Bankroll management

bankrollAmong hobby punters, it is common to simply take a bill out of the wallet and pay for a bet, using money that could just as well have been used to buy drinks, pay for groceries or have the car detailed. Online, many gamblers have a player account with a gambling site that they use not just for sports betting but for forays into blackjack, roulette, finance betting, binary options, or whatever else strikes their fancy and is available on that specific site. This type of arbitrary mingling of sports betting funds with other funds are a bad idea for several reasons. Here are some of them:

  • It will be difficult for you to keep track of how successful your sports betting venture is over time.
  • If you always let sports betting wins go into your general economy, you will not build up a dedicated sports betting account that can sustain your betting during rough times. All sports bettors, even highly skilled ones, tend to encounter rough patches when they lose quite a lot.
  • If you co-mingle sports betting wins with your household money, it can become more difficult for you to set firm boundaries for your wagering. If you used a big sports betting win to pay rent and utilities this month, you might be tempted to wager money that should be reserved for paying rent and utilities next month.
  • If you accept a gambling bonus then your money might be locked until you have met the wager requirement.  This can be very stressful if the money you deposited is a part of the household budget.  You can learn more about how wager requirements work by visiting insä A website devoted to gambling bonuses.

You should establish a bankroll that is strictly used for sports betting. When you win, this money goes into the bankroll. When you lose, it is not the end of the world because you are only losing money from your bankroll, not money that should have be used to pay for more important things in your life. You are only gambling with money that you can afford to lose. This approach is not only good for your personal finances, it is also a good way of becoming more detached and being able to make rational sports betting decisions.

moneyOf course, the ultimate goal for most punters is to go plus and be able to spend the money, but if you are serious about sports betting this should be a long term goal – not a short term goal. You need to sit down and set some boundaries for yourself. Exactly what they will look like is up to you. You can for instance decide that once your bankroll has reached €5,000 you will start to withdraw 10% of your net gain each month and spend that money on things that you enjoy. If the bankroll dips down under €5,000 you will stop the monthly withdrawals until it is up above €5,000 again.

Let your bankroll guide your betting

Once you have established the rules for bankroll building and withdrawals, it is time for you to determine your own rules for bet size. A good rule of thumb is to never allow an individual bet to be larger than 5% of your bank roll. Many successful punters are even more strict that this, and set their boundary at 2% or 3%. You should also be careful about how much you bet on a single sports event, even if you spread it out over several individual bets.