Why do we need to invest in stocks?

People think about stocks as a mean for the rich to "win" money.

It's not true.

First of all, if you are interested in stocks to win money like if it was a casino or a horse race, you will lose most of the time. Even if you study finance like I did, you'll still lose money, most of the time. It's not because you're stupid but it's because you have the wrong mindset. If you have a gambler's mindset, you'll get some wins but also lot of loss. It's just plain probabilities and mathematics.

Now, if you have an investor mindset, you'll see that the stock market is not a casino but a way to speed up your savings as long as you use strategies that make sense.

And yes, the only purpose for the stock market is to invest your savings in order to make it grow.

Why is it the best?

1. In the long run, the stock market gives the highest returns. It even beats real estate.

2. It's liquid meaning you can buy and sell instantly. Compared to real estate, it takes more time (months) to sell a property while it takes seconds to sell a stock.

3. It beats inflation. People tend to forget that a savings account in a bank returns lower than inflation. It means that each year, your money in your bank loses its value.

Just for those three reasons, the stock market is the best tool to "park" your saved money in order to make it grow.

And no, you don't need to be rich to invest in the stock market. Nowadays, thanks to the internet, you can open a brokerage account online with a minimal operation costs. Anyone can do it :)