Proper money management is key to long-term successful horse race betting. If you’re serious about your betting, don’t mix it with your private finances willy nilly.
When you start out, decide how much money that will be transferred from your paycheck to your betting bankroll each month. It can be a fixed amount or a percentage of each individual pay check.
You must also determine when and how you will permit yourself to take money out of your bankroll. Of course, the goal for most punters is to make enough money on horse races to be able to improve their lifestyle. But if you’re constantly taking money out of your betting bankroll based on whims and wants, you are setting yourself up for failure. The reason for this is threefold:
- You need a betting bankroll that is large enough to sustain you through rough patches. No matter how skilled you are, you will encounter “bad beats”. Prepare in advance by having a large enough betting bankroll.
- A growing bankroll that isn’t robbed by you will make it possible for you to take your horse race betting to new levels, e.g. by betting on more races or making larger wagers. If you’re constantly robbing your piggy bank as soon as it begins to swell, you are limiting yourself and keeping your self from moving on to the next stage with your betting.
- Taking money out of your betting bankroll to pay for private expenses blurs the line between your betting and your private economy. If you used betting money to pay for private expenses this month, you might be tempted to use private money for your wagers next month. This can quickly escalate into a very bad situation where you are wagering money that you can’t really afford to lose.
If you are so strapped for cash that you regularly need to take money out of your betting bankroll to pay for private expenses, there is something wrong with the setup. Maybe you are betting on a level that is to high in relation to your income? Maybe you need to cut back on personal expenses to give horse race betting a serious go? Maybe your financial situation is so precarious that you really shouldn’t be making wagers right now? Be honest with yourself and cut out the bullshit excuses.
You betting bankroll is not your emergency fund. You need to have a separate emergency fund for emergencies, and if you can’t afford to set up a separate emergency fund for yourself you really shouldn’t be betting at all.
One of the great advantages of having a designated bankroll used for horse race betting only is that you will be able to make more rational decisions. You will no longer think about the money as something that you could use to pay for a night out or buy a new computer with; it will be money that has already been devoted to horse race betting and that is no longer a part of your general budget. If making a big wager is what you have, rationally, decided is the right thing to do in a specific situation, you can do this guilt-free without feeling that the money should be used for something else. You are only betting with money that you can afford to lose.
With a designated bankroll, you can follow a strategy rather than bet on a whim. You can set up a system that is designed to fit your bankroll and adhere to it long-term. Your betting will be based more on skill and determination, and less on luck and emotions.