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Old 11-16-2005, 06:01 AM
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Default Re: How do you pay yourself?

If I'm correct to interpret your question as "how do I determine how much to pay myself from my poker winnings?", then the answer is fairly simple. However, keep in mind that I think I may be conservative re: this subject.

Basically, I keep ~1000 big bets for a bankroll. This is money that I can never really spend or pay myself -- it's the "just in case things go to hell" cash that keeps me staked. Additionally, I keep three months worth of budgeted expenses on hand -- this number also remains constant.

Next, at the end of each month, I look at my PT results for that month, and set aside 25% for taxes and 5% for my IRA (until the annual maximum is reached, of course).

Then, depending on how quickly I want to move to the next limit, I take the remaining cash and either save it for a trip/item/x-mas etc, or add it to my bankroll. I also take some (although not as much as I should...) and save in the stock market.

Obviously, it doesn't work out that perfectly every month, but I do attempt to keep my cash flow statement ultra-positive.
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