IT’S TIME FOR 3 EASY WAYS TO USE THE UNIT SYSTEM!
I’m not sure if you’ve ever heard of the unit system, but if you have, you should still continue reading.
The Unit System is an unique Money Management tool that is widely used by different people, businesses and organizations. It’s also used quite a lot in both Poker and Sports Betting. Even gamblers who play slots on casino happens to use the unit system to carefully and methodically manage their bankroll to maximize their winnings and minimize their losses.
Sure, you can’t beat the Casino in the long run. I know. But what you can do is to apply the unit system so that you can manage your funds and have a healthy and sustainable bankroll.
Money Management is just that – a way to manage your funds.
With the unit system, which is one of the available methods, you can learn how to apply control in your life simply by knowing how much money you save, how much money you spend and how much money you have in total.
Below I’ll talk about three easy steps that you can take to use the unit system in your life!
Lets dig in!
1. HOW TO MAKE MONEY WITH THE UNIT SYSTEM
In my previous post I talked a bit about the 5 Proven Steps To Responsible Gambling and in that post I had a specific topic about Money Management.
What I didn’t dive deep into was how you can make money with the system itself. Thinking that you know how to make money is quite easy but really knowing how to make money is a lot harder.
What do I mean by that?
Well, everyone can have that million dollar idea… but not everyone would pursue the idea itself and hunt those millions down.
No, this Money Management method will not help you hunt down that million dollar idea. I might have made a mistake there.
Yes, this method can make you money. It’s proven, multiple times already, by businesses and companies, banks and organizations, sports bettors and poker players. It’s a never ending money making machine really.
However, the system itself, isn’t the one that will make you the money. It’s you, together with the system, that will make the money.
Okay, if you still don’t quite understand I will explain it a bit further.
If we continue this topic about my own experiences from Sports Betting I guess we’d be fine. I do want to be honest after all.
In Sports Betting bettors use the unit system as a Money Management tool. In other words they used the unit system as a staking method.
They transform their bankroll into units by a simple calculation and then they distribute these units according to their predictions.
I used the 1-5 system as my staking method.
It’s the most common system where “1” represents a low investment and “5” represents the maximum investment. The 1-5 scale represents a specific percentage of the bankroll and these percentages is what you use when you bet.
When I found a specific match to place a bet on I did my analysis and if I found a value in that match, I used a “ladder” that I “invented” for myself to know how many units I was going to use.
If a bet had 5% value or less, I’d bet a standard of “2”(2%). If a bet had a value of between 6-7% I’d bet a standard of “3”(3%) and if a bet had a value of 8-9% I’d bet a standard of “4”(4%). If a bet had a value of minimum 10% I’d bet a standard of “5”(5%).
I feel you. However, it’s necessary if you want to understand the full picture.
Now. How is this going to make you money?
Well, simply by following the proceedures of the system.
It’s invented so that you can maximize your winnings and minimize your losses.
Whether it’s within Sports Betting or another area of your expertise, if you’re in a bad session or a bad month, you can let the unit system lower your stakes and help you bet more safely. If you’re in a good session or a good month, you can use the unit system to maximize your winnings simply by your stakes.
One thing that is important though!
You need to know how to find value in your investment.
It doesn’t matter if you’re a poker player, a sports bettor or a financial investment guru. If you can’t find value in your investments, you will lose money in the long run. The only way the system can help you in that scenario is to save your bankroll by lowering the stakes.
The unit system can help you make a lot of money if you have the knowledge of finding value.
All in all…
The unit system for making money is an extremely useful method!
2. HOW TO MAKE A BUDGET WITH THE UNIT SYSTEM
If you didn’t know or realize this already, you can actually make a budget with the unit system. It works the same way as you would do a normal budget, only that instead of counting every penny and dollar, you simply apply percentages instead of actual dollars.
Yes, I know. It might sound tricky.
Don’t worry, I’ll show you a quick example soon…
But before I do, you must know the basics of a budget. I feel that it’s necessary to know that. If you already know this simple procedure you can skip forward.
My book called “Money Management & Dream Catching” also have a good chapter about precisely this topic. You can read it here!
SO… WHAT IS A BUDGET?
A budget is the process of creating a plan to spend your money.
This plan will help you to determine in advance whether you will have the money to do what you want to do or would like to do. Naturally, if you don’t have the money already, the budget can help you proritize your spending and direct your focus towards your goals.
Budgeting will help you ensure that you always have enough money for the things you want to do, whatever that may be.
The theory behind creating a budget requires you to focus on a few categories in order to create a smart budget plan that is sustainable and that works for you.
You will also need to create three main categories which you will use to divide your money. These three categories are called necessary expenses, unneccesary expenses, and the best one – savings.
The necessary category is where you put rent, incurances, loans, food & drinks and the unnecessary category is where you put clothing, cinema visits, lunches & dinners, streaming services and so on.
Savings is where you put the money that’s left after the necessary expenses before you start spending your money. It’s harder to save money from the necessary expenses and therefore you should save a portion of what’s left before you enter the unnecessary expenses category.
Now that we know that… we can continue.
CALCULATING UNITS FOR BUDGETING
Instead of you calculating every penny that you have left and dividing all these amounts into different categories, you can instead use the unit system as a tool. Instead of calculating every penny, you can simply apply percentages to your budget.
Divide your entire income by 100. If you’re in a family, divide the entire familys income by 100.
I make $2500 a month. If I divide that by 100, I get $25. This amount represent 1% of my total income for that specific month. This amount also represent one unit(1% of 100% = $25 of $2500).
That wasn’t so hard was it?
USING UNITS FOR BUDGETING
Finaly, we’re in the category where the action happens.
All you have to do now is to determine where your money is gonna end up.
You have created your categories, you have created your necessary expenses and unnecessary expenses and also realized that you have to put some money into savings.
Good for you!
Now, instead of allocating $500 for rent, $150 for lunches & dinners, $250 for cinema visits and $200 for new clothes you can instead put a fixed number to every event.
For your rent, that would be 20 units, for lunches & dinners we’d allocate 6 units, for cinema visits we have 10 units and for clothing we have 8 units.
Am I the only one thinking this system is a hell of a lot smarter to use instead of having to count each and every penny to get the exact amount for each event or category?
I can’t be the only one.
You can be extremely happy to say that you enjoy having the number 100 to play with every month instead of, for example, 23621.
You can be extremely happy to say that you enjoy having 100 units to allocate into different categories and having complete control over your funds instead of dealing with, and having the need, to calculate each expense and potential savings.
With units, you know from the start the exact amount that you can spend and you don’t have to worry about how much of your own money that you can use at the risk of spending too much.
Use the unit system!
3. HOW TO SAVE MONEY WITH THE UNIT SYSTEM
I guess you have figured this out already but if you haven’t, I’ll tell you.
Saving money with the unit system is smart. It’s also easy.
Every month, we earn an income. A portion of that amount should always go into savings. I’d say that we should try to save at least 10% each month, but that’s not always possible for every individual.
Luckily, if you use the unit system, you can still save some money since you already know where all your money will end up. You have already created the categories, you have already made up each and every known expense and you already know that there is some money left that could be used for saving.
It’s a tool that helps you get a full picture of your finacials. It works wonders together with a budget and it works wonders in Sports Betting.
Instead of having to calculate, or just going with a hunch, on the amount that you’re going to save each month, the unit sytem calculates the exact amount as a percentage and tells you the exact amount that you can save.
All in all…
I’d say that the unit system is a tool that not many people has been taught.
All this while it could probably be the most useful tool in our daily lives.
Make sure that you apply it into your life!