How to Manage a Betting Bankroll
When sports betting, it’s important to have a set bankroll for your betting activity. Not only does this ensure that you only spend money you can afford, but it helps you structure your bets rather than betting random amounts based on gut feelings.
However, it’s important that you manage this bankroll, so you don’t go broke during the downswings. This is called sports betting bankroll management, and it’s what we will be looking at in this article.
What Is the Managing of a Bankroll?
Managing a bankroll is the act of structuring your bets to reduce the risk of financial ruin. It’s similar to managing money in real life:
You work to earn money, which you then use to buy things you enjoy, and as you continue to work, you get more money.
If you’re a responsible person, you wouldn’t go out and spend so much that you bankrupt yourself; you will spend within your means until your next paycheck.
Sports betting money management is just the same; you bet in a way that allows you to continue betting and reduce the risk of going broke.
In sports betting, your ability to make money is dictated by the amount of money you have, so if you make crazy bets for larger percentages of your bankroll, you’ll likely go broke and have to rebuild your bankroll from scratch.
Most sports bettors will use a concept called “units” to help manage their bankroll. This involves dividing your bankroll up into small fractions to bet with, allowing you to limit the risk on each bet you make.
Most sports bettors will have a unit size equal to 1% of their bankroll, but you can adjust the size of the units you use, depending on your risk tolerance.
Types of Bankroll Management
You can use different types of sports betting bankroll management to reduce your risk of ruin. These different strategies will vary in risk levels and reward, so you need to ask yourself whether you’re comfortable with taking more risk for a potentially greater reward.
Tips for Managing Your Bankroll
Now that you know what bankroll management is and the strategies you can use, here are some helpful tips to ensure you manage your bankroll the most efficiently as possible.
What Are The Pros and Cons of Bankroll Management?
While bankroll management is often viewed as essential for serious sports bettors, it has its drawbacks, so let’s examine the pros and cons.
△ Reduces Risk of Ruin – Using proper bankroll management reduces the risk of a bad run of results wiping out your bankroll.
△ Helps You Easily Track Results – If you think of your bankroll in terms of units and bet in a uniform way, it becomes easier to track your wins and losses and, therefore, your overall profitability.
△ Easy To Follow – Most bankroll management strategies are easy to follow, so you don’t get bogged down in calculations before making your bet.
▲ Reduces Profits – By using bankroll management, the amount you risk on each bet is relatively small, reducing your profits on the bets you win.
▲ Limits Certain Betting Strategies – Not all bankroll management strategies fit with certain betting strategies. For example, if you’re good at finding value in underdog bets, you’ll make a lot more money with a confidence betting model than with a fixed model.
Why You Should Use Bankroll Management
If you want to make your betting money last, bankroll management is essential. It drastically reduces your risk of ruin by limiting the amount you risk on each bet. This preserves your bankroll during downswings while still allowing you to make money when on an upswing.
You can use many different bankroll management strategies, and we advise you to pick the one that best fits your tolerance for risk.
Bankroll Management FAQ