Hi folks,

Okay, here's a bit of a question I've been mulling over for the past few weeks. When doing my weekly cash-out, which should I put more emphasis on: building my bankroll, or building my checking account? I think there's pros and cons for both.

If I focus on building my bankroll, I create a larger comfort zone, and speed my progression to higher levels; the sooner I can comfortably move up, in theory, the faster my winrate should rise, and the whole thing should snowball wonderfully. In theory.

The down side of focusing on the bankroll; if I keep the ol' checking account too tight, and have a bad week at poker, I'd likely have to cash out from the bankroll to below where I started the week. Granted, I'd have a larger cushion, so I could afford to, but I really don't like the psychological aspect of doing that.

Okay, so the obvious downside in cashing out the majority of my winnings is that my progression to higher games would go more slowly. I have more than enough of a roll to play my current level (3-6), so I feel I have a nice cushion...but if I focus primarily on cashing out most of my winnings and only leaving a small fraction in my bankroll, it'll be quite a while before I can move up. A positive aspect of growing the bankroll more slowly is that I don't "get ahead of myself," moving to a higher limit before I'm truly ready, skill-wise. Another is that it would give me a good cushion in my checking account, so if I have a bad week, it's really not that big of a deal.

Which brings me to my current situation: I'm up about $1350 for this week; My checking account is already bolstered enough to cover the month's bills, with about 500 or 600 to spare. My monthly living expenses are only about $1000 (I'm 21 and unattatched) So, what would you guys recommend? I'm thinking either (a) bankroll 500 and cash out 850, or (b) bankroll 1000 and cash 350. Obviously, either way, I'm putting a good chunk into my bankroll. And as far as moving up: I am going to wait till I have a solid bankroll (shooting for 400 BB's), but I do feel I can make the jump skill-wise. I've been beating the 3-6 games solidly for about a month now.

Okay, that wound up being a pretty long, often incoherent ramble...if anyone made it all the way through, feel free to weigh in!

-TW

Well, you could go two directions with this - and unfortunately, this really isn't going to answer your question.

1. Build you bankroll - set a certain amount each week to keep in your bankroll. If you don't have enough to cover this with the week's winnings, you withdraw nothing.

2. Build your savings - set a certain amount to withdraw each week into your account. If you don't have enough to cover this with the week's winnings, you don't build your bankroll at all.

So for instance, you say you need $1000/month to cover expenses. If you decide to take out $400/wk - you will be covering your expenses plus some extra (to keep you in good standing during lean times).

In my opinion, for someone who is making the most of his money from poker, scenario 2 is more realistic. For someone who has poker as a supplemental income (and therefore isn't required in order to make ends meet), then scenario 1 is also an option.

However, I definitely would set a goal number for each week/month to withdraw for your account (either for your bankroll or your savings). By having a variable amount you could be setting yourself up in a bad way for the future. By having consistency - variance will have a harder time breaking you.

I would also reexamine your amounts on a regular basis - say once a month when you start, and later maybe once a quarter (especially when you think you are ready to move up in limits).

Hope that helps muddy the water some.

/d

Stars,

I think you make a good point as far as setting up a fixed amount, rather than a variable one, whether I opt to focus on savings or bankroll. I think I'm gonna go with a fixed $500 cash-out; this should more than cover my expenses, while also slowly creating a nice cushion in my checking account; at the same time, it means that if I have an abnormally good week (like these past two), I'm rewarded with a nice boost to the bankroll.

Good stuff,
-TW

Okay - so since you received that so well, here's some more "things" you "should" do:

1. Set aside enough of a savings account to have several months covered - preferably 6 months, but 3 is fine too. This way, if you go on a prolonged bad streak - you can handle it well within stride.

2. Set aside goals beyond poker. You're 21 and have monthly expenses of $1k. I'm 26 and have a wife and 2 kids, a house and 2 cars. My monthly expenses are around $2.5k (conservative). Find out what things are going to be important in the coming years and set to meet them. If this means buying a house - do it - set aside 20% and buy a house. If this means buying a car - do it - set aside the money and purchase it outright. If you want a wife, do it - set aside the money and purchase one... I mean a ring... yeah...

3. Set aside some money for the future. Set up an IRA and sock away what you can. At 21, every dollar you put in now could easily be worth $25 (assuming an annulized rate of ~7%).

/d

No thank you, sir! I set up with the IRA a couple years ago, and I haven't heard a damned thing about 7% annualized interest. They did blow up two of my cars and kidnapped by cousin's barber, though...

On a more serious note, though, accruing a few months' worth of living expenses is definitely something I have to do. For the time being, my plan of cashing 500 a week should probably be adjusted upwards, where possible, until I have, as you said, at least 3 months worth saved up.

As far as future plans, I will be looking to upgrade to a house, or at least a row-home, somewhere down the line, but first there's a couple of things I want to cover, money-wise. Once I have a good safety-net set up in my checking account, I'm gonna be looking into paying off the remainder of my car loan, for example.

I also want to be a writer somewhere down the line, but sadly, I haven't been putting much work into that, despite my sudden abundance of free time.

-TW

I think you should delve in the writing thing sooner than later. Ive witnessed your poker playing abilities and read alot of your posts and believe me, you are a better writer than poker player!




Anyone notice Tighty's new monikor?

How about doing something like what TheUnknownPlayer does?

He pays himself a set amount (I think his is $1000/wk, but he rocks so he can do that)

Then he pays himself a quarterly bonus if he makes XX amount during the quarter. The bonus will give you incentive to get your hours in and not sit around telling lies.

Ice,

If you were more aware of the IMPORTANT parts of this forum (i.e. "anything goes"), you'd know that I've already made a public acceptance speech concerning my rockin new title.

I think I could get away with paying myself $1000/week. Seriously, I could! No, I mean it! I grant you, I wouldn't actually be MAKING that much, so my bankroll would be gone in about 3 weeks...but during those 3 weeks, hell, I'd make it $1001 just so I can brag about how I'm better than TUP.

The bonus thing is a good idea, though. I'll give that some thought.

EDIT: I also think you should reveal TUP's identity to me. Come on, it's not like I'd constantly say things like "Hah hah, I know who he is!" to everybody else, and then at some point down the line, ya know, when the money ain't coming in, start up a devious scheme to sell his identity to anyone willing to pay me 50 bucks, while at the same time revealing a false identity to them and then demanding 200 bucks from both you and TUP for the "protection" of his identity, which I would then ACTUALLY sell to some social-life-deprived poker addict in a small back alley of Brooklyn, under the assurance that if he let's anyone know I told him, I'll send wolverine, with whom I'm a close personal friend, after him. And it's not like I'd then use the money I made to buy more cigarettes then any man should ever be allowed to possess...so...how bout it?


-TW

i know too which makes me more important than you.

I would say you got with TUP system while just scaling it down to fit your current game and winnings. It should be something that you are confident that you can consistently best but high enough that it pays for your expenses and a little extra cash for booze and women. It depends if you are like monk (cheap women and expensive booze) or kenny (expensive women and cheap booze) to determine how much you need.

(I'm going to send Tighty on a snipe hunt...)

BTW - Tighty - TUP has actually revealed who he is in at least one of his posts. If you look hard enough - and do a little work (which I know you won't...) you could know like the best of us...

Hmmmmm...researching...

I GOT IT!...shit, I lost it.

-TW