Tips for managing the money you earned on social media

Back in the early 2000s, big companies made money marketing on social media, but the average Joe content creator wasn’t privy to those revenue streams. Then came vlogging, YouTube, and Instagram, and seemingly anyone could amass a huge following and turn those eyeballs into dollars.¹

Nowadays, making money on social media can feel a little like finding cash in your pocket — it’s exciting, a little unexpected, and often challenging to know exactly what to do with it. Whether you’re pulling in a steady stream from affiliate links, brand deals, content subscriptions, or a viral video that earned you a nice creator payout, social income can add up fast.

The tricky part for some creators is that their social media income doesn’t always feel “real. “The temptation is to think of it like Monopoly money — ready-made for impulsive spending and in an unlimited supply. “One of the biggest mistakes I’ve seen creators make with social media income is thinking every big paycheck will keep coming,” says Brandon Capps, Founder and CEO of Velocity Wealth Management in Phoenix, who counts several high-end social media influencers among his clients. “It’s easy to overspend or make long-term commitments you might not be able to afford next month.”

If you’re starting to generate income from your social media activities, it’s never too early to start planning how to manage that money — no matter how small the amount is. Here are some tips that can help.

Pay yourself first

Though your social media pay may be inconsistent, delayed, or come in strange amounts, there are steps you can take to turn that unpredictable income into something that supports your long-term goals. The key is to treat this money as business income and not a bonus. “Pay yourself a set amount each month based on what you can consistently afford, even if your income comes in waves,” Capps says.

The money should be spent on living expenses and upgrades to the equipment you use to create — cameras, lights, and video editing tools — not shopping sprees. The goal is to create stability — even if your actual paychecks are anything but stable.

Get in the habit of saving

No matter how well you do at generating income from your social media posts, remember this money isn’t guaranteed. “The size of your paycheck is determined by how well your videos do, if they don’t go well that month, neither does your bank account,” says Benjamin Winters, DDS, an orthodontist in Plano, Texas, and a client of Capps, who has amassed over 20 million followers on social media as 'The Bentist’.

After you’ve paid yourself a salary, the rest of your income generally should go towards savings. “Set aside money for taxes and savings before anything else. If you can build that habit early, you’ll be way ahead of the curve,” Capps says. He recommends setting aside 20% – 30% of your earnings. This money should be earmarked for emergencies, retirement, and funding any future goals. If you’ve just been scraping by every month to pay your rent or mortgage and cover your debts, prioritize building up an emergency fund that covers at least six months of expenses. “The more consistent you are with saving, the less pressure you’ll feel when a slow month hits — and it will,” Capps says.

Don’t forget about your other business partner, the tax man

Even if you only make a modest amount on social media, that income is still subject to taxes. There’s no withholding taken out of every payment so your full burden will be due come tax season. To stay on top of your taxes and avoid being surprised by a big tax bill, Capps suggests treating taxes as a year-round priority and keeping your business and personal expenses separated. “Track everything — income from all sources, business expenses, and any freebies you get,” he says. “Open a separate account just for taxes and move 25% – 30% of every payment there.” If you file quarterly, be sure to pay on time to avoid penalties. Consider working with a tax professional. They can answer your questions, keep on top of your paperwork, and help you maximize deductions. “Staying organized now will save you a ton of stress and money later,” Capps says.

Plan ahead

Once you’ve established your budget, built up an emergency fund, and paid down any high-interest debt, it’s time to start thinking about investing in your future. That includes what you need to build up your social media business and looking toward protecting and growing your money. Sixty-one percent of people who rate themselves as having high financial wellness also say they are good at setting up long-term financial plans.² Working with a financial professional to map out a path towards your long-term goals can help. “If you’ve been earning consistently for a while, it may be time to think about working with a CPA, forming an LLC or S-Corp, diversifying your income, and protecting what you’ve built,” Capps says. “You’ve got more to lose, and more to work with, so the financial game becomes about protection, tax efficiencies, business growth optimization, and long-term planning.”

The bottom line

Whether you’re a casual content creator or starting to turn your side hustle into something more, making money on social media can be exciting. But whether that thrill is long-lasting or momentary depends on the choices you make about how to handle that income. There’s nothing wrong with enjoying some of it, but it’s better to do so intentionally. “If you treat every check like it’s a jackpot, it won’t last,” Capps says. Set a fun budget and then make sure the rest is going toward savings, taxes, or long-term goals. The real flex isn’t the flashy car — it’s having financial freedom no matter what happens next.