Chapter 2 SETTING AND BUILDING YOUR BANKROLL
Don’t Spend It All in One Place (or on One Sunday)
There’s no time like pro football season at a sports book. Because each team plays only 16 regular- season contests, every game is an event. You can feel the buildup during the week, culminating on Sunday, when there are usually 15 games on tap, oftentimes as many as 11 “early games” kicking off at once, at 1 p.m. Eastern Standard Time.
When I was managing the sports book at the Desert Inn Casino, the first few Sundays of the NFL season were always standing room only. There was electricity in the air. The bets came fast and furious. Invariably, however, by Weeks 4, 5 and 6, the crowds had thinned by 60%. And those who remained were playing more conservatively. Bettors who had been laying $500 a game were now agonizing over their wagers and risking just $100 a game.
Needless to say, the football fans that disappeared altogether after the first few weeks had blown their entire Bankrolls. And practically the only money-management technique the last men standing were using was to bet less, but of course they were doing this only because they had less in their pockets.
By neglecting to set a Bankroll or use a money-management strategy, both those groups had not only ruined their chances at making money over the long haul, but they’d sapped all the fun out of following the football season as fans and gamblers. Much like it is for the players on the field, gamblers know it’s no fun sitting on the sidelines, or playing catch-up for most of the season.
To begin making consistent money as a regular gambler, you must first set your “Personal Betting Bankroll,” to ensure that the occasional serious losing streak won’t knock you entirely out of the game. Before you can determine your Personal Betting Bankroll, it’s a good idea to evaluate your personal finances as a whole.
Grin and ‘Bare’ Your Monthly Budget
If you can honestly say you know, without having to check your personal records, exactly how much money you have left over each month after all your living expenses are paid, you are exactly the kind of person who will do wonderfully as a disciplined gambler. Congratulate yourself and move down to the next section, where you’ll set your Personal Betting Bankroll.
However, if you have no idea how much money you have going out each month for all your personal bills, don’t be discouraged. You’ve got plenty of company. You’d be surprised how many people -- even extremely wealthy ones -- have never sat down and drawn up a personal budget. In a way, they’re like gamblers who use no money-management technique. They live week to week, paycheck to paycheck, spending as urges and whims come and go, content not to know the potentially scary truth of their financial situation as long as there is some money in the bank and room on their credit cards.
Because my 12 Money-Management Programs are all based on financial discipline, let’s quickly determine your monthly budget so you’ll know how much of a beginning Bankroll you have to play with. It takes only about 15 minutes -- whether you’re one of the middle-class masses or a multimillionaire -- and it can only help your personal and gambling life to know exactly where you stand financially.
To complete your personal budget, fill in the Chart at the end of this chapter. Simply write in dollar amounts next to each of the monthly budget categories, making sure they’re all accurate monthly figures. For instance, if you spend $125 a week on groceries and dining out, make sure you put $500 in that category, assuming a 4-week month. Also, if you have expenses such as taxes or insurance that you pay quarterly or yearly, don’t forget to divide them by the number of months in the quarter or year, and then include them as well as monthly expenses, so you don’t come up short when those bills come due. Note that if any of your expenses are taken out of your paycheck before you receive it, don’t deduct them. We’re trying to determine your monthly “Total Disposable Income,” or what’s left of your paycheck after you pay all of life’s “little” essentials.
When the Chart is filled out, you’ll be able to subtract your combined monthly expenses from your monthly income and be left with your Total Disposable Income.
Betting a Safe and Secure Bankroll
Whether you’ve just outlined your personal budget for the first time or knew all along where all your dollars and cents were going each month, you’re now able to set your Personal Betting Bankroll.
Take a look at your monthly Total Disposable Income, the amount left over after you’ve paid all the items on your personal budget -- from the mortgage to the car payment to the kids’ college fund. Now take that dollar figure and cut it by 50%. If you have that dollar figure right now in your dresser drawer, your savings account or your wallet, whether it’s $200 or $20,000, you’ve established a good, safe amount for your beginning Personal Betting Bankroll. 1 month’s Total Disposable Income divided by 2 = your Personal Betting Bankroll.
What’s the remaining 50% for, you ask? The unexpected. The last thing you want to do is risk losing the money needed to take care of life’s little emergencies -- like car repairs and unexpected doctor’s bills -- because the Knicks end up losing to the Celtics.
If you don’t have half a month’s Total Disposable Income available right now to start betting with, divide it in half again, which should give you one week’s pay -- after all your personal expenses -- and make this number your Personal Betting Bankroll. That way, you can keep reading and be ready to bet safely and responsibly after you cash your next paycheck and pay all your bills, using just 25% of your Total Disposable Income.
Saving for a Rainy Day at the Sports Book
Now that you’ve set your Personal Betting Bankroll, put it safely aside either at home or in a bank account (if you’re betting with your local neighborhood bookie), or in 1 or more reputable online sports book accounts (if you’re betting on the Web).
As you’ve undoubtedly gathered by now, my entire approach toward helping you make money via sports betting is to have you gamble smartly, conservatively and according to my 12 Money- Management Programs, which utilize proven mathematical certainties to help steadily build your Bankroll. In keeping with this, I am going to have you take your Personal Betting Bankroll and divide it evenly into 4 equal “Betting Blocks.” For example, if you’re starting with a Personal Betting Bankroll of $1,600 (based on a portion of your Total Disposable Income), break it into 4 equal Betting Blocks of $400 each. $1,600 Personal Betting Bankroll divided by 4 = Betting Blocks of $400 each.
Rather than risk your entire Bankroll right off the bat, you’ll begin putting a calculated portion of your $400 Betting Blocks on each bet. These bets are hereafter referred to as “Series Amounts,” since all my Programs provide preset “Series,” or a specific number of wagers, for you to make.
Divvying up your Personal Betting Bankroll into Betting Blocks from which you’ll set your Series and Series Amounts prevents you from ever losing everything during an unfortunate losing streak. Knowing that you have substantial “reserves” in your Bankroll, and that you must only win as few as 1 in 8 parlays and slightly better than 1 in 4 straight bets in a Series to make a profit with my 12 Money-Management Programs, you’ll bet calmly, with a clear head.
Of course, just because I have selected $1,600 as a possible beginning Bankroll and $400 as the natural Betting Blocks for this Bankroll doesn’t mean you should automatically set your Bankroll and Betting Blocks at these amounts.
Your budget may warrant a lower or higher Bankroll and Betting Blocks, which you should set according to the budget and monthly Total Disposable Income numbers you’ve determined for your own specific financial situation.
For consistency in betting examples throughout this book, however, I always will be using $1,600 as a Personal Betting Bankroll and $400 as Betting Blocks. I’ll also be setting your betting “Series,” the preset number of wagers in any given System, and your “Series Amounts,” the dollar figure you’ll wager, precisely so that you’re “guaranteed” to make a profit and protect your Bankroll by picking a reasonable amount of winners.
Don’t Lose Sleep or Your Bankroll
To show you why it’s so important to both set a reasonable Personal Betting Bankroll and to divide it up into 4 equal Betting Blocks, let’s take a peek ahead at Program #1, The 2-6 Straight Bet System.
The 2-6 Straight Bet System requires that you win a minimum of just 2 wagers in every 6 bets made in a Series, and pre-calculates your “Series” of wagers at $11, $22, $44, $66, $88 and $132. In other words, your “Series Amounts,” or the dollar figure you will be wagering or attempting to win, will be 11-22-44-66-88-132.
Don’t be alarmed if this doesn’t make complete sense to you right now. It will next chapter, when I go into full detail about how Program #1, the 2-6 System, makes you steady profits if you win just 33% of your wagers. For the moment, however, I’m interested only in your understanding how dividing up your Personal Betting Bankroll into Betting Blocks prevents you from losing everything.
Say, for example, you make 1 bet a day for 6 days utilizing Program #1 and have a horribly unlucky week, losing all 6 wagers. (Remember, your Goal is to win at least 2 of every 6 bets.) By going 0-6, you lose a total of $363 -- but since you’ve set your Personal Betting Bankroll at $1,600 and your Betting Blocks at $400, you’ve still got more than 75% of your original Bankroll left to win your way out of the slump.
It’s important to understand that, unlike stupidly “chasing your losses” with huge bets, my 12 Money-Management Programs use mathematical “Formulas” based on easy-to-hit minimum winning percentages to ensure that you steadily recoup your losses, and then some.
Watch as Your Bankroll Builds
Rather than merely “protecting” your Bankroll, my 12 Money-Management Programs have been designed to build on it steadily and consistently. Assuming you can hit 26% or more winners on straight bets or 12% or better on 2-team parlays, you’ll see your Bankroll growing in no time. Using the example of a $1,600 Personal Betting Bankroll above, when you have won enough to roll $400 in winnings back into your Bankroll, it will then be worth $2,000. At that point, you will divide it into 4 equal Betting Blocks of $500 each.
This way, you can start wagering a little more on your plays. For example, The 2-6 Straight Bet System that began with a betting Series of 11-22-44-66-88-132 which increases when your Betting Blocks move from $400 to $500 to a betting Series of 22-44-88-132-176-264, which once again allows for substantial profits while risking relatively little, even if you go on the occasional 0-6 losing streak.
I suggest that you take no money out of your Personal Betting Bankroll for the first year. That way, it increases substantially and you will be making big bets -- and big profits. Of course, there’s no reason you must raise the amount of your Betting Blocks or can’t “withdraw” profits from your Personal Betting Bankroll as it grows. You can reward yourself by dipping into some of your winnings, keeping your original Personal Betting Bankroll amount the same. Or, whenever you feel comfortable with my Programs, you can increase your Betting Blocks -- and your expected profits.
If you do raise your Betting Blocks to $500 each and steadily make winning bets that double that amount, then your Personal Betting Bankroll will now be worth $2,500, and you can divide your 4 Betting Blocks into $625 each. At that point, you’ll likely want to increase your betting Series as well to 44-88-176-264-352-528.
Just as you increase the amount of your Betting Blocks when you double your money, if you happen to lose an entire 6-bet Series, simply divide the resulting Personal Betting Bankroll total by 4 and set up a new Betting Block amount with new Series Amounts.
For example, if you had a Betting Block of $625 and lost 6 consecutive bets, your Personal Betting Bankroll would then be $1,875 and you’d have 4 equal Betting Blocks of about $470 each. With that total, you would want to drop your Series back to 22-44-88-132-176-264.
Summing It All Up
Setting and building on your Personal Betting Bankroll is as easy as 1-2-3-4-5: 1) Determine your Personal Betting Bankroll, making sure that it is no more than 25% to 50% of a single month’s Total Disposable Income.
2) Divide your Personal Betting Bankroll into 4 equal Betting Blocks.
3) Bet just a portion of any Betting Block on any single wager, using Series Amounts dictated by my 12 Money-Management Programs and their Formulas.
4) Roll all your winnings back into your Personal Betting Bankroll, so it builds steadily.
5)Every month or so, evaluate your Personal Betting Bankroll, and increase your 4 Betting Blocks if you feel comfortable doing so.
Now that you’ve set your initial Personal Betting Bankroll and the dollar total of your 4 Betting Blocks, it’s time to become intimately acquainted with my 12 Money-Management Programs.
Once you decide which of my 12 ways to beat your bookie you like the most, you can start making winning wagers, and build your Bankroll.
PERSONAL BUDGET (MONTHLY)
MONTHLY INCOME MONTHLY AMOUNT or sum
Take-Home Pay (After Taxes) = $
All Other Income (Government, Family and Investments) + $
A) TOTAL MONTHLY INCOME = $
MONTHLY EXPENSES HOME MONTHLY AMOUNT Total Rent(s) and/or Mortgage(s) $ Second Mortgage(s) $ Property Taxes $ Utility Bills (Electric, Gas, etc.) $ Home Maintenance and Repairs (Gardening, etc.) $ TVs and Computers (Cable, Satellite, DSL, etc.) $ Telephones (Home and Cellular) $ Renter’s or Homeowner’s Insurance $ B) HOME SUBTOTAL = $ HEALTH AND CHILDREN Healthcare (Insurance, Doctor’s Visits, Medicines, etc.) $ Childcare (Centers, Babysitters, Diapers, etc.) $ C) HEALTH & CHILDREN SUBTOTAL = $ SCHOOLING Tuitions (For Entire Family) $ School Loan(s) Payments $ D) SCHOOLING SUBTOTAL = $ CAR AND OTHER VEHICLES Vehicle Payments (All Loans and/or Leases) $ Insurance Payments (For All Vehicles) $ Fuel (Gas, Diesel, etc.) $ Repairs/Service (Tires, Tune-ups, Oil Changes, etc.) $ Public Transportation (Bus, Taxis, etc.) $ E) VEHICLES SUBTOTAL = $ FOOD Groceries $ Dining Out $ F) FOOD SUBTOTAL = $ ENTERTAINMENT AND INCIDENTALS Entertainment (Movies, Nightclubs, etc.) $ Travel (Getaways and Vacations, etc.) $ Publications (Papers, Magazines, Books) $ Miscellaneous Spending Money $ G) ENTERTAINMENT SUBTOTAL = $ FINANCIAL Deposits to Accounts (Savings, Money Market, etc.) $ Other Investments (Stocks, bonds, etc.) $ Donations (Charitable, Religious, etc.) $ Personal Loans (not previously listed) $ *Credit Card Payments (Total of all cards) $ H) FINANCIAL SUBTOTAL $ PROFESSIONAL Legal Expenses $ Accounting Expenses $ I) PROFESSIONAL SUBTOTAL= $ OTHER Miscellaneous Expenses (Emergency Fund, etc.) $ J) MISCELLANEOUS SUBTOTAL= $
DETERMINING YOUR TOTAL DISPOSABLE INCOME (MONTHLY)
Now that you’ve calculated all your monthly income and expenses, it’s a matter of simple subtraction to determine your Total Disposable Income. Use the subtotals from above to subtract all your monthly expenses from your total monthly income.
A) TOTAL MONTHLY INCOME $
B) MONTHLY HOME SUBTOTAL -$
C) MONTHLY HEALTH/CHILDREN SUBTOTAL -$
D) MONTHLY SCHOOLING SUBTOTAL -$
E) MONTHLY VEHICLES SUBTOTAL -$
F) MONTHLY FOOD SUBTOTAL -$
G) MONTHLY ENTERTAINMENT SUBTOTAL -$
H) MONTHLY FINANCIAL SUBTOTAL -$
I) TOTAL PROFESSIONAL SUBTOTAL -$
J) MONTHLY MISCELLANEOUS SUBTOTAL -$
TOTAL DISPOSABLE INCOME (MONTHLY) =$
Note that for our purposes, you are going to take no more than 25% to 50% of your personal Total Disposable Income figure above and use it for your Personal Betting Bankroll. Read more about this in Chapter 2.
I'm really excited about this opportunity to begin introducing a few of you to the lucrative world of "Sports Investing" and hope to show the rest, at the least how to avoid a few pitfalls of sports gambling.