Professional Poker Player Says “Hit Me”

Hi Scott,

I am 23 years old and play poker full time. I currently earn about $150k a year. The scary thing is, my family have come from nothing and have struggled financially their entire lives. I now have around a $250k net worth (though it fluctuates a lot) and am really unsure what to do with my money. I have zero debt, and have about eight accounts for budgeting as I am very strict on where my money goes. I also have $40k invested into Vanguard index funds. Do you have any advice?

Craig

Hi Craig,

I can help you with your finances, but with your poker playing I’ll have to defer to my good mate Kenny Rogers.

What advice would you give to Craig, Kenny?

“On a warm summer’s evening…”

Kenny -- get to the point -- we’re on a word limit here.

“Oh, sorry! You’ve got to know when to hold’em, know when to fold ’em.”

Thank you, Kenny.

Craig, you’re basically like any small business owner just starting up: you have fluctuating income but fixed living costs, and there’s a chance your business could go bust. So I’d treat your poker-playing like a business: have a set amount of capital you put into the business (and no more), then analyse the returns you’re achieving each financial year -- and only continue if it’s profitable. You should be proud of yourself -- there are very few people in their early twenties worth a quarter of a million dollars, and even less that are smart with their money.

Scott