Java arrays

Is it easier writing this:
String var0 = "asd";
String var1 = "sdf";
String var2 = "dfg";
and calling with:
var0, var1, var2

Or:
String[] vars = {"asd","sdf","dfg"};
and calling with:
var[0], var[1], var[2].

It's less typing, looks neater and helps with categorisation.
And a quote from a friend: "It's infinitely more efficient at storing, sorting, manipulating and outputing data"
It's also kind of explained in this tutorial, I think: http://www.youtube.com/watch?v=L06uGnF4IpY

They're also amazing when you get to loops. Take this, for instance:
String[] words = {"test","yes","no","maybe","upside down","downside up","etc."};

for(int i; i < words.length; i++) {
	System.out.println(words[i]);
}

Run this program, and you automatically print all values in the array words[] to the screen. The alternative is:
String[] words = {"test","yes","no","maybe","upside down","downside up","etc."};

System.out.println(words[0]);
System.out.println(words[1]);
System.out.println(words[2]);
System.out.println(words[3]);
System.out.println(words[4]);
System.out.println(words[5]);
System.out.println(words[6]);

Imagine if I wasn't even using an array to store the values, but seperate variables. I'd also have to have
String word1 = "test";
String word2 = "yes";
etc.
The second method doesn't automatically print new values either, you'd have to add a new System.out.println.

And sorry if I just confused the hell out of you, I don't know if you've done loops and such yet.