Everyone loves to win big at the poker table, but once you’ve got that huge jackpot, it’s a little daunting to try and figure out what to do with it. Poker wins tend not to be small amounts, so if you’re smart enough not to squander it all needlessly, we give you a few tips to manage the large funds that go into being a high-stakes poker player.
Responsible thinking
If you’re earning, say, fifty thousand a year, supporting your fledgling poker career with a day job and all of a sudden you pull in half a million in a big tournament, it’s going to change your life. Earning, in a single tournament, more than you would normally do over the course of a decade can tempt you into spending. Listen to the voices of experience – do not do that. The interest, and the potential investment or savings value of that amount of money could support you for years, or even enable you to go full-time.
Of course, buy yourself whatever you like, but think responsibly. If you’re paying off your mortgage, then this is a constructive use of your money. If, however, you never go near the sea but feel the need to suddenly own a luxury yacht, take a step back and ask yourself if you’re really purchasing this for you, or to justify your status as “newly minted” to others. Life isn’t the same as Pimp My Ride, so think like an adult, even though you’re tempted to spend like an excited kid again.
Saving
The best thing to do when it comes to large sums is to ensure they’re sitting in a high-interest savings account if you know you’re unlikely to dip into them immediately. Ensure you have occasional access if you need an emergency replenishment of your current account’s total or to avoid going into overdrafts or relying on credit, but also consider the interest. Even small percentages on six-figure-plus sums can equate to a small income in themselves, and of course if you leave that interest to build up in the account, you can head off to a small island by the time you retire – namely, your small island.
Investing
It’s important to think about what else you could be doing with that money. Real estate, bonds, the stock market and hedge funds are all viable ways of massively boosting the numbers on your bank statement, but bear in mind that, unlike a savings account, these come with an element of risk, so if you’re unsure of what you’re doing, hire a professional. It’s better to pay the salary of an accountant, stockbroker, or financial adviser and make millions on your initial investment, than to simply waste it all trying to accomplish things yourself.
Big wins are fun, just stay smart and think with your head and not your wallet. Allowing a huge bank balance to mature and expand is far more satisfying than immediate luxuries, so use your winnings well and you’ll benefit more than you can possibly imagine.