The future is uncertain place for professional poker players. Hopefully the proposed 15 month "black-out" was a reality check for some of you. I've compiled a rather long financial survival guide for all full-time players out there. Hopefully it offers some practical advice on saving/making money during these uncertain times. I don't proclaim to be an expert on financial advise, nor is any of this advice very revolutionary - so take this for what it's worth.

* Do not buy a home in the near future
There is absolutely no shame in renting. Keep yourself mobile and flexible. When poker legislation eventually passes the last thing you want to be is stuck in a opt-out state two hours from a brick and mortar casino.

* Invest
Before you invest a dollar of your money you should do a little research to fully understand what you're getting into. You'll need to find a brokerage and come up with an asset allocation that meets your particular needs. A good place to start is:
http://www.bogleheads.org/wiki/Bogle...ent_Philosophy

For most people I would recommend investing in Vanguard ETF index funds. A generic 'vanilla' portfolio that correlates w/ the market usually beats most funds managed by 'experts' in the long run, and the fees are extremely low.

Most investments should be geared 'for the long haul'. Only invest money you don't currently need and plan to keep it there for 5+ years. Selling shares prior to owning them for a year will also mean a higher capital gains tax.

*Banking
Savings accounts offer notoriously low interest rates. Instead of parking the bulk of your funds in there, open a money market account with your bank. These accounts are FDIC insured, work similarly to checking accounts, and usually offer much better interest rates. Don't be afraid to shop around and open an account with a new bank to get a better rate. You may also want to open multiple bank accounts. This insures that if a bank decides to stop doing business with you (due to your online poker transactions) that you have another bank you can transfer your funds to immediately.

*Credit Cards
Look for a card that offer percentage kick-backs on practical things such a gasoline or food. Business cards usually have better rewards than consumer based cards. An individual can get a business card, so I would recommend that if you are able to get approved. In most cases it is not worth it to pay an annual fee for your credit card, there are plenty of free options with good rewards programs. A google search will provide many websites that compile various credit card deals.

Pay off your credit card every month. Never carry a balance and collect interest. The point of owning a credit card is to build your credit score for the future and to 'bonus whore' their rewards program. Having a card is generally very +ev.

If you happen to have rampant consumerism problems, it's probably not a good idea to have a credit card at all.

* Move to a low-tax state, or out of the city
You can save a large amount of money by relocating to a state that does not have income tax. A poker player who makes $100k in taxable income and lives in California with pay $9,300, whereas a pro living in Las Vegas, NV will pay $0 to the state.

One can also save several thousand dollars per year if they choose to move out of the city and into a tax-free or low tax township.

Obviously this is a personal decision, but it can amount to quite a bit in tax savings.

* Tax Breaks
Deductions are an important part of your tax savings. In the event of an audit you will need to show proof of purchase. That computer you just bought, is a business expense. Purchase a filing cabinet and get in the habit of keeping meticulous records.

Both IRA's (Individual Retirement Account) and SEP's (Self Employment Pension) offer tax breaks on your income. It is highly recommended that you contribute to these in some way. Roth IRA's are also a good idea but they are not tax deductible and aren't available to high income earners. Obviously don't max these accounts out if you are tight on money as there are costly penalties for cashing out prior to retirement.

* Live Tournaments
Live tournaments are a great way to make some life changing money but don't get too carried away. Whether you play on your own or you are backed, it's still important to budget how many shots you take in big buy-in live events per year. Treat live tournaments solely as min-vacations from the online grind, not as a means to getting rich quickly. If playing outside of your comfort zone don't be afraid to swap action with a friend or sell pieces of yourself to minimize risk.

*Personal Expenses
This is without a doubt the most important aspect of saving money. The ability to curb personal spending is crucial. The majority of the population sees money as a means to buying more useless shit that they probably don't need. As a poker player you should view money as a tool. This puts you way ahead of 99% of the population who have become enslaved by money because they do not fully understand it.

Avoid purchasing items that add little or no value to your life. It's unlikely that a luxury item like a $5,000 watch with add any more happiness to your life than a more modest $200 watch. Ask yourself, if looking 'baller' is really worth the additional $4,800.
It's nice to treat yourself to little things now and again but does it makes little sense to constantly reward yourself with big-ticket items after a large score. The impending downswing will surely happen sooner or later so be sure to save the bulk of your winnings.

In summary, you should save much, much more than you spend (this is especially true if you are making a lot of money). You don't have to be super frugal to do this, just be prudent and be on the look-out for 'life leaks'. Also, consider opening an account at www.mint.com which can access your various financial accounts allowing you to track how you're spending your money.

Nice post Apology, a lot of people can benefit from what you've outlined here Im sure.

very solid post! Very informative many players can learn from these guidlines.

a++++ thx alot will read again

No one's mentioned this yet but great post, seriously. I use Mint and it's definitely helpful - at the least it serves as a helpful way to set and manage budgets. Totally agree about not wasting money on stupid stuff we don't need. It's so much more important to save and let your money grow slowly over time than to buy plasmas and ridiculous jewelery.

good post....you still living in Lakewood?

a+++++ great post!

If there was a 15 mo black out, wouldn't most pros temp. move to a poker friendly country? Nothing wrong with being an expat, imo. Plus as an expat you get a tax deferment on the 1st $91.5K you make.

Apology is far and away the best poster on this site imo. I don't think i've ever read one of his posts that I don't agree with. Very well written post here, as usual. A+

Would the blackout also affect US territories, such as Puerto Rico?

really good post

Nice post. Thx for your thoughts

awesome post, i suck at life

Solid post!