Important Lessons You Can Learn From Sports Betting

Sports Betting Lessons

The only thing more fun than watching the sport that you love is placing a wager on your favorite team. It adds to the excitement of the event. In fact, it makes you feel even more involved in the game! Whether you like to place occasional wagers on your team or are a more serious bettor, there are some things you can do to improve your odds. After all, when your money is at stake, you need to be a little bit more careful about how you place your bets.

If you want to give yourself a better chance at coming out on top, here is what you need to do:

Choose a Sport That You Are Interested In

This may go without saying but it is an important reminder for those who are only betting for strictly financial purposes. Now, you may be wondering why this even matters if you are only interested in making money. Well, it is easier for you to understand the ins and outs of a sport that you actually care about. This means that the analysis that you conduct on the sport is more likely to have a higher level of accuracy. For the sake of argument, let’s imagine that one of the easiest sports to bet on is basketball. However, if you can’t stand to watch the sport let alone pay attention to the statistics, you’re going to find it quite difficult to process any information. Each time you have to crunch the numbers, you are going to find it an absolute bore.

Manage Your Money

There is no getting around it – betting is gambling. Which means that there is always a chance that you will lose some money. To avoid losing more than you can afford, you need to come up with a money management system. This is particularly important if you plan on placing wagers frequently. The system that you come up with depends on how much money you are willing to spend – and lose – at any given moment. Set aside a particular amount to bet with. Of this sum, make sure to only spend a small percentage on any given wager. You should never blow all of your money on one bet, regardless of how certain you are of your victory.

Do Your Research

Although you may not realize it, mathematics plays a large role in sports. Regardless of the sport, each league, association, and team compile an incredible amount of information on games, players, and much more. This is because a large portion of sports can be boiled down to statistics and percentages. By paying attention to these numbers, you can actually predict a particular outcome with greater accuracy. Don’t let emotion or intuition get in the way and instead focus on concrete evidence.

The Importance of Documentation and Evolution

The key to consistent wins (and profits) is to note down everything. This includes all of the research that you have done on the sport as well as your own track record. Keep a record of every wager that you have ever made including the specifications of the bet. Make sure that you incorporate whether you won or lost the bet and if possible, make notes of any mistakes that you may have made. Doing so helps you to see what you are doing right as well as the errors that you are making. In turn, this helps you to improve your strategy and the bets that you place. It is a continuous learning process and the more you know, the better equipped you are to evolve. This simply means more money for you.

These are the most important lessons that you can learn regarding sports betting. Follow these guidelines and you should find yourself quite successful.

The Peyton Manning Story: A few days short of that big bonus!

Peyton Manning, Peyton, Manning, Compounding, compound interest, analysis

Peyton Manning – Franchise Quarterback of the Indianapolis Colts is a free agent.  I am not a regular follower of football but I have heard who this gent is.  Potentially the best quarterback to ever play in Indy or maybe best quarterback ever in all of football.  This article isn’t going to talk about all those statistics that he has amassed, but we really could because finance covers stats and various ratios.  If he was on the roster at the start of the league year he was to be owed $28 million dollars as a bonus.  Did you hear that right, a BONUS!!!

I don’t know if you have been over to see J. Money at Budgets Are Sexy.  If you are over there check out his Million Dollar Club and Millionaire To-Do List.  J asks the rhetorical question, ever dream of being a millionaire.  Sure who hasn’t! Many of us work our life time to have amassed a nest egg upwards of a million dollars to retire comfortably and enjoy the company of our companion. 

If I am striving to have a million dollar nest egg by the time I retire, Peyton Manning just missed out on a bonus of 28 times that by a few days had the Colts kept him on board.  How much would Peyton have if he invested that $28 million with a 7% growth every year for 20 years?  He wants to retire early like many of us in the personal finance blogging world.  For the sake of this we will not consider inflation, because he didn’t get the money so this is hypothetical.  Obviously, if he were doing this analysis he would consider inflation because a dollar today is not that same as a dollar tomorrow.

Money Invested: $28,000,000

Years to grow (retirement): 20

Appreciation/Growth rate: 7%

In 2032, Peyton is going to have a whopping $108,351,164.95.

I hope to have a figure like that if you move the comma two places to the left. 

The magical secret to this formula is the finance principle of compounding.  Basically compounding is making more money on the money that you have already made.  I have a dollar that I invest in year one, after year two I have 2 dollars.  I keep those 2 dollars in there and invest the 2 dollars.  You are making the money that you earned work for you, through this principle of compounding.

 

 PHOTO BY: Angie Six