Today, I received the following email from one of my readers:

Dear Buzz,

I’m astounded by your free article on how to win baccarat. However, to complete the system it requires another part such as money management or whatever. Please advise.

Thank you,
Patrick Tuat

I started to answer Patrick with the usual tips and strategies re “Money Management”, when it occurred to me that the truth must be understood. I mean, it’s all well and good to talk about goals, deadlines, bankrolls, progressions etc., but the truth is:

“Money Management” is an over-rated, worthless concept.

Wow! How’s that for controversial?

Let me explain!

Money Management is a term that is bantered about in the Gambling Industry, but is greatly misunderstood.

The concept is very popular in trading, and has found its way into the arsenals of Sports Bettors.

I want to make a bold statement here:

Money Management cannot help you!

You say, “Buzz, you must be kidding! I’m certain that the concept of Money Management is very important.”

Really? Let me ask you these questions:

Will MM make a winner out of a losing proposition?

Will MM turn a negative expectation into a positive one?

Will MM make a smart wager out of a sucker bet?

The answer to all of these questions is NO!

If you’re placing a losing bet, no amount of MM will make you a winner!

All casino games are designed to make you a loser in the long run… ALL of them. So, if you were to use the common MM strategies perfectly, you might be able to last a little longer, but you’ll still lose in the long run.

Let me take this a step further… What if you were to enter the Gamblers’ Utopia; “The First Zero-Advantage Casino” in the World. You’ve found a casino that has removed the house advantages from the games.

Now, what would MM do for you?

Nothing… you’d still break even in the long run!

So, what good is MM?

You’ll be able to play longer! And assuming you don’t alter your optimum play, you’ll therefore get more comps!

The best advice I can give you regarding MM is this: Open a bank account for your gambling bankroll. Put as much money into it as you can without putting ANY strain on your life. Continue depositing money into the account on a monthly basis.

After accumulating a good deal of money in the account (400 times your normal bet at a table game, and/or 10,000 times your slot machine bet), you’re ready to take on the casino (and NOT before)!

Example: if you are a $10 bettor at the tables, then you need to have at least $4,000 in your account. If you play 25¢ slots, and you insert 3 coins at a time, you need $7,500 in your gambling bankroll.

Hang on, the good stuff’s coming…

Leave the money there, gaining interest… and get a line of credit at your casino equal to your betting session amount (one tenth of your bankroll). This way, you’re using the casino’s interest-free loan to gamble, and your money is still in the account gaining interest.

Now it REALLY gets fun…

Calculate the house advantage for your favorite game, and bet LESS than the amount you will earn in interest (PLUS your monthly deposits).

So, if you are playing blackjack at a house advantage of .05%, you expect to lose one bet every two hours. A $10 bettor would expect to lose about $20 every 4 hours of play. Multiply that by the number of times you go to the casino in a month. example: if you go twice a week, you’ll lose $40 per week or about $160 per month.

Therefore, make sure that the monthly amount of money you deposit (add the interest you accumulate PLUS the amount you deposit each month) is MORE than $160. And, for a cushion, round it up to $200.

If you win, put the winnings PLUS your monthly deposit into the account. Continue this until you double your bankroll, then double your bets. (And double your deposits too).

During a winning session, quit while you’re ahead, or put half your winnings aside and continue play with ONLY the remaining half.

Never bet money you need! Scared money NEVER wins! That’s not just a saying – it’s scientifically proven… when you need the money, or are afraid to lose it, you’ll alter your bets and your strategies to the point where you negate the advantages of any strategy.

There you go Patrick, use all the MM tricks and tips you want, but once you realize that you can’t make a purse out of a sow’s ear, turn to the safe gambling methods outlined here, and you’ll always be a Winner.

For more on money management read Guerrilla Gambling by Frank Scoblete

Guerrilla Gambling

Price: $3.95 USD

Lowest used price: $0.65 USD

and Thrifty Gambling by John Brokopp.

Thrifty Gambling

Price: $5.69 USD

Lowest used price: $6.99 USD