What is Money management?
Oct 08,2021 at 03:43 pmBack to Blog
If you want to make money from betting, the first thing you have to master is cost control, or "Money management". As with any business, the most important thing is to determine what your budget is. It is even more important to define the amount of money you are willing to lose, without burdening your everyday life in any way.
Once you have set a budget (a.k.a. “bankroll”) you are ready to start a “more serious war” against bookmakers. Another precondition is being responsible, that is, treatingyour bankroll responsibly and professionally because that’s the only way for you to avoid the "vortex" called bankruptcy.
"Betting is not a sprint, but a marathon"
This mantra applies to many spheres of life, and it is very important to keep that in mind when it comes to betting. This is why money management is very important – it will provide an insight into your betting resources, which will not allow you to go outside of your limits.
If you are not disciplined and want to earn for a vacation or an expensive watch in one day or one weekend, you will make one of the most common betting mistakes.
Only gradual and strategically correct actions will allow you to be proud of yourself in a few months because you will also be part of a group that "makes a living from betting".
Betting is not a burden, but a pleasure
The bankroll must not exceed the amount you are willing to lose. That is why you are obliged to carefully manage your capital.
The moment you start betting with money that was supposed to be spent on something else, it means you have entered a one-way street that can only end in an abyss. The fact that these funds were supposed to have a different purpose will further burden you. You will be more insecure, and you will begin to doubt yourself.
That's why there is Money management –so that you can be aware of how much money you have at any given time and how much you can place on the next bet.
Three key characteristics of Money management
Once you have determined the amount of the bankroll, it is time to get acquainted with the key characteristics of Money management. These include stake, profit, and yield.
The stakeis certainly in the first place, i.e. how much money we invest in an individual bet. Determining the stake amount is very important, and many experienced bookmakers advise that it should not be higher than 3-5% of the total bankroll. Such an approach enables a longer duration of the bank and represents protection against a series of lost bets.
Our goal is to make consecutive wins because that way our bankroll increases and profits increase. Profit growth means that our payments can be higher when betting in the future, which increases the chances that the profit will be higher.
To clarify, the profit is actually your net earnings from each bet paid and it is obtained when you deduct the stake from the gross profit.
Finally, we’ve reached what is known as yield, which is expressed as a percentage. If you have paid €10 on the last 10 bets and the total money you earned is €150, this means that your profit is €150 - (€10*10)=€50.
In that case, your yield is (50/100) *100 = 50%.
You also need to keep track of the number of bets during the month. You shouldn’t play every day and bet on many different competitions and sports. Choosing the two main sports that you follow the most, and within them 2-3 competitions, is quite enough for excellent betting results.
Once you have mastered the basics of money management you are ready to move on to the next level, and that is Surebet betting.
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