Money management has become crucial to every UK citizen in such uncertain social and political times. So, people are searching all over to find the best money management methods. Some opt for savings accounts, others see what they can find in investments, but perhaps the most interesting scene to look to is that of professional gambling.
The flow and use of money are even more important to professional gamblers than most regular folk as the only way for them to make money is to spend money. As such, they have to exercise an even greater degree of caution when looking to spend cash, as well as be all-but-certain of their attempts at making more money. As such, the everyday UK money manager can learn some lessons from their extreme measures.
As you would assume, there is an element of risk with every single bet placed in a casino. Regardless of your skill of the game, your knowledge, or your strategy, the house edge means that there is a slight unbalance so that, over an extended period of time, the casino business can make money. Of course, professional gamblers play to be the ones who take the big score.
Easily the most important aspect considered and balanced by professional gamblers is the house edge and how they can lessen its impact. It’s a form of risk management, and it’s why you’ll rarely see a professional gambler at the double-zero American roulette table. Introduced in 1842 by the Blanc brothers, the single-zero version of roulette (which European and French roulette is based on) has a smaller house edge than its American variant.
Preparing for investments turning sour
Anyone who goes all-in with every cent on an investment is widely considered to be foolhardy, for if the investment fails, the investor loses everything. You can see everywhere that no one bets their whole stack in the casino – with the exception of poker players when the occasion calls for such measures. Even the British government is putting £2.1 billion extra aside for no-deal planning, just in case.
Of course, there’s always a chance that investments will go sour or a gamble won’t pay off, so the professional gambler learns their trade inside out to the fullest potential. Those who decide to base their play around roulette will invariably use the best resources to learn how to play roulette before putting a chip down, and those who want to make money from slots will research the RTP percentages and volatility of games.
Segmenting the bankroll
Bankroll management is fundamental to professional gambling, mainly because the activity is so stooped in superstition. Gamblers know that a time will present itself when they’re on a hot streak and they’ll be tempted to bet more of their bankroll. To avoid such situations, they segment their bankroll, only taking to a casino the amount that they want to spend that evening, without any other means of withdrawing cash.
This can be a great skill to integrate into everyday life, especially shopping. By only taking enough money that you can or want to spend, you’ll be much more cautious about what you put in your basket and what you buy. The technique of segmenting one’s bankroll can be especially effective to stave off the impact that being hungry has on your spending.
Draw from the methods of professional gambler: exercise risk management at all times, don’t put all of your eggs in one basket, learn everything that there is to know about the field, and utilise the benefits of segmenting your bankroll.