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You and I know all too well about the dangers of gambling – it can drain bank accounts, lose homes, and wreck lives. However, responsible gambling does get some things right about money management and poker has a specific principle that you would do well to follow.
Now, you’re probably doing a double-take – “gambling, teaching me about money management?” – but hear me out.
By using poker bankroll management you safeguard today, plan for tomorrow, and lead a happier life – all of which you can do without placing a single bet.
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What are the principles of poker bankroll management?
Bankroll management might be a term that’s alien to you, but it’s a language that anyone who’s savvy with their finances will understand. Put simply, bankroll management is a poker term that describes the principle of having a designated pot of money that you use only for playing poker.
The benefits of bankroll management are simple to understand. Firstly, by keeping your poker funds away from your day-to-day living cash, you’re able to make sure you don’t spend money that should be spent elsewhere. Secondly, using bankroll management makes it easier to see how successful you are at playing poker – you can see the pot of money grow.
To really get your bankroll management right, I recommend that you keep your poker funds in a completely separate account – never bringing the money into contact with your personal finances. This is a principle I recommend for all your poker playing, whether it’s at an online casino, in a home game, or at a land casino like the Bellagio.
Apply bankroll management to your day-to-day emergencies
The first area of your day-to-day living that you should apply poker bankroll management to is your emergencies – you might call it your rainy-day funds. You can do this by setting up an account with a ready supply of cash to help you in times of need.
The reason for applying poker bankroll management to your day-to-day emergencies is pretty straightforward – you simply can’t predict when your car will break, the handle will slip on your front door, or you need to pay for surgery for your pet
By applying poker bankroll management to planning for day-to-day emergencies, you can be sure that your life won’t stop when disaster strikes.
Apply bankroll management to your day-to-day future plans
While thinking about the here-and-now is one of the key parts of your life that you should apply poker bankroll management to, you must also have an eye on tomorrow too. What do I mean? That you should create a pot for your future plans.
There are so many things that you might have in mind for the future – such as paying for your kids university tuition fees (given they’ve increased eight-fold in less than 20 years, there’s no telling how high they could be by the time your kids are ready to go to uni); making renovations to your house; buying a second home; your retirement.
By using the principles of poker bankroll management for your long-term plans, you can feel secure in the knowledge that your kid’s future is safe and that your goals can be achieved.
Apply bankroll management to your day-to-day luxury items
What is life without treating yourself? I’ll tell you what – it’s a long, dull, and painful march into the grave, one that will leave you with few fond memories as your last breath slips from your throat on your death bed. It’s grim reading, but you and I both know it’s true. What’s also true is that bankroll management can help you make sure you have the luxury items you deserve.
While luxuries should be last on your money management list – once the essentials, disasters, and future are all accounted for – you should still make a place for them in a separate account.
Of course, one benefit is that it makes sure you get the treats you deserve. But another is that it’s actually prudent to plan your life in this way. Why? Because it means you can buy your luxury items without it impacting on your essentials.
Poker might seem like an odd thing to take financial advice from – after all, it is gambling. However, as you’ve seen, by thinking like a professional poker player and using bankroll management (there isn’t a single pro out there who won’t be applying these principles) in your day-to-day living you can lead a safer and happier life – both now and in the future.
So start applying the principles of poker bankroll management to your day-to-day living today and start reaping the benefits!
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