Most of us have had a little gamble at some point in our lives. Perhaps you have bet on your football team winning a match. Or maybe you visited Vegas and just wanted to sample what’s on offer in the gaming halls because you thought you should. All these things are OK as a bit of fun. Some people however take things far more seriously and become hooked on the thrill of betting. If you are even considering joining them then you need to understand that money management when betting is vital.
Are you ready to lose all of your money? Of course not. And that’s why money management when betting is so important. So, what’s this phrase “money management” all about anyway? It’s the way of managing your money, and time, better for more profits and reducing your risk of loss.
We looked at Forex trading in a previous article and highlighted that the first rule is that you should never risk money that you can’t afford to see disappear. This is even more important when gambling because it is dependent on luck. At least if you are trading markets you can research and analyze to reduce your risk of loss significantly.
When you are relying on Lady Luck to help you then it is vital you bet responsibly. Money management is an important part of this.
What Is Money Management When Betting Responsibly?
The field of money management goes well beyond the simple stuff here, but this beginner’s guide to money management when betting will hopefully give you cause for thought.
In layman’s terms, money management simply means keeping track of what you’re spending and what you can afford to risk. It’s like when you go to do your grocery shopping, do you plan in advance what you will buy. We looked at how to create a budget in another article.
It’s the same idea when you are betting on something. You should work on the assumption that you may lose. Obviously you can sometimes use statistics to calculate the expected outcome but it is never guaranteed. A toss of a coin gives you a 50:50 chance of being right but just because it has come down heads 3 times in a row doesn’t alter the fact that the 4th outcome is still 50:50.
Set Aside Money
Before engaging in any gaming entertainment you should set aside an amount of money for your fun. This is the maximum amount of money you’re willing to spend. If the moment comes when it’s gone, you’re done for that day.
When you set aside money like this, it’s traditionally called a bankroll. Your bankroll should be for just gambling and not other activities, such as eating, seeing movies, and so on. This all forms part of setting your budget above. Make sure you have covered your essentials before deciding what to allocate to your bankroll for gambling.
Betting Within Limits
Now that you have your bankroll, you can clearly see-at any time-how much money you have to play with. With this insight, you can bet appropriately.
If your bankroll is $100, you wouldn’t want to walk up to the Blackjack table and play $25 hands. There’s no hard and fast rule for bet sizing off a bankroll. I think you need to think about how long you want to try and play.
For the typical player that’s looking for up to a couple of hours of fun, try to divide your bankroll by at least 20 for table games. So, if you have a $100 bankroll, risk no more than $5 per hand. As your bankroll increases, bet more if you wish.
The Overall Goal
Managing your money in this fashion will help you enjoy your experience more and you’ll be more fiscally responsible. Most people who walk away big losers do so because they didn’t know when to stop. Do not get sucked in to chasing previous losses by increasing your stake.
By setting your bankroll ahead of time, you will know when to stop. If you find you are developing a problem with knowing when to stop then seek help. There are organizations that can help you cure a gambling addiction.
Every professional gambler in the world knows about money management when betting and uses it to some degree. Even if you only gamble once in a blue moon, it’s good for you to at least know the basics. Having a little flutter can be fun provided you bet responsibly and do not exceed your own limits.