New or not to sports betting, you should already know by now that bankroll management is essential. Well, maybe not exactly the case if you’re placing bets for pure fun, but if you’re serious about turning those bets into profits, then you’ll want to manage your bankroll efficiently.

Don’t worry. You don’t have to be a finance expert to handle this. Yes, no need to hire anybody to take care of this for you too. Unless, of course, things get to the next level, but let’s not go there just yet.

Setting a Budget and Sticking To It

The first rule of bankroll management is simple: set a dedicated budget for sports betting and avoid using funds earmarked for other essential expenses. Sounds cliché, for sure, but this is something many would ignore.

Some bettors would have a separate account for their online gambling activities That may sound like a lot to some, but just think of it as getting a business account. It’ll be easier for you to track how much you’ve already spent and avoid spending money not meant to be gambled.

Unit Sizing: The Key to Consistency

Unit sizing is the bedrock of disciplined bankroll management. This is dividing your total bankroll into smaller, manageable units that represent a standardized portion of your funds.

A common recommendation is to bet between 1% to 5% of your bankroll per unit, with a specific percentage depending on your individual risk tolerance and betting style. Conservative bettors might opt for smaller units, while those comfortable with higher volatility might choose larger ones. 

Either approach can bring a sense of order and control to your betting as it could prevent you from placing overly large or impulsive wagers that could jeopardize your entire bankroll.

Think of each unit as a building block in your betting strategy. By consistently wagering a predetermined unit size, you create a sense of rhythm and avoid the emotional rollercoaster of fluctuating bet amounts. 

This consistency helps you weather losing streaks without succumbing to panic or desperation, and it allows you to capitalize on winning streaks without becoming overconfident.

Tracking and ROI

If you’ve placed bets before, especially online, then you know that you can easily review your betting slips. They are not just there as a sort of payment history in your banking account. 

Make your betting history a frequent section of your betting account. Treat it like a financial journal that could reveal patterns, strengths, weaknesses, and areas for improvement. 

Are there specific scenarios where you tend to make poor decisions? Are you chasing losses or letting emotions dictate your bets? By honestly assessing your performance, you can refine your strategy, capitalize on your strengths, and mitigate your weaknesses.

Your betting log can also help you track your ROI (Return on Investment) easily. Speaking of which, to calculate your ROI, you need to focus on your total winnings and losses. You can do this on a weekly, monthly, or quarterly basis. 

Here’s the formula you can follow:

ROI = (Net Profit / Total Investment) x 100

Where:

• Net Profit = Total Winnings – Total Losses
• Total Investment = The total amount of money you’ve wagered

A positive ROI indicates that you’re making a profit, while a negative ROI means you’re losing money. Tracking your ROI over time allows you to gauge your progress, identify trends, and make informed adjustments to your betting strategies.  

Betting Strategies That Could Help With Your Bankroll Management

There are also betting strategies that you can implement to make it easier to manage your bankroll. We’re not just talking about looking into gambling predictions to perform live betting. Here are some of the common strategies you might want to consider:

Flat Betting 

Flat betting is arguably the simplest bankroll management strategy in sports betting. In essence, it involves wagering the same amount on every bet, regardless of the odds, your perceived edge, or your confidence level in the outcome.

Percentage Betting

Percentage betting is a more dynamic strategy that involves wagering a fixed percentage of your total bankroll on each bet. As your bankroll grows or shrinks, your bet size adjusts accordingly.

Confidence Betting

This strategy takes percentage betting a step further by factoring in your confidence level for each bet. 

You assign a confidence rating to each wager and adjust your bet size accordingly. This encourages thoughtful analysis and discourages impulsive betting on low-confidence picks, but it’s of course, only ideal for those who are knowledgeable on the sports they’re betting on.

Conclusion

Remember, bankroll management is an ongoing process. It requires discipline, patience, and a willingness to adapt your approach as needed. So, the next time you log in to your betting account or review your betting slips, look at them with fresh eyes so you can manage your bankroll more efficiently.