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why invest in stocks

Everyone needs to invest their money to make it grow. Now you might be thinking that investing isn't for you, but you would be wrong. There are many reasons why you need to invest your money. Here is a list of a few reasons why it important for you to step up and take action.

1Inflation. Every year inflation is making your money worth less and less. Inflation is one of the main reasons why many people will never get ahead financially. Here's the good news though. Inflation is at about 3%. If you could earn say, 20% on your money every year, you would be getting richer, and richer rather than poorer, and poorer.

2 Multiple incomes. I know most of you work for your money. But think for a second, what if you got fired? All of a sudden you would be in big financial disaster. You will have to panic and hurry up and find a new job. Well if you were making money from investments as well as your job getting fired wouldn't hurt you so bad. You could use your investments to help you pay the bills while you look for a new job.

3 Financial freedom. In a world were social security is going bankrupt you will no longer have the luxury of a check every month when you retire. Which means many of you will not be able to retire. You will work every day from the day you start to the day you die. Wouldn't you like t get away from this? Of course you would. With investments you can. All you have to do is to make your investment income enough to pay the bills.

4 The rich invest. Now forget anything bad you've heard about the rich for a second. If there is anything we know about the rich is that they know what they are doing with their money. Otherwise they wouldn't be rich. Now I know there are some rich people who just inherit money from their parents, if they are not good with money though they just end up losing it all. That is why the richest people in any society are always self made. So, think of the rich as money experts. If they all invest their money shouldn't you?

To learn basic tips about how to make money in the stock market visit http://www.stocks-simplified.com/

Contributed by shnrosenberg on February 23, 2008, at 8:44 PM UTC.

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