6The Six SimpleMoney

Power Habits

Want more control over your money and finances?

Need a firmer understanding of your personal finances

and how to manage them? Learning to manage your

money more effectively is not rocket science. But it

does require focus and diligence.

Start your journey by establishing our six SimpleMoney

Power Habits. Think of it as a building process. Begin

by integrating the first habit into your daily routine and

stack subsequent habits on top as each habit becomes

ingrained. The Power Habits are designed to be tackled

on a weekly basis but depending on where you are

in your financial life, building these habits into your

lifestyle may take a few weeks, a few months, or even

a year. Don’t give up! Work with the habits until they are

a normal part of your life. Embrace them!

The Six SimpleMoney Power Habits Introduction

Once a week, make a

money date with yourself.

Or include your significant

other or family members.

The point is to create a

special time each week

to work on improving and

simplifying your financial

life. Working as a team is

nice, but it’s also possible

you may just need some

time for yourself to get

acquainted with your

current situation.

Once a Week, Make a Money Date with Yourself

1

Time well spent results in more money to spend, more money to save, and more

time to vacation.

-- Zig Ziglar

Don’t be afraid of personal

finance. The way to go is Baby

Steps. Your first step is to commit

to devoting 30 – 60 minutes

each week to getting a grip on

your financial life. Put it on your

calendar and don’t blow it off!

If this sounds horrible to you,

find ways to make it more

enjoyable. Plan to have your

beverage of choice on hand

(mine is red wine) and determine

where in your home you want to

tackle whatever financial tasks

are on tap that week. Pick a

reward (besides wine, I mean!)

for yourself to enjoy after you

have put in your time – a long

soak in a bathtub, a leisurely

walk, or a 30-minute nap.

So, what money conversation

should you have with yourself

or your loved ones during this

time? You may know what

areas of your financial life need

work. If not, your first date

should be to start a list of

micro-projects to get yourself

in a better financial place.

The first critical step is to

develop (and commit to) the

habit of sitting down with your

financial information every

single week. Fifteen, thirty, sixty

minutes – whatever is needed, or

however long you can tolerate.

Put it on your calendar. Once

you’ve established this first

habit, you’re ready to stack on

SimpleMoney Power Habit #2.

The Six SimpleMoney Power Habits Power Habit #1

2

Make Friends with Your Finances

Too often we treat bill paying

and other financial chores

as dreaded tasks and painful

necessities. Right up there with

cleaning toilets! Starting today,

I want you to change your

mindset. Embrace your financial

situation, regardless of what it

is. Commit to yourself that you

will take control of your finances

and make your money not only

behave but go to work for you.

Don’t ignore your money. Don’t

avoid, put off, or dread dealing

with financial tasks. Remember

YOU are in charge. Even if it

takes months, little by little, you

CAN do this! Each week or each

month, you can choose a small

part of your financial life to rein

in, review and evaluate and

consistently monitor with your

watchful eye.

The key is your mindset. After all,

you don’t get to be a financial

badass by ignoring your money

or being afraid of what you

might find. Own it. Do it. Love

it. Change your relationship

with money right here, right

now. You are the boss of your

money. Be the boss of your

money and act the part.

You’ve got this.

Better still, we’re here

and available to help.

The Six SimpleMoney Power Habits Power Habit #2

Before you roll your eyes

and think, “Everybody

says that!” consider your

current modus operandi.

Are you actually doing this?

Consistently? Be honest.

What do I mean when I say you

should pay yourself first? Paying

yourself first means you set aside

some of your income for savings

before you pay your bills or spend

on discretionary items. Too often

people approach their budgeting

in the opposite manner. The

paycheck gets deposited, bills

get paid, and there is a brief

assessment about what to do with

what remains. You’re confronted

with the voice inside your head

that says, “I want to spend my

Pay YourselfFirst

3

The Six SimpleMoney Power Habits Power Habit #3

We have become

99% money mad. The

method of living at home

modestly and within our

income, laying a little

by systematically for

the proverbial rainy day

which is due to come,

can almost be listed

among the lost arts.

-- George Washington Carver

money now,” while the other,

smaller voice says, “I need to

save money for later.” Guess

which voice wins nine times out

of ten? The compulsion to spend

money right now.

If you have funds withheld

from your paycheck for your

employer’s retirement plan,

kudos to you! But don’t stop

there. Take it a step further and

develop the habit of setting

aside a portion of your take-

home pay before you pay your

bills. If this is a scary idea for you,

start small but start somewhere.

It will take no time before your

spending habits will adjust

to the new constraints, and

you can increase the amount

you are paying yourself first.

The only way to successfully

get our money to work for us

is by taking the financial reins.

Grab those financial reins:

Start with $20 per paycheck if

that is all you can muster. But

set it aside. Build the habit.

Financial badassery awaits.

The Six SimpleMoney Power Habits Power Habit #3

4

Masterthe Powerof Waiting

You’ve been introduced to the

first three SimpleMoney Power

Habits and I hope you’re feeling

the power! Are you keeping your

weekly date with your money?

Do you view money as a friend

instead of a foe? Have you

rearranged your budget to pay

yourself first? If so, you are ready

for Power Habit #4: Master the

Power of Waiting.

Our society is all about instant

gratification. It’s challenging to

break the habit of acting hastily

to feel immediately rewarded.

But the truth is, the inability to

wait tends to tank your finances.

To counteract the temptations of

immediate gratification, develop

a new habit: The habit of waiting.

If it helps, create specific rules

for yourself. As an example,

determine for any purchase over

$100, you will not impulse buy,

but instead wait a week. Discuss

it with your significant other or a

trusted friend before pulling out

your wallet.

The Six SimpleMoney Power Habits Power Habit #4

Life was always a matter of waiting for the right moment to act. -- Paulo Coelho

My favorite rule, which I turn

to regularly both for myself

as well as for my daughter, is

straightforward. If your potential

purchase was not specifically

what you went shopping for

and wasn’t something already

on your “to purchase” list, wait.

I try not to be excruciatingly

strict so there is this caveat:

Sometimes we have something

on our “to purchase” list and

are surprised to see it on sale.

If it’s a terrific deal and the

money is available, we consider

the purchase even though it

wasn’t what we set out to buy.

Determine what rules you

need to master this habit. The

point is this: if you can make

yourself wait a day, or a week,

or a month before purchasing

something that wasn’t already

a planned purchase, do it.

Once you have mastered this

habit, move on to expert-level

waiting. Expert-level waiting

means waiting to purchase

something you’ve already

decided to purchase. In my

family, we’ve seen this make

a difference in our spending

and we’ve gotten much better

at our expert-level waiting

skills. By schooling ourselves

to wait a bit, often times we

change our minds about the

purchase or find an alternative

solution. Try it for yourself.

Gauge the wait time you

choose based on the type or

cost of the purchase. Again,

Know Thyself. And Know Thy

Weaknesses. Sometimes

breaking the spending habit

is a matter of simply saying “If

I still want this item tomorrow,

I’ll come back and buy it.”

You can do this. Know that

you can and take the steps.

Master all of our SimpleMoney

Power Habits and see your

financial life turning a corner

and becoming simpler.

If you haven’t noticed

yet, our SimpleMoney

Power Habits are gaining

momentum. I hope you are

seeing the trend in these

power habits.

People who don’t already

embrace and love dealing with

their finances have to retrain

their brains to think about

money in a positive light. The

proper mind shift occurs when

you create a dedicated time

each week to work with your

finances and view your money as

a friend and not a foe. Prioritize

paying yourself first. And master

the discipline of waiting.

Build a Mountain Instead of Digging a Hole

5The Six SimpleMoney Power Habits Power Habit #5

Is your spending out of control?

Maybe it’s generally in check

but you sometimes spend

mindlessly? Start thinking about

all your money transactions

repeating the following mantra:

“Am I digging a hole, or

building a mountain?”

About to use your credit card

for that new pair of jeans you

just MUST HAVE? Are you

digging a hole or building a

mountain? (Digging a hole!)

Did you resist buying something

and instead added those funds

to your cash cushion? Are you

digging a hole or building a

mountain? (Building a mountain!)

Are you stopping for a $4.50

coffee drink simply out of

habit? Are you digging a

hole or building a mountain?

(Digging a hole!)

Did you pay extra on your debt

payoff this month? Are you

digging a hole or building a

mountain? (Building a mountain!)

It seems silly but get in the

habit of repeating the mantra

every time you consider doing

something with your money.

I’m not advocating you become

a miser with your money,

unless that is your goal. Just

rewire your brain so you’re

mindfully thinking about financial

decisions in a different light.

Break the cycle of mindless

spending. Stop digging a hole

for yourself with your spending

choices. Instead, build yourself a

money mountain. Imagine your

financial badass self, sitting on

top of that beautiful mountain.

You know the one. With the

gorgeous 360-degree view, you

can evaluate all the paths forward

and choose the one that gets

you where you really want to be.

Review all the power habits

regularly and incorporate them

into your daily life. They are

habits, after all! A simpler, more

abundant financial life awaits

you, but it requires work on your

part to realize it. You have some

money mountain-climbing to

do. The good news is that this

mountain has a peak – and the

views are magnificent. You can

get there with a little bit of time

and effort. And we’ll help!

The time making money should be greater than the time that you are spending money.

– Sophia Amoruso

Here’s our final

SimpleMoney Power Habit

in the series. Hopefully you

are successfully practicing

our first five habits. Do you

have a dedicated time

each week to work with

your finances? Have you

adjusted your mindset to

think of money as a friend?

Are you paying yourself

first? Are you mastering

the discipline of waiting?

And are you building

a mountain instead of

digging a hole with your

financial choices?

The Last Power Habit to Master is This: QuestionEverything

6

If we command our

wealth, we shall be rich

and free; if our wealth

commands us, we are

poor indeed.

-- Edmund Burke

First, I’d like to clarify I’m not

suggesting you become a cynic.

What you do need to become,

however, is discerning. Auto-

pilot spending and mindless

money management need to be

relics of the past.

Question the purchases you make.

Do you really need this? Does the

purchase have meaning to you

beyond the obvious role it fills?

Question all areas of your

budget. Whether you do this all

in one go or take it in small bites,

comb through your spending

categories. Do you need all

the services you are paying for

on your phone plan? Can you

save money by reducing your

utilities use? Should you live in a

less expensive home or drive a

cheaper car?

Question your motivations

around making changes with

your money. Are you staying in

line with your values? Or are you

following the herd?

Even though it might seem like

a less-than-positive approach to

your financial life, it isn’t meant

to be a negative experience.

Instead, questioning everything

is simply eye-opening. Too much

of our daily behavior is done

without conscious thought or

effort. We’re on auto-pilot with

much of what’s on our everyday

docket. Turn off the auto-pilot

and start examining what you are

doing with your money.

All power habits require some

effort and some practice.

Once you start changing your

mindset and your actions,

however, the habits become

easier. It’s really up to you to

view these habits as a positive,

pleasant experience. The key

is to embrace the process.

Recognize that you can actually

do this. You can understand your

personal finances and master the

necessary skills that will bring

you the abundance you desire.

The Six SimpleMoney Power Habits Power Habit #6

That’s it! Easy as pie! Just

commit to making these Six

SimpleMoney Power Habits

part of your daily, weekly

and monthly routine.

Establish the Power Habits step by step and watch your mindset and habits change. Just like a garden won’t flourish without water and care, your financial life will wither without measured focus and attention. You don’t need to become a financial expert. You only need to be an expert in YOUR finances. Commit to these habits, understand your finances, and master control of your money.

Power Habit #1: Make a money date

with yourself

Power Habit #4: Master the power

of waiting

Power Habit #2: Make friends with

your finances

Power Habit #5: Build a mountain

instead of digging

a hole

Power Habit #3: Pay yourself first

Power Habit #6: Question everything

The Six SimpleMoney Power Habits Summary

Dawn G. Starks, CFP

Dawn is a CERTIFIED FINANCIAL PLANNERTM practitioner and financial advisor who

has worked with individuals and couples in all stages of life for over twenty years.

She established her financial planning firm in 1999 with the goal of simplifying the

financial planning process for her clients. Making concepts easier to grasp and less

scary is empowering and leads to both financial literacy and financial security. She

also understands the importance of having the right partner riding shot gun on

your financial road, checking for pot holes and navigating detours as life happens.

In addition to her commitment to simplifying financial planning for her clients,

Dawn has also discovered the personal benefits of living life more simply through

her study of minimalism and simple living. With the launch of SimpleMoney, she

now enjoys writing about simple living and minimalism as well as personal finance.

She is currently completing her first book.

Due to her long commitment to giving back to her local community, Dawn was

recently chosen to receive the 2017 Outstanding Philanthropist Award from

the WNC Chapter of the Association of Fundraising Professionals for National

Philanthropy Day. Additionally, Dawn was honored in 2017 as one of the top 200

Financial Advisors in the country by Working Mother Magazine.

Questions or comments for us? Email us at contact@simplemoneypro.com

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©2018 Simple Money, LLC, 440 Montford Avenue, Asheville, NC 28801

The Six SimpleMoney Power Habits About Dawn Starks