Sunday, June 20, 2010
This blog is more tailored towards my poker buddies, but you may be able to find applications as it applies to your lives elsewhere too. Having a good chunk of money as a 'kid' is an interesting spot to be in. While not many people make a great source of income out of poker, many of the few that do cannot hold on to it long enough to get full satisfaction from it. People will read my blogs on traveling and such, or see my facebook status, and just assume that I blow through my money and am reckless with it at times. This could not be further from the truth, I recognize that poker games are much worse these days, and so less money can be made from them. I have enjoyed all the freedoms working for myself have brought me so I intend to be smart with my money so that I do not have to work for someone else.
That being said, I do enjoy my money and ensure that I use it to have a great time. Even right now, while I am staying at a 5-star resort for this month in Thailand, I have budgeted for my next huge trip over the course of 3 weeks. While it was rather expensive to book flights everywhere, I do not plan to be put up at the most expensive of places. I budgeted and thus we are staying at some hostels as well as some hotels. We did some good research and are trying to keep it in a certain price range while still having a great time. If anyone seeks any financial advice you can post here and I can let you know how I have everything structured as of right now. My investments right now at 24 years old are as follows:
Minor owner of a health chain restaurant: Muscle Maker Grill
Part owner of a rental property in St. Augustine, FL
Maxed out Roth or Traditional IRA for 3 years now
Full contributions to SEP IRA yearly now (self-employed retirement fund, comparable to 401k for a company)
Liquid cash: 40% in stock market, brother who is a CFA helps with figuring out my long term and short term goals to help allocate the money, 30% for online bankroll for poker, 30% in bank accounts to cover anything that comes up, have a good time, and also for when I purchase a house as a partial down payment or decide to start a business.
There is a lot I am forgetting and many more options. For poker players, a bunch go broke because they go out and blow it all, not realizing they are only getting temporary satisfaction, and making it so they will not have secure futures. Countless others venture into the business world spotting people too much of their capital without truly realizing the scope of their business and its downsides. Hope this helps at least one person, I know for a few years I was pretty clueless what to do with my money, and had it sitting dormant in bank accounts.