Wget: download files to specific directory
use -P option.
wget -P /home/user/directory_you_want http:url_you_are_downloading_from
See more at : Stackoverflow page
The -P option downloaded all the files to the specific directory however it created 2 new directories inside the target directory.
So the files went into /home/user/xml/192.168.1.1/public_html/
So I tried it with the -P option and the -nd option and it worked the way I needed it to.
The final code looks like this
wget -m -nd --user=user --password=password -r -l1 --no-parent -A.rss ftp://localhost/public_html/ -P /home/user/Desktop/xml/