Sole Survivor - Bankroll Management

I’ve been asked by a few readers to write a short piece on bankroll management, so here you go.

My basic principles are to make sure that the bills are paid at the end of the month, some money is set aside for a rainy day and that there is money to spend on enjoying time with family and friends.

After these things are taken care of you have money which has some flexibility to it. You can use it however you like, it’s your money. Put more of it in savings or treat yourself to something you enjoy. If that something is poker, more power to you.

Alternatively some players never contribute any of their work wages to their bankroll. Some players might make very infrequent deposits into their poker funds (whether it be live or online) and carefully grind up their bankroll using careful game selection.
Whatever method you prefer is fine, as long as you are financially safe.

Let’s say you have been playing some small stakes tourneys after your first deposit. Maybe $5-$10 multi-table tournaments (MTTs) and maybe some freerolls to help boost your bankroll. Let’s then say you come across a nice score in an MTT and find yourself with a $1,000 bankroll. How do you proceed from there?

Well, first of all go through the above check list. Are the bills, rainy day money and time with loved ones all safe and sorted out? If these things are secure and you don’t need to dip into your poker fund to cover them then you might wish to increase the stakes. Whatever you do, do not try to rush into the big time. It takes a long time and a lot of discipline to improve your game enough to be able to thrive in a higher buy in game than you are used too.

You can view this for yourself. Watch a turbo sit and go at $30 stakes, then watch a game at $60 and $100. The difference in skill is quite significant.

Anyway, for sit and go tournaments I would personally never want to invest more than two to five percent per tournament. If you have $1,000 then a $50 game is quite a big game and the biggest game I would play with that bankroll.

As for MTTs I would halve this requirement. A $25 game would be at the top of your buy in level. The variance involved increases with the more players involved in the tournament. The best player in the world could play the Sunday Million every Sunday for a year and not make a final table.

These may seem like very conservative numbers, but no matter how good a player you are, it’s very possible to go many, many games without a significant cash. Believe me, I’ve been there and done that.

What about satellites? I love satellites, they are a great way to get into a bigger than usual game at a fraction of the cost. Personally I’d use the same rule I use for MTTs, but keep in mind if you win one, your bankroll doesn’t increase until you cash in the target game. So don’t play them too frequently as they can drain your bankroll quickly if you don’t manage a cash in the game you won into.

Another factor to consider is living expenses. If you satellite into a live event the package often, but not always, includes cash to pay for hotels and travel. If the package doesn’t pay for your expenses then you need to plan for this by either saving up money from your wages or withdrawing from your bankroll to cover the costs.

Satellites are a great way to play at higher stakes and gain vital experience against stronger players at a fraction of the cost. Even if you just make it into the money, you often make a huge return on your original investment of the online satellite. ♠

Science teacher Ian Simpson came fourth in the Irish Open 2012 for €107,500 and, as the last paddypowerpoker.com online qualifier standing in the main event, won the Sole Survivor contest netting himself another €100,000 =- €50,000 in cash, €50,000 in tournament buy ins.