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Setting aside a certain amount of money for poker that you can afford to lose without it negatively impacting your daily life is a crucial part of managing your bankroll effectively. You can make sure that you're not gambling with money you need for other bills or that a loss won't have a big effect on your finances by designating a specific bankroll for poker. Also, being able to move up or down in stakes based on the size of your bankroll can help you manage risk effectively. Raising the stakes can help you take advantage of possibly larger profits if you're doing well and increasing your bankroll. However, lowering your bets can help shield your bankroll from sizable losses if you're losing money or performing poorly.
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