Can any one tell me why should i invest my money?

and where should i invested

The main reason you invest money is because you will need money in the future when you retire. You also invest to buy a house or to save for a time you are layed off.

First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. Financial disasters like getting layed off or sick happen to all of us.

Second, I would pay off all high interest debt. Pay off everything you can except the house mortgage. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay.

Third, if you have money left, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.

Investing in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work.
Taking advice off someone you met over the Internet and know nothing about is risky. Read these websites for further information.

Call fidelity investments and ask to invest in American Funds-they average 11% return. Whatever you do, do not invest with Smith Barney, under any circumstance, they will find a way to rip you off no matter who you invest with.....KECK

Well if your money is in a bank account you are probably earning 3% interest. The average return of the S&P 500 index is between 7%-9% a year. Therefore if you keep it in the bank your money will double every 24 years. Invested in an S&P 500 index fund it will double every 10 years. So if you put $10,000 a leave it in a bank you will have $20,000 in 24 years. If you invest it you will have about $60,000 That is why you should invest. Just buy a diversified mutual fund.

investing is putting ur money in something and getting more in return...i say u invest in the stocks..but make sure u have a good broker..

Generally speaking, investing your money will give you a better return than stuffing it in your matress.

That does not always happen, however. Check out the results of those who invested in 1929. Those who stuck their money in the matress, did much better.

T-bills are a relatively safe investment but not without risk. If the value of the dollar drops, you may wind up loosing money.

Oil at the momemt appears relatively good but if everyone scraps their SUV's that might change.

Large cap investment grade stocks are currently selling at very reasonable prices. There may be a reason for that. Investors may be expecting a recession to be around the corner.

You should obviously invest your money so that you have more later than you do now.
First step is educating yourself. Go to the library and get some books on investing. There are basic ones. Read them and learn before listening to anyone tell you where to put your money. Also try reading online as much as possible. There are a couple sites listed below. Until you educate yourself a bit, it's probably best to just keep the money in a savings account, or invest only a small percentage of your money, until you get more comfortable.
Good luck!!

if you are financially independent, no need to invest. My definition on financial freedom is $10 Million+

Well, the idea of investing is so that your money can work for you, and it will double or better over time, so that, when you are older, you'd have lots more than you do now. That way you're free to do what you want. At some point you will be able to have enough so that you can support yourself without any job.

Where you should invest is really difficult. You need to consider a number of factors related to your individual situation. Many people start with mutual funds, as they are easier to deal with when you have little information. But over the long term, you'll want to read some basic books on investing such as "One up on Wall Street" by Peter Lynch, "Stocks for the Long Run" by Jeremy Siegel, and "The Intelligent Investor" by Ben Graham. Best of luck to you.