We should start by prefacing this article by stating that you should be an expert in at least one sport, follow it religiously, be adept with sports analytics such as fantasy, and already be experienced with sports betting before trying to use this as a method of debt reduction.
We should also mention that this isn’t like typical debt reduction tactics such as consolidation, but rather a way to create a secondary income which can be used to pay down any debt owed.
Getting Started
Simulation
The first thing that you’ll need to do is complete a dry run. What does this mean? It means you need to determine whether you can actually make money betting on sports. You need to make an honest assessment of your knowledge and skills. We do this by simulating a full season of betting on a particular sport.
Remember, this is about making enough additional income to pay down your debts, so you have to be straight with yourself. There may be individual sports which you can be profitable betting on and others that, even though you think you are knowledgeable at, you lose at too high of a rate to be a viable source of income. To figure this out, you need to set rules to follow and track everything.
Start by determining a number of bets that you are going to make each day and stick to it; no more, no less. Also, determine how much you are going to bet per game. Whether you are starting in a completely virtual sandbox and not using any money at all, or simply starting small with $1.00 wagers, It helps to use a nice round number for your ‘unit’ amount so that you can better track your profit and loss. Sticking to these numbers you set requires discipline, especially when you go on a winning streak. The natural reaction most people have is to increase the risk amount or the number of bets they are placing. DO NOT FALL INTO THAT MENTAL TRAP. Stick to you.
A sandbox period will also help you refine how you track information and the most effective methods for you to organize the information you are collecting.
Lines shopping
One of the most important aspects of sports betting is often the most frequently overlooked. The difference between winning and losing is a half-point, and if you look at the odds for a particular event from all of the different sportsbooks at one place, like SBR Odds, you’ll see significant differences in the point spreads and prices. So make sure you have at least five accounts at different bookmakers so that you have enough options to get the best line in any given situation. Lines shopping can make the difference between breaking even and making a profit … or making a small profit and making a substantial profit.
It’s Not a Sprint; It’s a Marathon
If you lose your first couple of bets, don’t worry. What you are after is a solid 55% win-rate over the course of the entire season. Let’s say that you determine through your sandbox period that you are winning at a 53%-55% rate. If you invest $5000.00 into your new venture, you’d be earning up to $345.48 dollars a month to pay down your debts. That’s a 7% monthly ROI!
How did we get to that amount of profit? At 55% wins, you are taking in $2545.48 –that is just at the standard bookie rake of -110 per play. Your ROI would go up significantly if you are effectively lines shopping because you’ll win more games and get better prices on others– but you are also losing 45% of the time, which comes to $2200.00 going out. This leaves you with a just under $350.00 in profits per month.
Would that be enough to pay down your debts?