Money management is a frequently overlooked aspect of sports betting. While you’re scouring the web for tips and stats it’s easy to forget that the amount of money you bet is the key to being profitable. The odds dictate that every so often you’ll win but most people don’t know how to manage their money to maximise profits and minimise loss. Follow these tips to make sure you’re betting wisely:
Set a Bankroll
Firstly, establish a fund strictly for gambling. Often referred to as bankroll, this should always be money that you can afford to lose, not money that needs to be spent on essentials such as rent, utility bills and groceries. There will always be games to bet on so if you can’t afford to gamble at the moment wait until your financial situation improves. A good idea is to limit yourself to a certain amount every month, say £10, and stick to it. If you earn enough money to justify wagering £100 per month, then spend that amount but no more.
Use a Percentage System
Once you’ve determined your bankroll amount, you can plan how to apportion it. Most experienced gamblers tend to wager a percentage of their bankroll on different bets, rather than blowing it all on one bet. The most common method is called the Kelly Criterion. It was created by physicist Edward L. Kelly as a way of betting on horseracing, but applies just as well to football rugby and other sports. It involves multiplying the odds of an event (2/1 for example) by the probability of winning (33% for example); from this is subtracted the probability of losing; then this is divided by the odds.
For example, in a football match let’s say there’s a 33% chance that the home team will win and the odds on them to do so are 2/1 – multiply those (3*0.33) and we get 0.99. Our odds of losing are 67% or 0.67, which subtracted from 0.99 gives 0.32. Divided by the original odds (3) this, this roughly 0.1 or 10%. So you should bet 10% of your bankroll. If you want to try it out check out the latest Rugby betting odds from Youwin and see what percentage of your bankroll you should bet.
An Overall System
There is no system that guarantees a win on a single bet but there are systems which will be profitable in the long run. As long as you’re putting your money on a mixed bag of bets and not simply on bets that have little probability of winning, and betting roughly the same amount every time. The most important thing to remember is that good money management will keep you in the game through the tough times. If you spend £10 a month on bets and gamble conservatively by using 1-2% of your bankroll on each bet, you won’t make huge gains but you will stay disciplined and over time build up an envious bankroll.
While this information is relevant to the UK, it also applies to Australians, however they are better off going somewhere like www.freebookmakerbets.com.au to score bonuses.