While betting on sports is suppose to be fun and an exciting way for you to make money watching the games we love. If you don't manage your budget properly, just like anything else, it can lead you into an expensive hobby.
Trying to become a millionaire betting on sports can lead you and your family into a world of financial trouble. Unless you have endless amounts of cash, you will want to build up the knowledge and money necessary to become a professional sport bettor.
In this article, we're going to walk you through how we at Capper Tools views and applies sports betting bankroll management. While there are many different opinions and advice around this, we choose to take the most simplistic approach.
Why is Money Management in Sports Betting Important
Even if it's not in the sports management forum, you've heard even in grade school that managing your budget is important. The most basic fundamentals to sports betting is finding a platform to bet on, place a bet, and you will need funds to do it. The minute you blow through all your funds, then the even the basics are useless to you.
Money Management is sports betting is all about having your guiding principles in order on a daily, weekly, monthly and yearly basis to know when to quit or how to keep betting. By not having these principles in place, you're likely to bet too emotionally and lose your cash quickly.
There are some key questions that you must have confident answers to:
These are extremely important questions that will allow you to challenging your own thinking as you develop your money management system. Overtime the questions and answers will evolve based on your betting results. But you must start somewhere to get started.
Choosing Your Starting Balance
Your starting point to setting up an efficient money management system in sports betting is know what balance you're going to start with. This simply means carving out a certain amount that is completely separate from your living expenses and savings.
One of the key principles to success in sports betting is wagering with knowledge and not off of emotion. So if you're using money to wager on sports with the goal of paying off debt or you desperately need to money you're wagering to pay bills you're making a huge mistake
The money you're using to wager needs to be completely separate from your living expenses, in the sports betting world this is called your bankroll. This money should be full dedicated to your sports betting activity. Anything money you earn above that bankroll you should look to move that back into your living expenses pool (more on this later).
That brings us to the next key question... how much money should you start out with in your bankroll or money management account? That depends on a few factors.... how much can you afford, how money is your significant other comfortable with and how much are you willing to lose?
The important thing to remember here is this isn't the amount you're going to bet on one game, use in a day or over a weekend. The goal is to sustain this amount, create some wins, and build your cash up.
To ensure that you management this money property move it into a separate bank account, PayPal, or something like CashApp, Venmo, or a Bitcoin account.
What is Bet Sizing?
Sizing your bets is all about determining how much you wager on each game. Full disclosure, we don't apply any sizing system to our wagers rather we determine our bets based on the confidence of our research on each game.
Just like the stock market you need to determine the level of aggression type of bettor you are which is key to the amount of money you will invest. This could play out in the following example below.
Using the $500 bankroll example:
There really isn't a right or wrong approach here as long as you're reverting back to the questions you started out asking yourself. How much am I willing to lose, etc?
Here at Capper Tools, we believe that your bet is only as good as your level of research to ensure you're on the right side of each bet. So regardless if you bet $10, $15 or $20, the approach is still the same.
Our recommendation is that you place more emphasis and time on researching the right side of the bet rather than using that time to developing a bet sizing system. But there is more than enough information out there if you prefer to take that approach.
When to Increase Your Bankroll
It's important that you remain realistic when it comes to sports betting. We all want to make as much money as possible but you must be patient while you're doing it. Sports betting is a long-term approach and not something you will build large amounts of money over night.
Successful or professional bettors (also known as "Sharps"), historically win 54% of their wagers. Great bettors can end up in the 60% range. It's important to point out even they aren't getting their wagers right at an extremely high rate that many may think.
At some point you will hit a win streak where it feels like you can't get a bet wrong. But the law of averages historically proves that you will come back down to earth as well. Your bank roll may start out at $500 but at some point you may feel comfortable to increase that amount.
Here at Capper Tools we take the more conservative approach in that we only increase our bankroll once we've doubled our initial investment. Let's take a look at an example below using the $500 bankroll we've been using in this post:
The overall key here is to stay the course with your original approach to sports betting and managing your budget with the principles you started with.
The Final Point
Just like managing your budget with your personal finances, money management for sports betting isn't the most fun thing to do. In fact it may feel restrictive but we can't emphasize enough that it's important that you take this serious.
There are countless stories out there were families have been ruined by sports bettors not taking this serious and ruining their lives and everyone around them. If you are serious about making some money betting on sports then you must be willing to take the time to do this.
Here at Capper Tools we're where to share useful information about sports betting but most importantly we care about our audience while they do it.
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