Importance of Money Management

One of the most crucial aspects of online gambling is maintaining a healthy bankroll. After all, you wouldn't be able to enjoy the gambling experience at online casinos if you were without money. Because of this, making sure that your bankroll never becomes too low is very important. This may sound simple, but can be difficult for some players who get carried away while gambling.

What is Money Management and Why is it Important?

Mathematically speaking, if anyone plays long enough in a casino on pure luck based games, then he/she will end up losing some amount of money. This is because every game in a casino has some house edge. For instance, one of the most profitable games in a casino - Blackjack - has about 1% house edge. That means that if you play for a long time span, for every $100 that you bet, you will lose $1. Some other casino games, like craps and slots have an even higher house edge.

Because of the house edge you need to use your money cautiously. You can never avoid small losses, but you need to manage your game so that you minimize your losses and keep increasing your bankroll by winning big on a few occasions. The techniques applied by players for doing this are collectively referred to as money management.

If you are not careful about managing your money you may find that after a particular gambling session you are left with no money at all. In fact, there are many instances when players have gone bankrupt because they lost too much while gambling.

Tips for Money Management

Here are a few tips that will help you in making sure that you minimize your monetary losses while gambling.

Establishing a fund solely for gambling: Your bankroll should be separate from the rest of your money. This means that even if you end up losing this money it will not affect your everyday life. Many people use the money for rent payment or the money meant for the tuition fee of their children for gambling. You should realize that online games will always be there and you can wager on them once you have some money in your gambling bankroll.

Understanding your betting limits: Often players with a small bank-roll play at high limits table and end up losing money very quickly. The games you play should be chosen carefully based upon the amount of money that you have.

Learn the games that you play: The best way to minimize your losses is by winning at the games you play. As mentioned above, in the long run you will face certain losses but they will be very minimal if you excel at the games that you play. Games like poker and blackjack are skill based games and by learning the basic strategies, you can greatly increase your chances of winning. Even games like roulette and craps which have a higher house edge will become a lot more beneficial for you if you are aware about the various bets that can be made.

Setting a time limit for playing: Gambling can be quite addictive, especially when you are doing it from the comfort of your home or office. That is why a lot of players end up playing for long durations which in turn is beneficial for the casino. That is why whenever you sit for a session of gambling, put an alarm and make sure that you stop playing when the alarm rings, irrespective of whether you were winning or losing at that time.

Never play when you are tired: Playing when tired is never good for your bankroll. Your decision making abilities do not work properly when you are fatigued and this can lead to a string of losses. As soon as you feel any sign of boredom or fatigue, like making rash bets, then you should stop playing.

Keep the odds in mind: Many players when on a winning streak, start increasing their bets as they feel that they would win. Always keep in mind that the odds of your winning are the same every time you start a game. If you won the last game, the odds of winning the next one do not increase.

Never try to play catch-up: When you lose money while gambling, there is a tendency to play the one extra game in order to recover the lost money. This means increasing your bet for the next game. Playing catch up should be avoided at all costs, and you should play a game after losing keeping the odds and normal strategy in mind.