What is ‘Money Management’?
In a casino or other such gambling environment, the term money management is used to refer a variety of different strategies or activities. The most common two uses of the term money management refer to a player’s specific betting system, and describe how a bettor manages their finance.
‘Money Management’ Explained
Money management could be used to refer to many different things when used in a casino setting. Some will use the phrase to mean a system of betting, while others might use it to refer to their literal management of money – namely, bankroll supervision.
One such method of betting often used in conjunction with money management is a betting system working on the proviso that the house edge remains constant. Some players, for example, think that by employing a certain betting system, the edge will shift to be in their favour instead of in the casino’s favour. This sort of money management dictates that the player stakes higher wagers when they are winning and lower ones when they are suffering many losses. There are risks involved with this system because of its reliance on the final outcome, not the current state of play.
Another type of money management is finance or bankroll management. The seasoned player will know how to handle their funds in the casino and be able to ensure that they have enough money left to span all their planned casino visits. However, the novice may not be as practiced in money management. Careful planning will allow the player to bet comfortably, sensibly, and responsibly. The player who limits himself in the casino will make their money go further and last longer because there are controlling the sum of money that they are willing to risk.
A more specific sort of money management relates to loss limits and goals for winning. Under this system, the player will restrict themselves to a certain amount of losses before they stop betting, while setting goals relating to the amount of wins they’d like to achieve. This also restricts the player’s betting and helps them to keep track of their money at all times.
Both using common sense and having a strong idea how much money you’d like to spend at the casino on any given day can also help to facilitate good money management.