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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.

Bankroll Management Type Models
Flat Betting Model	Percentage Betting Model	Confidence Model
This is the easiest sports betting bankroll management strategy to follow since all you need to do is set your unit size, say $5, and bet exactly one unit on each wager, regardless of the odds you’re given or your confidence level on the bet winning. If your bets win at greater than the breakeven point for the odds you’re betting, you’ll make money, but you won’t be maximizing your profit by betting one size. It’s also worth it to evaluate your unit size if you are up or down a significant number of bets to reflect your new bankroll size.	This model is similar to the flat betting model in that you choose your unit size and only bet one unit regardless of confidence or the odds. However, rather than choosing a monetary amount for your unit size, you pick a percentage of your bankroll. Therefore, as your bankroll increases or decreases, your bet sizes move with it while your unit size remains the same. For example, you have a bankroll of $1000 and a unit size of 1%. You make a one-unit bet ($10) at odds of +300, and you win, meaning that your new bankroll is $1030. So, the next time you go to bet, your bet should be $10.30, as that is 1% of your new bankroll.	Rather than betting one bet size -no matter how confident you are- as a result, this model allows you to increase the number of units you bet depending on how confident you are of winning. However, it’s usually not advisable to go higher than 3-4 units, even if you’re supremely confident in your prediction. It’s also best to practice this model before you use it. If you use a flat betting model, to begin with, you can track your confidence levels and see how often your predictions are correct. If the ones you’re confident in win more often, you can switch to this model, knowing you’ll likely make more money.

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.

Bankroll Management Tips
Track Your Results	Know Your Odds	Know Your Risk Level
No matter what bankroll management strategy you use, you should be tracking your results. Not only is it important for strategies like the percentage betting model, but keeping accurate records allows you to see just how profitable or unprofitable you are.	You should know how often you need to win a bet to be profitable based on the odds you’re given. If you don’t know that, you won’t be able to tell whether your bet makes or loses money. If you need a refresher, check out our “How to Read Betting Odds” page.	The bankroll management strategy you pick, and the amount you risk per bet, should all depend on your personal tolerance for risk. If you’re just betting for fun and can easily replace your bankroll, then feel free to bet a higher percentage, but if you aim to make money, you should choose a low-risk strategy.

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.

🔷 Pros:

🔹 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.

🔶 Cons:

🔸 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

How Important Is Bankroll Management?

If you want to be a successful sports bettor, bankroll management is extremely important. It reduces your risk of ruin and protects your bankroll during bad times while still allowing you to profit when things are going well.

What Is Bankroll Risk?

Bankroll risk is the amount of your bankroll you risk per bet. Most sports bettors call these “units,” and it’s advised that these units are a small percentage of your bankroll. The more of your bankroll you risk, the more likely you are to go broke.

How Much of Your Bankroll Should You Risk?

Most professional sports bettors say that you should only risk between 1-5% of your bankroll per bet, depending on your personal risk tolerance.

How Many Sports Bets Should I Make a Day?

When it comes to sports betting, less is more. You need to focus on the quality of the bets you’re making rather than on the quantity. Making 1-2 winning bets daily is far better than making 10-15 bets and hoping you make money.

How Big Should Your Bankroll Be?

When it comes to sports betting, there’s no set rule on how big your bankroll should be. Your bankroll should only be as much as you can afford to lose; whatever amount of money that is will depend on your very own circumstances.