Sloe Times
A journal of my adventures in learning and growing personally and professionallyMonday, December 27, 2004
Poker: 9, 8, 7, 6, & 5 Days until the New Year - Money Management
On top of being away for the holidays I also got sick. I think I caught it from the boy but in general since there's really nothing I want to do other than drown my fevered body in cold water and scoop out my eyeballs to ease the sinus pressure I figured I'd at least touch on the next topic I wanted to ponder over and that is Money Management.
Since the number two reason for me playing is to make money I should identify what my plans for all the cash I'm going to be raking in is. This last year I started off poorly and didn't expect to make any money at all. Once I did hit the black, I spent it on things that may not have been worth while (in relation to wiping out my bank roll). Since I'm challenging myself to turn $50 into $2k using the OIC formula I need to decide what to do with the 2k each time I reach it (I'm making the bold assumption that not only will I do this, but I'll do it multiple times this year).
I'm seriously wanting to look into generating some sort of passive income through investments so I think my basic strategy will be to take 1/3 (650) and put it towards some sort of rainy day savings, another 1/3 (650) to go towards an investment fund, and the final 1/3 (650) to go to some worthwhile (undecided) cause. That leaves 50 to start the challenge over with.
On the other hand, playing $0.50/$1 sucks. The players are weak and the variance is greater than I remember 2/4 or 3/6 being. I've tightened up a lot since I last played which is probably saving me a lot of bets that would have been easily gambled away. On the other hand, I play single table and now spend a lot of time putting on a folding clinic which is boring. Perhaps for my birthday I can convince the wife to get me a 19" LCD to replace my 15". I'm thinking that If I could be at 1600x1200 instead of 1024x768 multitabling becomes a viable possibility. Anyway, back to the topic at hand.
The pressure to pull excess winnings out of my bank roll to cover other expenses is pretty great. For example, this last year involved a vacation and some medical expenses. I probably didn't need to wipe myself out to cover those things, but I did and I suspect the temptation will arise again this year. Hence, the plan. I think that by setting down in writing what I'm going to do with the money I pull in from this hobby it will at least allow me to mentally segregate it from other things I could/would spend money on. To that end I'm looking to get involved with an investment club locally. Since I know little to nothing about investing for short term returns this should be an interesting challenge as well.
Something else for me to keep in mind is that if I do achieve my goal of making the 2k challenge multiple times, I'm going to have to seriously look into the tax ramifications for this income. There could be worse problems to have, but the last thing I need to do is be on the bad side of the IRS.
Since the number two reason for me playing is to make money I should identify what my plans for all the cash I'm going to be raking in is. This last year I started off poorly and didn't expect to make any money at all. Once I did hit the black, I spent it on things that may not have been worth while (in relation to wiping out my bank roll). Since I'm challenging myself to turn $50 into $2k using the OIC formula I need to decide what to do with the 2k each time I reach it (I'm making the bold assumption that not only will I do this, but I'll do it multiple times this year).
I'm seriously wanting to look into generating some sort of passive income through investments so I think my basic strategy will be to take 1/3 (650) and put it towards some sort of rainy day savings, another 1/3 (650) to go towards an investment fund, and the final 1/3 (650) to go to some worthwhile (undecided) cause. That leaves 50 to start the challenge over with.
On the other hand, playing $0.50/$1 sucks. The players are weak and the variance is greater than I remember 2/4 or 3/6 being. I've tightened up a lot since I last played which is probably saving me a lot of bets that would have been easily gambled away. On the other hand, I play single table and now spend a lot of time putting on a folding clinic which is boring. Perhaps for my birthday I can convince the wife to get me a 19" LCD to replace my 15". I'm thinking that If I could be at 1600x1200 instead of 1024x768 multitabling becomes a viable possibility. Anyway, back to the topic at hand.
The pressure to pull excess winnings out of my bank roll to cover other expenses is pretty great. For example, this last year involved a vacation and some medical expenses. I probably didn't need to wipe myself out to cover those things, but I did and I suspect the temptation will arise again this year. Hence, the plan. I think that by setting down in writing what I'm going to do with the money I pull in from this hobby it will at least allow me to mentally segregate it from other things I could/would spend money on. To that end I'm looking to get involved with an investment club locally. Since I know little to nothing about investing for short term returns this should be an interesting challenge as well.
Something else for me to keep in mind is that if I do achieve my goal of making the 2k challenge multiple times, I'm going to have to seriously look into the tax ramifications for this income. There could be worse problems to have, but the last thing I need to do is be on the bad side of the IRS.
posted by Andres Silva # 12/27/2004 09:49:00 PM 
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