Not all aspects of your financial life deserve the same level of attention.

Instead, if we can learn to focus most of our energy on the most important things,

then we'll all be a lot better off financially.

Today, we're going to discuss your single most important financial asset and what you can do to protect it.

This is another episode of Ready for Retirement.

I'm your host, James Knonell, and I'm here to teach

you how to get the most of the life with your money. And now, on to the episode. Peter Drucker once said,

Efficiency is doing things right. Effectiveness is doing the right thing. Efficiency is doing

things right. Effectiveness is doing the right thing. How can we apply that to our financial planning?

Well, I see people who are highly efficient with our financial planning, but incredibly ineffective.

So what's an example of that? Well, efficient might be something like categorizing all the

expenses every single night in your budgeting app. You might be doing it right. You might be

categorizing those right, but is this going to make

a material difference in your financial well-being long-term? Now, it certainly helps. It could certainly

contribute, but that's not going to be a major factor in your overall financial success.

Now, effectiveness, again, effectiveness is doing the right thing. I would relate that in a financial

planning term to focusing on the right

thing. So what's the single most important thing that most people can focus on? It's our income.

Our income at the end of the day is the thing that allows us to consume what we need to consume

today while also saving and investing money for the future so that we can consume what we want

to consume in the future. So as we look at it like this, getting that one variable right,

it's almost like a domino effect. Of the more you can increase your income, the more other

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