Bankroll is a term from the world of finance, but it has become an important component of the gambling industry and sports betting. Before you place bets on online bookmakers, you should always set aside a certain amount for sports betting. It is a total budget for sports betting. Without solid bankroll management, you will never have long-term betting success. Here are some tips on how to set up a betting budget.

First, you should determine your total budget

So without basic financial planning, it simply won’t work in this case. To set up your betting budget, you first need to determine your general total budget. This involves things like gross/net income, fixed expenses, etc. If you’ve never dealt with this, you can just google it. You can easily record all your income and expenses per month in an Excel spreadsheet. There are also various apps for this, many of which are free to use.

Then you take your own financial situation into account

There are always expenses that are the most important and that determine the quality of our lives. If you have to pay off debts or various payments, you should take care of these first and foremost. And you can spend the remaining balance on things that are not so relevant to rent, food, insurance. Expenses for sports betting are precisely such entertainment costs. You have to set up your betting budget so that this amount does not determine your financial situation.

After losing this amount, you should still have enough money for all important and other expenses. For example, a 2% percentage of the total budget may not be decisive for the total budget. If you lose this amount, you can still maintain your standard of living. And if you lose 10% of the total budget, for example, you will have to resort to savings to pay for something. Then a 10% percentage is clearly too high for a bankroll. One idea, for example, is to use a 1-5% percentage of the total budget as a bankroll for sports betting.

Risk tolerance must also be taken into account

If it is 1 or 5% of the total budget, it should not be too high. A rule of thumb is that bankroll can never be an amount that you cannot afford or can only afford to a limited extent. You can do the following exercise: imagine that you suddenly lose this amount and ask yourself how you feel about it. If the amount is too high, you will of course not feel good.

In addition, you should realistically assess how high your risk tolerance is. So if you are willing to take a higher risk when betting on sports, you should invest more money in the hobby accordingly. If you are risk-averse, you should perhaps reduce the amount. And you should also remain realistic and not exaggerate your own risk tolerance. You don’t want to lose everything anyway. If you are not sure whether you are risk averse or not, you should start with a low-risk approach and see how comfortable you are, etc.

You should adjust your bankroll to your current financial situation

A fixed bankroll does not mean that you cannot check and change it. Now, you do not have to do it too often so that you can stick to a strategy for a certain period of time. For example, you can check your bankroll every month or every three months. Is the amount set too high? Or maybe you want to risk more money? Or is your financial situation different this month? You should always ask regularly and fix your own betting expenses somewhere.