In this short video I discuss a few things to think about when a windfall of money comes your way. Five things to consider when you sell your first script are paying taxes, large expenses, savings & Emergency fund, regular expenses tied to your income, and lifestyle inflation.

TRANSCRIPT:

So today's short video is for those who just sold their first script or perhaps you sold a script for way more money than you ever have before. First of all congratulations! So here are just a few questions and things to consider.

First, do you have to set aside cash to pay taxes from this windfall? Also, do you plan on having any large expenses in the near future? Because if you do, you may want to set aside cash now for that purchase. Also, are you able to save more now that you have more money? What about your emergency fund? Is it adequate to last you anywhere from, in my recommendation, 9 to 18 months without a job? Can you fund it all now or can you put a little bit into it now and fund it as you go? Also, will this affect any regular expenses that are tied to your income such as taxes, financial aid, student loans, or Medicare costs? And finally, revisit your routine spending and be aware of something called Lifestyle Inflation. It's a real thing. You start to spend more money on things of higher value that you were never spending on before because now you have more money. Then you start getting used to that and it's called Lifestyle Inflation. So just be cognizant of it.

Now this isn't everything to consider. These are just a few things. There is plenty more out there. But I do hope you found this helpful. As always, do what's best for you. Everyone is different. Thanks for watching.