When it comes to sports betting topics, bankroll management might not be the sexiest topic to discuss, but it is the most important one. If you want to become a successful long-term bettor, learning the art of bankroll management is essential. But what’s even more important is sticking to the bankroll management rules of your layout at the start of your journey.
What is Bankroll Management?
The bankroll you have in sports betting is very different from that in the real world. When you get your paycheck, you must deduct the money needed for all your necessities and bills, such as rent, gas, utility, electricity, loans, grocery, etc. Once you’re left with the excess amount, you must decide how much of that money you are willing to allocate to betting. Of that amount, the percentage you dedicate to sports betting is your total bankroll for “sports betting.”
It’s advised not to use the entire betting bankroll in one area to spread your risks. If you’re too aggressive and make a wrong move, you’ll lose your entire bankroll in one go and have nothing left to place new bets. Therefore, managing your bankroll well is the most crucial step.
How Much to Wager on Each game?
In the perfect world of experienced bettors, it’s safe to bet 1% of your monster bankroll on a single bet comfortably. However, this is not ideal for newbie bettors who are just starting. For example, if you’re starting with $1,000, placing a wager worth $10 is not enticing or fun. There’s room to go as high as 5%, but nothing above that. That’s because anything over 5% is just too risky.
If you’re looking for a safe zone for the initial few bets, we’d recommend sticking to 2.5% or somewhere around it.
What Are Units?
Unit is a measuring term used in sports betting that helps you compare your results with other bettors’ results. For example, if a person has $10,000 in his bankroll and another person has $800, it wouldn’t be fair to compare and see who made more money wagering on MLB just based on their bankroll size.
When you set up a unit, it allows the bettors to determine how much their bankroll has increased from what they started with before wagering. For example, if you started with $250 and ended up with $700, you’re up by 4.5 units (or 4.5u).
Successful Bankroll Management Strategies
It goes without saying that you don’t always have to bet the same fixed amount on each bet. Sometimes some opportunities call for smaller wagering amounts, and some that call for bigger. There are tried and tested bankroll management strategies to help you manage your money accordingly.
This is one of the simplest betting strategies and the safest for long-run betting. You set your unit size and then wager one unit precisely for every bet or wager you make. Elements such as the odds, confidence level, and recent betting form don’t really matter here.
The only thing you have to consider with this betting model is deciding whether you want to go with the “risk” or the “to win” method. With the “to win” way, you must consider the juice to win one unit. For example, a bet with -110 odds requires you to wager 1.1u to win 1.0.
With the “risk” model, you won’t bet any additional units that might be necessary to cover the vig. For example, the same bet with -110 odds will require you to wager 1.0u to win potentially 0.91 (the vig is subtracted from your winnings).
One of the most significant advantages of this model is that it preserves your bankroll while ensuring you’re still making a profit. Even if you don’t win, you’ll at least be hitting a break-even. However, this model requires periodic reviewing of the bankroll every now and then.
If you’ve gone down by a solid handful, you must reconsider the unit size and adjust it accordingly to suit your updated bankroll.
This model is also similar to the flat betting model, with the only difference being in your unit size being determined by your bankroll size. Even though the numbers will be similar initially, the unit sizes will move much faster with the percentage model than with the flat model.
For example, a person started with a bankroll of $1,000. For your standard unit to be 2.5%, your first wager needs to be $25 in both models. But if you win the first bet, your bankroll will be bumped to $1,025, increasing your next wager to $25.63 (2.5% of the total bankroll) as per the percentage model.
This method really allows you to take full advantage of your winnings and make the most of it while you’re on a streak. However, if you don’t realize when your losing streak starts and continue wagering, you can lose your bankroll as quickly.
Understanding Your Bettors
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