4 Things Poker Teaches You About Money Management

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Poker is not just a hugely popular game of chance; skill plays a key role in determining whether you fail or succeed at the table. Furthermore a lot of the abilities that you gain as a poker player can be transferred to other areas of your life.

As poker involves managing risks and assessing unknown factors consistently over time, you might find that it can help you with your finances in the real world.

Here are just a few examples of where poker theory is applicable to everyday money management.

1. Budgeting

When playing poker, it is important to make sure that you never put more at risk than you can afford to lose.

The same is true outside of this sphere, since living within your means and getting a handle on effective budgeting is incredibly significant from a financial perspective.

Just as bankroll management is vital for poker players, you need to make sure that your monthly outgoings to not exceed your available income.

Learning to be realistic about your finances will help you avoid falling into debt and in turn could boost your savings.

2. Risk Management

Poker, like life itself, involves a degree of risk. You should not try to eliminate it altogether, as this is impossible. Instead the game teaches you that risk can be managed and absorbed, rather than conquered outright.

This is obviously applicable if you are intending to make any financial investments in an attempt to grow your nest egg or make your money work for you, rather than just letting it sit in the bank.

Poker teaches you restraint and patience. You need to know when to bet big, when to hold back and when to duck out and cash your chips.

This goes hand in hand with learning about humility.

No lucky streak goes on forever and no player should assume that they are guaranteed a win simply because they have worked hard and feel they deserve it.

The world of finance can be just as unpredictable, so it pays to take heed of warnings and watch out for signs of a slowdown.

3. Level-Headedness

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It is impossible to become good at poker if you are skittish and inconsistent in your decision making, prone to impulsive behaviour or simply incapable of keeping calm when the chips are down.

This relates just as appropriately to money management, since getting caught up in a flash in the pan fad or failing to remain level headed if things take a turn for the worse can cause you to create disasters of your own making.

Learning to control your unhelpful urges, retain a sense of perspective in a tricky spot and stop allowing the actions of others to influence your own at the poker table will give you the tools you need to succeed in a financial setting as well.

4. Creating Achievable Goals

If you are a casual poker player, you may not have any particular aim when you start out, whether online or at a casino. This is all well and good, but without targets to hit you cannot expect to make much progress.

This is similarly relevant when it comes to money management.

You need achievable goals to motivate you to make changes and strive to better yourself, or else you will simply end up treading water without making any headway.

Keeping your goals realistic in the poker world can mean many things.

If you are new to the game, learning the ropes means accepting that you may make a loss during your first few outings. Investors or anyone hoping to manage their money effectively might adopt a similarly philosophical approach.

Embracing small failures with a view to learning from mistakes and capitalising on this experience over time is an important skill.

Most of all you will learn that although poker is technically a competition between multiple parties, the biggest obstacle to success is often yourself. It does not pay to get obsessed with how well others are doing, whether you are playing a quick hand online or managing your money matters. Sure, some poker players make millions each year, and you may have friends who take home much larger salaries, but success and happiness can only be measured individually.

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