Why Financial Planning is necessary?

Some rich people hire the financial adviser to construct the financial planning for them. They realize that financial planning is necessary for them. They can plan to make the company great or live comfort after retire.

Here is why the financial planning is necessary:

Management
The spending should be less than the income is the main principle of the financial planning. The financial planning can help us to manage our money. It helps us what kind money for spending or saving for any people.

Estimation
The financial planning can estimate your financial needs in future. You may have some plan for future such as buying house, paying kid college, traveling around the world and else.
If you want make your dream come true, you can estimate the money you need in future. If you just an ordinary clerk, you must be difficult to make your dream come true.
Portfolio
In financial planning, we put the money not only in stock only but also other investment such as ETF, mutual fund, precious metal, and else. You are in high risk when you put all money at stock only or bond only.
Some financial plan as to diversify the asset to various financial assets or real asset. When the economic tight, they can buy more real asset such as plantation, cattle, chicken and others.
Retirement
We need to set up the retirement when you have no long work. It can guarantee you to get cash stream when you have no salary. The financial planning suggest as to set apart of our salary for retirement. The amount of money that you save at the retirement fund will increase. It because the investment generate the revenue. If you have no retirement fund, you can invest directly to the some company. In future, they may fulfill your necessity someday. The financial planning explain the steps to go wealth with restricted salary that you have. It suggest you live in frugal though you can generate million dollars.
Big Expenses
What happen to us in future is unpredictable. That is why the financial planning is important to fulfill the big expenses. A employee may got sick after working hard, the child may need dozen thousand dollar for college fee, and so. Without good financial planning, the man could not fulfill the big expenses.
A good financial planning encourage man to prepare money fro big expenses. They should not worry about the big expenses.
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How retiree make money

Some people are afraid to hear "retirement" word. They are afraid that they can earn money like they works at the company. Some old man are stress hear the word while they must fulfill the daily necessity.
In my country, the social security does not work. Most employee do not receive the retirement when they retire. The worker must be work hard. Some of the retirement sale cigarettes or candy inside train or bus. If the police get them sale in train or bus, the police will arrest them.
I think the retiree have to prepare to generate money especially who has no social security or insufficient retirement fund. Here is the ways to generate money for the retiree:
1. Find Freelancer
The retire people are tired to work again. That is why they can work as freelancer. They can use the knowledge and experience when they work at the office. It is not a difficult jobs for them. 
Some freelance jobs can pays $ 12 dollar for every hours and you can earn almost thousand dollar in a month.
2. Adjust the investment portfolio
Most retiree is the risk avoider investment. However, they may try invest at the risky investment to gain the revenue. Investing at bank account or certified of deposit is not good today. The interest is low and it could not protect you from high inflation.
3. Become landlord
Hiring some of the land. If you have many lands, you can hire to other people. Some people may use it for the crop field or farm that can generate revenue. You may share the revenue with the farmer. I think it is more profitable than charge the rent fee. This joint cooperation is also fair. When the crop yield increase, you will get more money and reversely.
If you have no land, you can hire the empty room for university student or worker. The cost of the room is about $ 400 a month.
4. Find smaller house
Some expert suggest to resize your house size when you retire. It could thrift some spending too due its small size. It does not need the expensive maintenance. The tax of small house is lower than the big house.
5. Make business from hobby
Most retire have time. They can take care the hobby. For example, an employee who loves cat can open a cat breed or pet shop that produces beautiful cat. A cat price could reach hundreds dollar. If you can sell 10 cats in a month, you can earn $ 1,000 in a month.
Some retiree can open a backyard farm to produce chicken and eggs. Buy a rooster and six hens and place them at your backyard. You can get four eggs a day or 120 eggs in a month. The organic eggs in Amazon is one dollar a pieces. You can get $ 120 in a month.
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