Money Management in Texas Holdem
Money management is one of the most important skills for playing Texas Hold’em. It is what allows you to stay at a casino, land-based or online, for longer and not lose everything right away.
Good money management in Texas Holdem will reduce the effect that bad luck has on your time at the table. Without it, a terrible run of cards will have you flying through your budget and force you to leave the table sooner than what you would have wanted.
Money management is important.
Every player will experience bad luck in Texas Holdem, it doesn’t matter how much good you are at playing. An even better player knows this and will plan their bankroll to take the hits that luck can throw at it. This doesn’t mean playing at incredibly low stakes either.
You want to be able to win something that will feel good and allow you to move up the limits. Money management is all about finding the balance and maximising the amount of money you can play for while staying safe. To do this, we are going to need the rule to follow.
The basic money management rule.
If you are a casual gambler or are just playing poker around one table with friends on a very comfortable budget, you don’t need this rule. The following rule only applies to gamblers who want to try to build a bigger bankroll and move up the limits. This rule will help you win safely as you go play in a casino.
Money management rule:
- In cash games, you should have a minimum amount of buy-ins for that table equal to 20 buy-ins.
- In sit and go games, you should have a minimum of 40 buy-ins in your bankroll for that table.
So if you are at a cash game of Texas Holdem and the minimum buy-in is R100, you need 20 of them in your bankroll to play here safely. So, R100 x 20 = R2000 for that particular table. The exact same system applies to sit and go games except you need an amount equal to 40 times the buy-in in your bankroll.
Having a good bankroll and planning it according to this rule will allow you to come back from bad luck and bad plays. A losing streak is not a rarity in gambling, so your strategy at the table should include this factor. Having 20 for 40 buy-ins gives you a big enough buffer to break the streak.
Moving up and down the limits.
At a casino, you are going to win and lose money. As this happens, you should shift up and down the limits to match the amount of buy-in you have in your bankroll.
Let’s start at the buy-in of R100 again. If we enter a casino with R2500, we have enough for 25 buy-ins. With our rule, this table is perfect for us. If we get lucky and play well, moving our bankroll up to R4000, we can now move to a table with an R200 buy-in because that will set our minimum buy-in amount to 20.
If a losing streak happened instead, you can move down a table with a buy-in that matches our rule. This will keep our bankroll safe until we can play at higher stakes again. If our buy-ins are below 20 for that table, move down and work our way back up.
These examples were all made for cash games. Adjust the numbers to 40 buy-ins if you are playing sit and go games.
Plan ahead with your budget.
To really gamble smartly, we can plan even further back than money management. Creating a budget and practising safe gambling is the only way to enjoy gambling properly. To learn more click on the guide below.