083 - Building a Bankroll

How do you build a bankroll as a poker player? Should bankroll even matter to you? And if it does, how do you manage it to grow and avoid going bust? Seasoned live player and coach Doug Hull is on the podcast this week to answer all your questions on bankroll management.

Do you currently maintain a separate poker bankroll? Why or why not?
Red Chip Poker

Comments

  • DabbyDabby Red Chipper Posts: 84 ✭✭
    As I finish up listening to this, I do have a question. I'll just use the amounts that he talks about in the podcast.

    Say I want to start playing poker a little more seriously (still working full time) and building a separate bankroll for poker. And say I'm okay with losing $500, just like in the podcast. Then I begin to win more and more. In the podcasts, Doug says not to take any money out of this envelope for any kind of personal purchases yet. At what point should I maybe take some money out for purchases? I plan to stay at cash 1/3 (the cheapest game at my local casino), and maybe some cheap tournaments, for a longer period of time. I'm still in the early stages of studying and really learning the game. So these stakes are the best way for me to learn. I'd like to have an idea of where I should be aiming for. Because for now, I just want poker to be a profitable hobby that allows me to do/buy things that I want. However, I would like to have good bankroll management to the point where I don't have to worry about replenishing the envelope after some variance hits me.

    So to simplify: Given the info above. If $500 is my golden buy-in, at what point is it okay to pull some money out of the poker bankroll for a personal "luxury" purchase? $5000? $2500? $10,000? Thanks in advance!
  • Dean MDean M Red Chipper Posts: 183 ✭✭✭
    I'm not sure the 'right' thing to do, but can tell you what I do.

    I have a FT job, an internet business (job #2) and consider poker job #3, PT income of about $25-30k a year.

    I typically take $1500-1600 to the casino (3 buy-ins at my 2/5 game) and keep 3-4k available besides that. As I build a balance over and above that I spend it on either home improvements or invest in my rental property improvements.

    I try to stay away from personal 'luxury' purchases except for a really good meal with my wife from time to time :)
  • DabbyDabby Red Chipper Posts: 84 ✭✭
    Dean M wrote: »
    I typically take $1500-1600 to the casino (3 buy-ins at my 2/5 game) and keep 3-4k available besides that. As I build a balance over and above that I spend it on either home improvements or invest in my rental property improvements.

    So for you, as a winning player with a FT job, you're okay with having around 3 buy-ins in your "envelope"? If that's the buy in for a 2-5, what do you recommend as a buy-in for my local 1/3 game?
    Dean M wrote: »
    I try to stay away from personal 'luxury' purchases except for a really good meal with my wife from time to time :)

    What I meant was, spending the money on something non-poker :P. Being the tech nerd that I am, I enjoy buying things related to that. (I.E. - PC upgrades, home automation stuff, etc.) Though, I do have general home improvement stuff that would need done as well.



  • kageykagey Red Chipper, KINGOFTAGS Posts: 2,241 ✭✭✭✭✭
    It's really a comfort factor, @Daniel B
    for most players, playing on their last dime causes them not to play optimally
    nor does playing knowing you've only got 1 buy-in left....

    @Dean M obviously knows how to manage money cuz he's already an entrepreneur

    that should really be the crux of the podcast... that if you're taking it seriously, you should treat it more like a side business that you'd prefer not needing to constantly prop up with your regular job. But say you're making Trump-money, then it doesn't matter if your envelop goes empty, you can easily refill it.

    As far as expenses - I'd want to pay for RCP & book & webinars from my "poker" account because I'd see that as part of my "business expenses"
    Going out for a nice dinner shouldn't really be part of that... BUT I think some guys feel that they should get "paid" for their efforts, so they pay themselves a "wage" from their poker account... after all, it's no fun to work for free.

    On the forum homepage - you should see a "Bankroll" tag that has a lot of older and good posts on managing your bankroll. Reviewing them will probably answer all your questions.

    Hope this helps.
  • Dean MDean M Red Chipper Posts: 183 ✭✭✭
    Daniel B wrote: »
    So for you, as a winning player with a FT job, you're okay with having around 3 buy-ins in your "envelope"? If that's the buy in for a 2-5, what do you recommend as a buy-in for my local 1/3 game?

    I buy in full - so 3, $500 buy-in's is my personal stop loss so to speak. For your own game, I'd just go with your personal comfort level on a single session loss.
    Daniel B wrote: »
    What I meant was, spending the money on something non-poker :P. Being the tech nerd that I am, I enjoy buying things related to that. (I.E. - PC upgrades, home automation stuff, etc.) Though, I do have general home improvement stuff that would need done as well.

    I wasn't trying to be judgmental on buying luxury items - to each his own - it's just for me, I wasted so much money in my 30's on 'toys' it makes me regret not having that money invested now.

  • NYCRyNYCRy Red Chipper Posts: 336 ✭✭✭
    I think bankroll management strategy is for professional poker players. Anyone with a job/cash flow shouldn't even worry about it. Spend your money however you like
  • moishetreatsmoishetreats Red Chipper Posts: 1,819 ✭✭✭✭
    Ryan A wrote: »
    I think bankroll management strategy is for professional poker players. Anyone with a job/cash flow shouldn't even worry about it. Spend your money however you like

    I agree. I would add: but DEFINITELY keep honest records about how much you're winning and losing!

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