While many people view sports betting as just a leisurely pastime, there are some who aspire to take their betting game to the next level. The idea of becoming a professional sports bettor may seem like a far-off dream, but it’s not an unattainable one. In fact, there are individuals all around the world who make a living from betting on sports.
If you’re one of those people with aspirations to become a professional sports bettor, then it’s time to take heed of the advice in this article — the most critical component of a successful sports betting strategy is managing your bankroll.
Bankroll management entails how you choose to allocate and handle your funds when placing bets. By employing sound bankroll management techniques, you can develop a long-term betting strategy and increase your chances of making it to the upper echelons of professional betting. Conversely, if you neglect your bankroll management, you’ll find yourself heading straight for Brokes-ville.
This guide will take you through every step of becoming a master of your own bankroll management. We’ll provide you with all the tips, rules, and guidelines that you need to know to take full control of your gambling budget and, therefore, your sports betting destiny.
With a bit of knowledge and some discipline, you can position yourself to succeed in the world of professional sports betting! We’re not trying to sound like your high school guidance counsellor, but this information is crucial. It could be the difference between living your dream and falling short.
First Things First: Why Do You Need Bankroll?
Bankroll management is a vital aspect of sports betting, often overlooked by novices and experienced bettors alike. Mastering this skill can drastically increase your chances of long-term success and minimise the risk of financial ruin.
Here are a few reasons why having a dedicated bankroll is crucial to your sports betting endeavours:
Preserving Your Betting Capital
A dedicated bankroll serves as the foundation of your sports betting activities, allowing you to allocate funds specifically for wagering purposes. By separating these funds from your daily expenses and savings, you create a safety net that protects you from potential financial hardships.
Managing your bankroll effectively ensures that you can continue betting even during losing streaks, giving you the opportunity to bounce back and achieve profitability in the long run.
Managing Risk
All forms of gambling involve an element of risk, and sports betting is no exception. Bankroll management helps mitigate the inherent risks by establishing guidelines for how much money you’re willing to risk on each wager.
By adhering to these limits, you can prevent overextending yourself financially and maintain control over your betting activities, even when faced with unexpected outcomes or setbacks.
Promoting Discipline and Self-Control
One of the most significant challenges faced by bettors is maintaining discipline and self-control in the face of emotional highs and lows.
A well-structured bankroll management plan encourages responsible gambling habits by providing a framework for making informed decisions about when to place bets and how much to stake. This disciplined approach can help you avoid impulsive wagers or chasing losses, which often result in further financial damage.
Facilitating Performance Analysis
A key aspect of successful sports betting is continuous self-improvement through analysis of past performance.
By tracking your bets and managing your bankroll systematically, you can identify trends, strengths, and weaknesses in your betting strategy. This valuable information enables you to make data-driven adjustments and refine your approach over time, ultimately maximising your chances of long-term success.
Enhancing Decision-Making Abilities
Effective bankroll management fosters a more analytical mindset when it comes to sports betting decisions. Instead of relying solely on intuition or emotions, a solid bankroll management plan encourages bettors to carefully consider factors such as odds, value, and risk before placing wagers.
This deliberate approach leads to better decision-making abilities, which are critical for achieving consistent profitability in the world of sports gambling.
As you can see, the importance of bankroll management in sports betting cannot be overstated. By dedicating specific funds to wagering activities and implementing a robust bankroll management strategy, you can protect yourself from financial hardship while maximising your potential for long-term success.
Remember that responsible gambling habits, discipline, and continuous self-improvement are essential ingredients in the recipe for profitable sports betting — so start managing your bankroll today and reap the rewards!
How to Develop an Actionable Bankroll Management Plan
Your bankroll is the sum of money you allocate for sports betting, completely separate from your daily expenses and savings. It is crucial to view this amount as an investment, not disposable income. By treating your bankroll with respect and responsibility, you’re setting the stage for long-term success.
Here are the steps you should follow in coming up with an actionable bankroll management plan suited to your individual betting needs:
Determining Your Starting Balance
Establishing a starting bankroll is a highly personal decision that depends on factors such as income, risk tolerance, and betting experience.
A general rule of thumb is to set aside an amount you’re comfortable losing without dire consequences. Crucially, it’s essential to note that the funds allocated for sports betting must be entirely separate from those designated for daily expenses and bills. Blurring these lines can result in emotional decision-making and financial strain.
To avoid this, you should create a separate fund for sports betting, also known as your bankroll. This money should be dedicated solely to betting and not needed for bills or living expenses. You should set a limit for your bankroll, and if you exceed it, you can withdraw money and move it to your regular bank account.
Example:
If you set your bankroll at £500 and reach £750, you would take out the excess £250 as profit and return your bankroll to its initial £500.
When determining the amount to put into your bankroll, it’s essential to consider your current situation and comfort level with losing that money.
For beginners, it’s wise to start small — with as little as £100-£300 — and gradually increase your bankroll as you gain experience and refine your betting skills. On the other hand, more serious bettors may start with £300-£1,000 or more. The goal is for this amount to last for a considerable period of time and grow as you become more successful.
Once you decide on your starting balance, move it to a separate account, such as an e-wallet or a separate bank account. Keeping the money separate from your regular funds will help you manage your bankroll more effectively and avoid emotional decisions.
Setting Betting Units
Once you have established your bankroll, the next step is to determine how much money to bet on each wager.
Sports betting is a long-term game, so it’s important to avoid the temptation of trying to double your bankroll in one day. Instead, focus on slowly building your bankroll over time and budgeting accordingly.
Example:
If you believe that you have a 25% chance of winning a bet with a payout of +500, you may decide to bet £150 on that game. However, if you don’t budget your money properly and run out of funds before you withdraw your gains, you won’t make any profit.
To avoid this, you need to determine the right amount to bet based on the size of your bankroll, i.e., a betting unit.
A betting unit represents a fixed portion of your bankroll dedicated to each wager. Most professional bettors suggest risking between 1% and 5% of your total bankroll on any single bet.
As a general rule of thumb, conservative bettors should bet 1%-2% of their bankroll, while aggressive bettors may bet 4%-5%. To illustrate the example on a bankroll of £500, a conservative bettor would bet about £10 per wager, and an aggressive bettor would bet about £25.
By adhering to this range, you’re able to maintain a level of consistency in your bets while also limiting potential losses. Remember that betting too aggressively can lead to having to reload your bankroll if you go on a losing streak.
It’s important to establish betting units every time you reset your bankroll.
Do I have to bet this amount on each bet?
It’s important to note that the recommended bet sizes based on your bankroll should be viewed as maximums rather than set amounts for every bet.
You should bet an amount that you’re comfortable with and that works best for your strategy. It’s perfectly acceptable to vary your bet sizes depending on your confidence level in each bet and the potential value of the bet.
Example:
You’re an aggressive bettor with a £500 bankroll, and you’re considering making two bets on upcoming games.
The first game is a lock, and you believe that the payout odds are significantly in your favour. The second game is more of a toss-up, but you still see some value in the bet.
In this scenario, it’s recommended to bet £25 on the first game and perhaps bet £10 or £15 on the second game instead of wagering a set amount of £25 on each of these bets.
Remember, there are no hard and fast rules when it comes to betting units — it all depends on your individual system and your confidence in each bet. Just keep in mind that the recommended bet sizes based on your bankroll should serve as your maximum bet size.
Even if you feel confident that a bet is a sure thing, you should not exceed the recommended bet size for your bankroll.
Variance in Different Types of Bets
It’s important to consider the types of bets you are making and how much variance they have.
Certain bet types have higher variance and may require you to endure more losses before you can cash in on your gains. For instance, if you’re betting on NFL point spreads, there won’t be as much variance as if you’re betting on five-team parlays.
The variance of your bets determines how much your bankroll will fluctuate. While you’ll likely make various types of bets, it’s important to predict the main types of bets you’ll be making and their variance.
If you’re placing higher-variance wagers, it’s best to bet on the conservative side. However, if your bets have lower variance, you can choose to bet anywhere along the spectrum.
Resetting Your Sports Betting Account
Earlier, we mentioned the importance of not changing your bet sizes until you go through a reset. So, what exactly is a sports betting reset?
A reset is when you take the time to either cash in on your profits, reload your account to its starting point, or change your betting limits. This is done all at once, so you don’t have to constantly recalculate everything whenever you place a bet.
Example:
You have a bankroll of £500 and a maximum bet of £25 (5%) because you’re an aggressive bettor.
You win a £100 bet and now have a bankroll of £600. Technically, 5% of £600 is £30. Should you up your bet amount? If you lose a £25 bet and your bankroll drops to £475, should you adjust your bet to the new 5% (£23.75)?
It would be difficult, tiresome, and time-consuming to update everything every time you win or lose a bet.
This is why bettors use a reset. They keep everything the same until a designated time when they reconfigure everything. You can choose how often you want to do this, but it’s recommended to do so weekly, every two weeks, or monthly.
If you bet frequently, you may prefer a shorter time frame, while if you bet occasionally, monthly may be better for you.
Let’s say you choose to do a reset weekly. After your first week of betting, you profit £300, and your bankroll is now £800. It’s time to do your reset, and you need to decide whether to change your bet size, increase your bankroll, or cash in on some of the profits. However, before you start betting, it’s important to establish an upper limit.
Upper Limit
An upper limit is a specific amount of money that you set for your bankroll, and if you reach it during a reset, you cash out the profit.
Returning to the example above, if you set an upper limit of £750 and your bankroll reaches £800, you would cash out the £50 profit and return your bankroll to the initial £500.
If your bankroll does not exceed the upper limit during a reset, you can leave the funds in your bankroll for the next betting round. For instance, if you make a profit of £150 during the week and your bankroll grows to £650, which is below the upper limit of £750, you may choose to leave all £650 in your bankroll and keep your individual bet maximum at £25.
In the case of losing bets, we suggest recalculating your maximum bet size according to your current bankroll. For example, if you lose £100 in the first week and your bankroll falls to £400, your new maximum bet size would be £20, which is 5% of your new bankroll — considering that you still remain an aggressive bettor.
The frequency of resets will affect how often you adjust your bet size when losing. If you are comfortable with more risk, longer reset periods may be appropriate, whereas if you are risk-averse, you should opt for shorter reset periods.
Building Up Your Bankroll
If you want to grow your bankroll and increase your betting units, you need to decide whether you want to commit all your winnings to building your bankroll or withdraw some of your profits along the way.
Continuing with the example of a bankroll of £500 and you being an aggressive bettor. At your first reset, you made £300, and your bankroll now sits at £800.
If you choose to use 100% of your profit towards growing your bankroll, you would take out no money and reset your bet size to 5% of your new bankroll. 5% of £800 means a new individual bet maximum of £40.
If you decide to withdraw some of your profits, however, you can come up with a percentage to cash out and a percentage for growth. For example, you can choose to withdraw 50% of your profit and use the other 50% for growth.
Continuing with this scenario, you would take £150 (50%) of your profit off and then recalculate your new bet size from your bankroll of £650. Your new bet size would be £32.50. You would continue with either of these bankroll management plans until your bet size reaches the desired amount.
Example:
If your ultimate goal is betting £50 per game, it would require a bankroll of £1,000 to stay within proper bankroll management standards.
If you were doing the 50% split, once you hit £1,000 in your bankroll, you could start taking 100% of your money off as profit.
It’s advisable to continue growing your bankroll until your desired bet size becomes 3% of your bankroll.
This means that if your desired bet size is £50, your bankroll requirement for an aggressive bettor would be £1,000. Still, it is recommended that you continue growing your bankroll until that £50 becomes 3% of your bankroll, which means your bankroll would need to get to about £1,666.
This approach helps solidify your longevity in the sports betting world and makes things much less risky over the long run.
Can I Add Money to My Bankroll Manually?
If you’re looking to increase your bankroll, adding money to it manually is always an option.
For example, you could add £50 to your bankroll every two weeks from your paycheck. This is a common and popular strategy for new sports bettors who want to slowly build their bankroll and increase their betting units.
However, if you do choose to add money manually, it’s essential to stick to the amount that you initially planned to add. Don’t add more just because you had a tough betting period or have some extra cash on hand.
Additionally, it’s a good idea to add funds in line with your resets so that you can recalculate your bet sizes accordingly. This will help ensure that you’re consistently sticking to proper bankroll management guidelines.
Potential Threats to Your Bankroll
The world of sports betting can be a thrilling and lucrative adventure for those who can navigate its potential pitfalls. However, protecting your bankroll from various threats is crucial to ensuring long-term success in this high-stakes domain.
Below, we’ve listed the common hazards that could negatively impact your sports betting budget, along with valuable tips on how to avoid them. By being aware of these obstacles and implementing effective strategies, you will be well-equipped to preserve your funds and prosper in the exhilarating realm of sports wagering.
Theft
The harsh reality is that any time money is involved, theft becomes a potential risk. Regardless of whether it’s a physical robbery or cybercrime, losing your hard-earned bankroll can be a crushing blow.
To protect yourself from theft, there are several precautions you can take:
Betting Under the Influence
The negative effects of alcohol and drugs on decision-making are well-documented, and indulging in these substances can lead to disastrous consequences for your sports betting balance.
When intoxicated, you may be more likely to disregard bankroll management principles, chase losses, or make impulsive wagers, all of which will put your entire bankroll at risk.
To prevent substance-related issues from jeopardising your sports betting endeavours, establish strict personal rules regarding intoxicants. Avoid placing bets while under the influence, and consider implementing a self-imposed cooling-off period if you find yourself tempted to wager after consuming alcohol or drugs.
By maintaining sobriety while engaging in sports betting activities, you’ll be better equipped to make sound decisions and manage your bankroll effectively.
Emotional Betting
The emotional highs and lows associated with sports betting can be both exhilarating and dangerous. Allowing these emotions to dictate your betting decisions could result in catastrophic consequences for your bankroll.
Emotional bettors often fall into patterns of overconfidence during winning streaks or desperation during losing streaks — both of which can lead to reckless behaviour and poor decision-making.
To maintain a level-headed approach to sports betting, cultivate self-awareness and practice emotional detachment from the outcomes of individual bets or games. This skill set will enable you to focus on the bigger picture — long-term profitability — rather than getting caught up in short-term fluctuations.
Lack of Proper Bankroll Management in the First Place
Even seasoned bettors can succumb to poor bankroll management practices if they become complacent or fail to adhere to a disciplined strategy consistently. Neglecting proper bankroll management can lead to rapid depletion of funds or difficulty recovering from inevitable losing streaks.
To protect your bankroll from these threats, create a comprehensive management plan that includes setting wagering limits based on the following:
By adhering to this plan and continuously refining it based on your performance data, you’ll be able to safeguard your funds and maximise your sports betting success.
Loss-Chasing Trap
Chasing losses is one of the most perilous temptations faced by sports bettors — attempting to recoup past losses by doubling down on high-risk wagers often leads to further financial damage. This mindset can cause reckless behaviour that spirals out of control, consequently decimating your precious bankroll.
To resist the urge to chase losses, establish strict stop-loss limits for yourself and remain focused on long-term profitability rather than short-term gains. Remind yourself that sports betting is inherently unpredictable — even the most astute predictions aren’t guaranteed winners — so learning how to cope with losses gracefully is an essential aspect of successful wagering.
Of course, successfully navigating the potential threats to your sports betting bankroll demands vigilance, discipline, and self-reflection at every turn. By recognising these hazards and proactively employing strategies to mitigate their impact, you’ll stand a much better chance of preserving your funds and enjoying sustainable success in the world of sports wagering.
Remember that achieving long-term profitability hinges not only on accurate predictions but also on effective bankroll management — so stay alert and bet wisely!
The Bottom Line
As you can see, mastering sports betting bankroll management is an ongoing process that requires discipline, self-awareness, and patience. By implementing these principles and regularly assessing your progress, you’ll be well on your way to building a sustainable and profitable sports betting career.
So strap in for the ride — because with proper bankroll management under your belt, there’s no telling how far you can go!
