How to prioritize the saving goal

Most people confused to set the goal of saving. That is why they do not have the saving goal and then they do not have motivation to save. Actually, it is not difficult to set the saving goals. Here is some guidance to prioritize the saving goal:

1.       Get out of debt

If you have so much debt, you have to pay it down. When you have debt, you will not be able to save any penny. Collect each dollar for paying down the debt. Pay down the high interest debt first and then, pay other debt.

2.       Build Emergency

After get out the debt, you have to create emergency fund that is useful to avoid you from debt, when you suddenly need money, you can use the fund. The amount of emergency fund is around six times of your spending monthly.

Once you have fulfilled your emergency, you can think about the other saving goals.

3.       Retirement

Some article that I have read said that the retirement is 50% of our salary. It is very big to me.   The retirement is very useful when you quit working. It is help you to buy the food, cloth and other when you have no jobs. Some people use the retirement for go trip outside to enjoy their old time.

4.       House

People must have house as their shelter. They know where they go home. House is not cheap and you need to save before buying a house. Some people need saving dozen years until they buy a house.

5.       Cars

You may need a vehicle so you can use it to go everywhere. An old car may be suitable for you if you have low saving. If you have so much saving, you can consider the new car that is more comfort than the old.

6.       Others

Perhaps you want to continue your study to the master degree. Perhaps you want to save for new laptop or perhaps you want to repair your house. You can set it below  the others saving goals.

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Why a retiree should saving his money?

The retirement is an element of financial planning. The financial planning is said not completed if it does not include the retirement. Either employee or businessman needs retirement fund. Those funds are important when they retire from company. We realize that we cannot work forever. Old man cannot work fast as the young man. Some old man has disease. They cannot stand for hours or sit in the front of the computer for hours. That is why the company retire the old man and replace them with young man. The company want the efficient and effective employee or labour to gain profit.
After retire, the retiree has no paycheck from the boss.If the worker has a business, they can generate money from there. The business revenue can replace the paycheck. However, not all retiree has business, so they just expect the money from retirement fund.
If you save much money in retirement fund, You can withdrawn much money too and reversely.
When the worker near retire,  the spending could increases. Perhaps they need big fund for kid education. The college fund is high today especially medical school.
When you retire, you may need to maintenance your house because you have used it for dozen years. The leak roof should be improved or it will damage the other part house. For the retirement who has not yet pay the mortgage off, they need so much money.
For the freelancers or businessman, they should contribute to the retirement fund too. They are different from employee which the company cut the retirement fund from the salary directly. The freelancers or businessman should earmark the payment and business profit to the retirement fund.
To get the great retirement fund, people should contribute early. They can start to contribute at twenties. The money will grow over many times. They will withdraw more money than employee who starts contribute lately. Example, Mr Jones started contribute the retirement fund at 20. He used to paid $100 each month. Now, Mr Jones decide to withdrawn the retire after 50 years work. He will get  equals. On the other hand, Mr Thorn used to contribute $100 but he started to save at 40. He also withdrawn at the 70. Mr Thorn got equals
We can see Jones got more money than Mr Thorn despite those two employee contribute $100. Jones has started to contribute earlier than Thorn.

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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Financial Planning for retirement
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Financial Planning for retirement

As the age become old, the employee should plan their financial planning. They must need money especially when the company retires them. Some retiree may need little money due their children has become independent but some parent may have one or two sons that need money.
Here is the retirement financial planning that retirement need:
1. Sell the big house and buy the smaller house. As you become old, your child will leave you and they may buy house for the family. There is some empty space that you do not need it. You can offers the big house to big family. I think you can save the excess cash for investment. With small house, you do not need to make maintenance.
2. Evaluation the investment. Most retirement does not want to invest at high risk investment that needs adrenalin. Invest at precious metal is also good to save their wealth.
Some retire does not afraid to allocate hundred percent of the portfolio to the stock that pay dividend. I think they must evaluate the portfolio due to tight economy. They can buys land, farm, cereal field, and else. Do not use one basket to bring your eggs.
3. Take side jobs that does not make tired. The retirement can collect little dollar from it. Some retirement cannot stand if they should stop working. My father has planted some cassava after retirement. He wanted to enjoy the retirement with some work.
Some retirement can open an online business that does not need capital and human power. The retirement can works for three hours a day.
4. They need to prepare where they live
A Village where there is no noisy may be good for retirement. The living cost on the area may be cheaper than in the city. You can save some dollar by living in village and breathe fresh air every day.