If you budget in your everyday life, you should be budgeting in your sports betting life as well. There is no excuse to think you can get away with becoming a successful bettor in this world without having a strict bankroll management strategy and knowing how you plan to delve out your money.
Bankroll management refers to how much you plan to bet and how you plan on coming up with that number. There are plenty of strategies to consider when coming up with this number and plenty of other factors that go into how exactly you plan on actually wagering. We will check out all of that and more in this article.
What is Bankroll Management?
Bankroll management is an essential aspect of sports betting. It refers to the process of managing one’s money effectively to ensure that they can continue to place bets without running out of funds. Proper bankroll management involves setting a budget, determining the size of bets, and monitoring wins and losses.
One of the most important steps in bankroll management is setting a budget. This involves determining how much money you are willing to spend on sports betting and sticking to that budget. It’s essential to remember that sports betting should always be considered a form of entertainment and not a way to make money. It’s important to only spend money that you can afford to lose. You want to cut down on the margins that these sportsbooks have and having a bankroll is a big step in that.
A unit size is the amount of money you plan on wagering on each bet and it is usually represented by a percentage. This can vary depending on the amount of money you have in your bankroll, but it’s generally recommended to keep the size of your bets at 1-5% of your bankroll. This ensures that even if you lose several bets in a row, you will still have enough money left to continue betting.
Unit sizes completely differ from bettor to bettor. For example, let’s say a bettor has set a budget of $1,000. They decide to keep the size of their bets at 1% of their bankroll, which means they will be placing bets of $10 each. The individual starts off by placing a $10 bet on a football game and wins, increasing their bankroll to $1,010. They then place a $10 bet on a basketball game and lose, decreasing their bankroll to $1,000. They continue to place bets of $10 each, and over the course of a month, they win some bets and lose others.
When it comes to a bankroll and managing it, there are tons of different strategy styles. These styles dictate how you delve out your wagers and determine how much money you have towards your bankroll and unit sizes.
This is the most simple and safest betting model when it comes to being successful and protecting your assets. The flat betting is a betting model that involves placing the same amount of money on each bet, regardless of the outcome of previous bets.
One of the main advantages is that it’s a more conservative approach to betting, which can help reduce the risk of losing large amounts of money. By placing the same amount of money on each bet, you are less likely to experience big losses, even if you have a losing streak. Another advantage of flat betting is that it’s a simple and easy-to-understand model. It’s a straightforward approach that doesn’t require complex calculations or strategies. This makes it an ideal model for beginners or those who prefer to keep things simple.
Percentage Model Betting
The percentage model, also known as the Kelly Criterion, is a betting model that involves determining the size of a bet based on the probability of winning and the potential payout. The goal of this model is to maximize the growth rate of the bettor’s bankroll over time.
Resource: Sports Betting Calculator
To use the percentage model, a bettor must first determine the probability of winning a bet and the potential payout. They then use a formula to calculate the optimal percentage of their bankroll to wager on that bet. This percentage is determined by the difference between the potential payout and the probability of losing. The percentage model is considered a more advanced betting strategy and novice bettors are encouraged to steer clear of this model in the very beginning.
It’s pretty much what it sounds like when it comes to a confident sports bettor. If you are buying picks or following a handicapper, they will often give a unit size next to their picks. These unit sizes represent the confidence that the handicapper has in their wager.
The more confident a bettor is in a wager, the more units they are going to wager. The less confidence, the less they wager in unit size.
Let’s give an example of this confidence model. If the undefeated Georgia Bulldogs are facing the Vanderbilt Commodores in the regular season and the Bulldogs are a 12-point favorite, a bettor may say it’s a “5-unit play” which means they will bet 5x the normal amount.
If the Georgia Bulldogs are now playing the Alabama Crimson Tide and they are 6-point favorites, you may say that it’s a “1-unit play” or even a “half-unit play” which means it’s still a bet they are willing to make but there is far less confidence in it.
Comparing anything in life is usually a pretty poor idea, especially when it comes to money. Everyone is going to have a different bankroll and a different unit size and you should not shame anyone or feel shamed by anyone. The most important thing you can do is stick to your bankroll and unit size, not feel like you have to change it for anyone’s benefit, and on top of that, you want to make sure that you don’t coerce anyone to change their own management and up their bet.
Tracking your bets
It’s also important to monitor your wins and losses. Keeping track of your results can help you identify patterns and make adjustments to your betting strategy if necessary. This can also help you identify when it’s time to take a break and stop betting to avoid losing more money than you intended. Bankroll management is a crucial aspect of sports betting.
By setting a budget, determining the size of your bets, and monitoring your wins and losses, you can ensure that you are able to continue betting without running out of funds. Remember, sports betting should always be considered a form of entertainment and not a way to make money.