When formulating a winning sports betting strategy, the issue of money will necessarily feature. Turning a profit by doing what we enjoy doing is the reason why we want to win and become good at what we do, after all.
But knowing the difference between incoming money and outgoing money isn’t nearly good enough. This is not to say that only financial gurus who also happen to have an interest in betting on sports will ever be good at managing money in the correct way – far from it! What it does imply is that the way we think about money is important, as is the realisation that there is indeed a right way and a wrong way to think about money.
But what causes us to make “poor” financial decisions in the first place? Below are some of the main culprits.
Emotions: Greed And Fear
Most people experience a gamut of emotions on any given day. We may feel happy about a promotion at work, but at the same time fearful of the impact of having to work additional hours on family life. There’s nothing wrong with experiencing more than one emotion in a matter of minutes. It is our reaction to our daily emotions that determines our quality of life – including how successful we’ll be at a job or a project or just about everything else, including betting on sport.
Emotions known to lead to poor decisions are greed and fear. A good example of this is the stock market. When markets fall, investors often panic and go on a selling frenzy hoping to limit their losses in the short term – without much thought at all to the fact that the fall may be nothing more than a temporary dip. Others may be tempted into investing in get-quick-rich Ponzi schemes, which is of course a classic example of greed.
Succumbing to greed and fear is every bit as damaging to the mindset of the sports bettor as to that of the investor. Learning to channel these emotions in a positive way is crucial.
Poor Money Literacy
It is important to have at least a basic grasp on simple financial concepts – i.e. money management principles.
This is why drawing up a betting budget, and sticking to that budget, is so important. Keeping track of things like budgets and staying within one’s means are life skills often not taught at school or college. The successful sports bettor knows the importance of becoming familiar with basic money management strategies and key financial concepts.
Low Or No Self-Control
In the life of the sports bettor, this one is a biggie. Self-control will mean the difference between long-term success and long-term failure. It’s as simple as that.
The good news is that self-control can be cultivated. Divorcing our mindsets from a culture of impulsivity, bad financial decisions, instant gratification, a refusal to accept a loss and move on, etc., is a choice.
It’s a choice to do everything we can to become savvy about money and spending so that ultimately, we can become successful sports bettors who enjoy betting responsibly.