Many of us have dreams and plans relating to getting rich, however, many never work out their dreams and plans and many others who try end up making the wrong choices and investments.
From the world of the wise, you are going to are going to discover that many people do not get rich by choice, and you may be one of them.
Investing in Treasury bills is one of the quickest ways to get money from your government since they have a short maturity period.
If you really want to get rich when you have little income on you, a treasury bill will be a good place to start with.
As I have already mentioned, getting rich is a choice you can make and I really hope you reach the financial freedom you desire.
Treasury bills are short term (1 year or less) debt instruments issued by the governments regularly to the investing public.
They are normally issued with maturities of 3, 6 and 12 months, the central bank maintains a record of Treasury bills on a central depository system (CDS) which generates statements of the investors holdings.
How to invest · You must open up an account on the CDS by filling in the necessary forms with your central bank.
· Appoint a primary dealer of you choice.
· Participate in the auction.
How much interest will you earn? The amount of interest you will earn depends on the price you pay for your Treasury bills.
The lower the price you pay, the higher the interest you will earn.
The interest you earn is calculated as: Interest earned = Maturity value- Cost of bid My article Bonds and treasury bonds terminologies explains the common words used in bonds and Treasury bills market in case you may need to get more understanding of most of the technical terms used in this article.
How will you gain? As with treasury bonds, you can also resell your Treasury bills holdings to another investor through your primary dealer.
It is just like in the case of the share, you can resell your Treasury bills at a higher price than the one you bought at in order to make quick profits.
When your treasury bond matures, the CDS will automatically credit your primary dealer who will in turn credit your account.
You have to remember that when you are acquiring a treasury bill, you are actually lending your government; in return, the government will pay back your money with interest which will be capital gain.
Treasury bonds encourages constructive savings which leads to constructive investments, many times, the interest you will receive from your bonds is always far higher from that you get from other financial institutions including banks.