Getting by as a keen gambler isn’t only about making the right wagers at the right time. In fact, the betting aspect of the whole thing takes a decisive backseat to bankroll management.
Just as is the case with casino gaming, the key to success in all aspects of gambling lies in the way you handle your bankroll. Money management being the single most important skill to master as a sports bettor. It might not be the most glamorous or exciting aspect of the whole thing, but it’s far too important to take for granted.
So whether you prefer betting with traditional bookmakers or the top-rated casino sites on the web right now, you need to give sufficient priority to bankroll management.
What is Bankroll Management?
At its core, bankroll management is a term that refers to the way you manage your finances as a gambler. The effective bankroll management process takes place in three component stages, as follows:
- Stage One. This is where you allocate exactly how much money you can afford to gamble, which should be a sum that you can comfortably lose with no dramatic consequences.
- Stage Two. It’s then a case of establishing a series of rules and limitations, with respect to how much you can wager at one time, your risk appetite and so on.
- Stage Three. After which, all you need to do is keep a close eye on your gambling activities and ensure the rules you established in stage two are followed at all times.
The term ‘bankroll’ refers to the total amount of money you allocate for gambling purposes. If you sign yourself a total gambling allowance of £100 for the month, your bankroll is £100. The purpose of bankroll management is to ensure that are you not only remain within the confines of this £100, but also make it last as long as possible.
After all, it’s all about getting maximum value and enjoyment for your money.
On paper, bankroll management sounds easy enough. In practice, it can sometimes be difficult to prevent your emotions and/or enthusiasm from getting the better of you.
Why Does Bankroll Management Matter?
If you have all the money in the world and can afford to lose pretty much any sum imaginable, bankroll management isn’t important. For the other 99.99% of gamblers, it is. If you have finite finances at your disposable, bankroll management is essential.
In essence, bankroll management holds the key to gambling responsibly and enjoyably. When you apply a bankroll management strategy effectively, it becomes impossible to lose more than you can afford to lose. It also gives you some kind of effective framework for your gambling activities, as an alternative to simply making things up as you go along.
Just a few of the benefits of effective bankroll management in sports betting include the following:
- You’re less likely to spend and lose money you can’t afford to lose.
- It becomes easier to walk away from a losing streak
- You also learn when to walk away from a winning streak
- Falling into the trap of chasing losses is less likely
- You’ll make more rational decisions based on logic
Irrespective of your budget, bankroll management is all about maximising enjoyment and safety when gambling.
Maximum Wagers, Wins and Losses
After establishing your gambling allowance for the month, it’s then a case of determining how much you can comfortably win or lose during any one sitting.
In a working example, let’s say you have a monthly gambling allowance of £100. If this is the case, it’s hardly advisable to bet say £95 or even £50 on a single outcome. If you lose, you’ll have next to nothing left for the rest of the month. As a rule of thumb, many professional gamblers advise sticking with a maximum of 2% to 5% of your total bankroll for each wager. The classic case of avoiding putting all of your eggs in the same basket.
Likewise, it a good idea to draw a line regarding when and where you walk away. In this instance, you could specify that on any day your winnings top £50, you walk away and pocket your profits, rather than putting them on the line. In the same vein, daily losses totalling £20 could be your prompt to quit while you’re behind and try again another time.
Once again, it’s all about making the most of your bankroll and using logic to guide your decisions. On winning streaks and losing streaks alike, it can be very difficult not to succumb to emotional influence. Hence, logic is one of the defining characteristics of the savvy, sensible and successful gambler.
The Dangers of Poor Bankroll Management
At the opposite end of the scale, you have those who simply make things up as they go along. No big deal for gamblers with limitless bankrolls – problematic for everyone else.
Given that effective bankroll management is a hallmark of responsible gambling, poor bankroll management is a recipe for disaster. In fact, it’s by failing to prioritise bankroll management that many develop dangerous gambling habits.
If you don’t establish a sensible monthly maximum spend, you’ll inevitably end up spending more than you can afford to. If you don’t master the art of quitting while behind, you’re doomed to failure while chasing losses. And if you let your emotions get the better of you, it’s game-over.
As mentioned right at the top, bankroll management never has been and never will be glamorous or exciting. Particularly if you go so far as to maintain written records of your gambling activities and spending, which comes highly-recommended. Nevertheless, it’s exactly what you need to do if you want to stay safe and make the most of your available budget.
In a nutshell therefore, it’s simply a case of establishing how much you can afford to spend, how much you’re willing to lose and the appropriate time to walk away. Get into the habit of managing your bankroll efficiently and it will soon become second-nature.
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