3 Money Management Tips for Sports Betting
Good money management strategy is critical to sports betting
Money management is one of the most overlooked areas of good sports betting strategy. All professional bettors have strict money management formulas in place that allow them to weather the storm during a losing period and do well on a hot streak.
The 3 basic concepts of a managing your sportsbook bankroll are:
- Set a maximum you can lose for the season
- Never wager more then 10% for a given weekend
- Use a points system to determine bet size for each event
Set a betting budget
First, you will need to determine your betting budget for the season. This should be the maximum you can afford to lose for the season. Adding money to your bankroll throughout the year is a dangerous strategy that can have you throwing good money after bad. For our example, let’s assume you yet your budget at $2000 for the year. Deposit $2000 to your favorite sportsbook to maximize the “welcome” bonus.
10% rule
Never wager more then 10% of your entire purse on any given week or weekend – this includes playoffs. In our example your budget for the year is $2000, so in the first weekend the maximum you can bet for the entire weekend is $200. The 10% rule is common in investing and other areas that involve money management.
As you win & lose through the season you need to adjust your betting limit each weekend to 10% of your current purse. For example if you win in the first weekend and your purse goes up to $2300 then your budget for the following weekend is $230.
Point System determines bet amounts
Use a simple points system to determine how much to bet on each event. Rate each game you will bet on using a point system. As you select yours bets for the weekend rate each on a scale of 1-5 with 5 being the bet you are most sure about. Your rankings can be based on how reliable your sources are, the track record of each time and other handicapping information.
Let’s assume you have picked 4 games to bet on and have ranked them as follows: 5, 3, 2, 2. Your total points for the weekend are: 5 + 3 + 2 + 2 = 12. Since your budget for the weekend is $200 and you have assigned a total of 12 points for the weekend you can establish a “unit amount” of $200/12 = $16.50.
For each of your bets you multiply this unit amount by the total points assigned to the game to get the amount you should wager. On your first bet your wager amount should be: 5 X $16 = $80. Your second is 3 X $16 = $48 and your third and forth bets should be: 2 X $16 = $32 each. Adding these bets up your total bet for the weekend will be: $80 + $48 + $32 + $32 = $192. Due to rounding this is slightly below your budget.
A few additional tips
Avoid the urge to double & triple up as the season wears on. Stick to the formula and your bankroll will not only last longer but will grow more predictably over time.
Don’t forgot to readjust your weekly budget based on your existing bankroll.
Last, if your “unit” bet amounts fall below $10 then you have assigned too many points for the bankroll you have. Try to be more selective. As a general rule of thumb we recommend keeping your unit amount above $15.
Tags: Handicapping, Money Management, Picks
