The Golden Rule of gambling is: “Only bet what you can afford to lose.” But without a clear financial plan, “affordability” is just a vague feeling.
This Affordability Calculator brings clarity to your finances. It calculates your Disposable Income by subtracting your essential living costs from your net salary, helping you set scientifically safe Deposit Limits.
How to Calculate a Safe Budget
Gambling should be treated as an entertainment expense, just like buying movie tickets or eating out. It should never compete with your bills.
- Net Income: Your take-home pay after taxes.
- Fixed Costs: Rent, Mortgage, Utilities, Debt payments. These are non-negotiable.
- Living Costs: Food, Transport, Groceries.
- Savings Goal: We recommend saving at least 20% of your disposable income before allocating a cent to gambling.
- Result: The remaining amount is your “Safe Budget.” This is the maximum amount you can deposit without impacting your lifestyle.
Example: The “Disposable” Trap
You earn $3,000 and have $2,000 in bills. You think you have $1,000 to gamble.
Wrong. You still need to eat, travel, and save for emergencies. After deducting food ($400) and savings ($200), your safe gambling budget is actually $400, not $1,000. Ignoring these hidden costs is the primary cause of gambling debt.
Frequently Asked Questions (FAQ)
What is a healthy percentage of income to gamble?
Financial advisors suggest that “Fun Money” (which includes gambling, dining out, hobbies) should not exceed 10-15% of your net income. If you are spending 30% or more, you are in a high-risk category.