The most successful sports bettors know how to manage their bankrolls effectively over the course of the year. Read on to learn what a bankroll is, how to manage it, and why it is important.
What is Bankroll Management?
A bankroll is a sum of money that you set aside for sports betting over a specific period of time, such as a season or a calendar year.
It should be money that you can afford to lose in a worst-case situation. It should not be money you need for bills, rent, childcare, groceries, and so on, and it should not be borrowed money either.
Bankroll management is the art of utilizing this sum of money effectively over a prolonged period.
How Should I Manage My Bankroll?
Most successful bettors start out by wagering a specific percentage of their bankroll on each bet. It could be 1% if you are feeling cautious, or 5% if you are following a bolder strategy.
Many bettors opt for 3%. For example, if you have $2,000 to play with for an NFL season, and you make 3% of the bankroll your base unit, you will start out by placing $60 wagers in Week 1.
You can then keep wagering 3% over the course of the season. If you are winning, your bankroll grows, and the size of your bets increases accordingly. For example, if you win $500 in Week 1, your bankroll will be $2,500. In Week 2, you would be betting $75 on each game you are interested in.
If you suffer losses, and your bankroll shrinks, your bet sizes will decrease. This helps you stay in the game long enough to build your bankroll back up again.
You can alternatively keep betting the same amount throughout the year, or you can follow advanced bankroll management strategies like the Martingale, the Fibonacci, or the Paroli, which can be used if you are betting on football and basketball sides and totals.
