Part One and Part Two of A Guide to Bankroll Management were all about the basics and addressing “taking shots” and moving up in stakes. We’ll discuss BRM even further and this time we’ll be talking about making the right and intelligent decisions when it comes to actually taking money out of your bankroll or cashing out!
Everyone who plays poker and has a bankroll will want to make withdrawals from their winnings. Once you’ve figured out ways to win and gathered experience, you’ll want to keep building that bankroll but also from time to time, withdraw some amount of money. This applies for recreational or casual players as well.
We believe that it is very important to treat yourself from time to time with profits you make from this wonderful game. If you’re not spending money for yourself and for the people you care about then what’s the point, right? Reward yourself for all the hard work and dedication you’ve been putting into the game. Get gifts for those who have to tolerate you locking up inside a room and grinding all night long.
There are a lot of players who prefer playing MTT’s which means that many of them go through periods where they don’t win anything or have a run where they end up winnings back all the lost money or even increase their bankrolls. This happens to a lot of people and it can be hard to let yourself dive into your bankroll and take out from your winnings.
There are many ways around which you can base your cash out strategy. One of our favourites was made a long time ago by a player called “Jennifear”. A long time ago Jennifear posted an article about bankroll management which became very popular and most of it still applies pretty well after all this time.
Jennifear suggests that you should reward yourself based on your volume — that is how much you play — instead of your results, mainly because we can exert 100 percent control over the amount we play but cannot enjoy so much control when it comes to our results. For example, if you play tournaments, by withdrawing a percentage of your tournament buy-in every time you play one, you not only have a steady income that you can control, but your regular withdrawals should keep you at a buy-in level at which you are profitable.
Let us explain this using a simple example. Imagine that you play ₹8 buy-in tournaments with 180 players, Jennifear suggests that you should remove/withdraw 8% of the buy-in from your bankroll every time you play one of those tournaments. This turns out to be ₹0.64. So, if you’re playing 50 of such tournaments, you should withdraw ₹32 regardless of what happens in the tournament. It doesn’t matter whether you cash in or bust before ITM.
Jennifear also suggests you withdraw all bonuses instantly so that the money you are playing with is the money you’ve earned playing poker only. Another interesting thing Jennifear says is that if you want to take a shot at higher stakes, it should be done with no more than one-fourth of the money you have cashed out.
For example, if you want to play a ₹100 buy-in tournament, then you should save up ₹400 worth of cashouts, which means that you should withdraw ₹300 and then take a shot at the ₹100 buy-in event! Should you then win, withdraw at least 75 percent of the winnings immediately, otherwise you will be using shot-taking to pad your bankroll when the system is designed to keep you at a level that is profitable to you.
We’ll show you a table of Jennifear’s cashout recommendations. Understand this, these figures are from a few years back and although they haven’t changed too much, we’d recommend you to withdraw less as win rates tend to be lower in today’s game.
|Head’s Up SNG||2% of your buy-in|
|Single Table Tournaments||3% of your buy-in|
|18-Man SNG||4% of your buy-in|
|45- Man SNG||5% of your buy-in|
|180-Man SNG/MTT||8% of your buy-in|
It’s important to have good strategies in place at the poker tables which give you a better chance to win, but it is also important to have proper strategies in place about what to do with your winnings. Creating a balanced cashing out plan is definitely something which we would recommend and it would also lead you to enjoy the game more!
Bankroll management is very important to understand at an early stage in your poker career. It’ll help you in making better decisions and keep your losses at a minimum.