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  • Writer's pictureAalia Phiri

"In investing, what is comfortable is rarely profitable." — Robert Arnott

Updated: Apr 1, 2022

A life and career coach spoke to my class in several of our Personal Development sessions. I enjoyed his lectures because he addressed a variety of themes, including how we may use our talents and abilities to find a profession we enjoy, as well as what our own goals and passions are. One of the topics that piqued my attention was the numerous methods of earning money and investing. Despite the fact that it was only a brief discussion on the subject, it is one that I 'm extremely intrigued in because investing is something I would like to do in the future. Warren Buffet, a renowned investor, defines investing as “the process of laying out money now in the expectation of receiving more money in the future” (Langager, 2022).

Is investing complicated?

There are 8 types of income streams (Laforet, n.d.):

1. Earned Income- Earned from working a job.

2. Profit Income- Earned from buying and selling Products.

3. Interest Income- Earned from Lending money.

4. Residual Income- Earned when the job is done and you still get paid.

5. Dividend Income- Earned through owning stocks/companies.

6. Rental Income- Earned through renting out properties.

7. Capital Gains Income- Earned through the sale of Appreciated Assets.

8. Royalty Income- Earned through someone else selling your idea(s).

I will be placing more emphasis on number eight, dividend income, which is generated by investing in stocks or corporations. Investing is an excellent strategy for me to put money aside while I'm enjoying life and have it work for me afterwards. The professor revealed in class that he had invested in various firms, which sparked my curiosity as someone who wants to learn more about investing. However, what's the best way for me to begin investing? Currently, I cannot ask someone in the field because I don't personally know anyone who has invested in or purchased stocks. Despite this, the internet is free and full of knowledge from all classes of individuals, from amateurs to specialists, so here are some investing suggestions for beginners (Bank Bazaar, n.d.):

§ Setting long-term objectives to understand the importance of saving. For instance, one of my long-term goals would be to buy property.

§ Analyse the level of risk and identify the risks associated with the investment.

§ Controlling your emotions. As someone who is quite emotional, this might be a little difficult to do but it is important to control my emotions as the stock market is unpredictable. Hence, remaining calm and confident is the key to dealing with uncertainty.

§ Studying the stock market. As a beginner, studying the market is crucial so I do not make any grave mistakes.

§ Diversifying investments by investing in multiple companies instead of just one.

Educating myself

Regardless of being unable to invest at this moment, I may begin to plan for the future today. Suggestions that come to mind are reading books on the stock market and investing such as The Little Book of Common Sense Investing by John. C Bogle or Thinking, Fast and Slow by Daniel Kahneman. Additionally, I can take some brief online business classes or play stock market simulators, which are designed for novice investors who want to acquire expertise without jeopardising their money. Finally, if feasible, I'd like to network with people who work in the business world or who are investors so that I may learn from them and gain their insight. I could start investing and buying stocks in a year or two if I put most of the suggestions into practice.


Laforet, M. [n.d.]. 8 different types of income and how you can create each one. [Online]. Available from: < > [Accessed March 28 2022].

Langager, C. [2022]. How to start investing in stocks: A beginner’s guide. [Online]. Available from: < > [Accessed March 28 2022].

Bank Bazaar. [n.d.]. Guide to start investing for beginners. [Online]. Available from: < > [Accessed March 28 2022].

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