school athletes, "needs" are minimal (mom & dad still cover housing and food). So a better split might be:
- 30% lifestyle — what you want now
- 70% save / invest — compounding for college or beyond
Why invest instead of spend?
$5,000 invested at age 16 in a low-cost index fund (~7% average annual return) = $76,000 by age 50. The same $5,000 spent on clothes is $0 by age 18.
Your action item
Each time NIL money lands, immediately move the save/invest bucket to a separate account before you see the balance in your main account. What you don't see, you won't spend.