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Originally Posted by IbelieveinChipKelly
Thoughts on structuring and allocating profits?
I will have a 30 buyin bankroll with 6 months living expenses set aside. In three months, I will - hopefully - be collecting unemployment.
What percentage of winnings should go into the roll and what percentage should go into expenses? I'm thinking of just keeping the roll at 30 buyins until UE kicks in. If I dip below 30, I add on from winnings.
Thoughts?
In the end it doesn't matter at all. Money is money, and you can spend the money on whatever you want. It will all sit in your bank account and collect interest until it's gone.
If you're trying to do some mental masturbation as really that's a lot of what accounting is* then a good idea is likely to pay for your living expenses first from your poker winnings that month, then add 40% to it and then keep they rest in your poker bank roll. This will keep your life roll always at minimum of 6 months of expenses, but it will help you to push that number even higher.
After 3 months** you will have 7.2 months of living expenses and your bank roll will be whatever it was + a bunch of extra money. Also, if you don't plan to move up in stakes you can put a higher % of your winnings into your life roll as you don't need to grow your poker roll as fast.
But really in the end, it's just about knowing your limits, and understanding how much money you need. If you know that you need $1,500 a month to live, and you need 30 * 500 buy ins for 1/3 then you should have $24,000 to your name at all times. Any time you are less than that, it's a problem, and if it's more than that it's a good thing. And as you win, that $24,000 goes up. The way that you split it up doesn't really matter.
*In before I get railed by accountants. I am studying too be one too, don't hate! Depreciation expense isn't a real thing.
**Just don't run bad bro!