Let's assume your credit card debt is $2,000 at 22% interest, and you routinely make additional purchases of $20 each month thereafter. What are the odds of paying-off your debt in six-to-ten years?

Absolutely zero!

You will pay the credit card company roughly $45 a month, of which, an alarming $36.67 goes immediately to pay interest, while only $8.33 is applied towards the principal.

What's more, any real reduction in principal will be offset by your ongoing monthly purchases. Hence, after forty years, you will have paid the bank $21,600 and still owe it $2,000.

Between credit card fees and interest, loan costs, ATM charges, checking and saving fees, etc., all toll, the banks will roll you for over $100,000.

Moreover, assume you were recently approved for a $70,000 home loan at 11% interest over thirty years.

For this privilege, the bank will legally swindle you out of $167,806 in interest payments alone; notwithstanding, tens of thousands of dollars in closing costs, escrow fees, and points, et cetera.

Your true cost?

Two hundred and fifty-thousand dollars ($250,000). And regarding that seductive Adjustable Rate Mortgage (ARM) loan?

This banking scheme can dramatically increase your monthly payment. In fact, on a $100,000 loan, an interest rate rise of five-points can cost you an additional $134,074.

The Mysterious10x10x10 Plan?

It was recently reported that billionaire H. Ross Perot, paid a meager 8% on his taxable income and thus kept ninety-two cents of every dollar he earned.

Shrewd tax planning? Indeed.

Conversely, a lack of tax-planning results in the following: a loss of thirty-three to fifty-cents on every dollar we earn; you get a tax refund, (which is really an interest-free loan to the government for devalued dollars) and finally, you suffer another lost opportunity to seriously save and invest your money.

On average, the IRS (at the behest of predatory politicians) fleece most people out of $300,000-to-$1,000,000 during their lifetime.

But imagine saving and investing 30% or more of your income as did Gladys Holm.

Although she never earned more than $15,000 a year in her life--through the mysterious 10x10x10 plan, Gladys amassed an $18 million fortune.

All of which, was later donated to Children's Hospital. Can you figure out the "secret ingredient" in this mysterious plan?...

Now the Biggest Mistake You Can Make?

Super-rich banking legend Baron Rothschild, called "it" the eight wonder of the world. King Solomon, said "it" was given to all men.

Scientific genius, Albert Einstein, proclaimed "it" to be the greatest invention he had ever seen. Still, "it"--is working against most people. Nevertheless, here is how the secret of the ages can positively work for you, and change your life forever.

Oseloa McCarty, was born an African-American woman and raised in the South.

Forced to quit elementary school and care for her sick aunt, Oseloa faced extreme prejudice throughout her life and opportunities were indeed, few.

In fact, as a domestic worker, she never made more than minimum wage. Nevertheless, at age eighty-seven, Oseloa gave the University of Southern Mississippi a gift of $150,000.

And still, there remained over $250,000 in her bank accounts.

How did she account for her wealth? Listen carefully, she said: "The secret to building a fortune is compounding interest. It's not the ones that make the big money, but the ones that know how to save that get ahead."

There you have it! Compound interest is the Rosetta Stone to great wealth.

Undoubtedly, a weak or non-existent savings plan is an epic faux pas, but failure to take full advantage of compound interest, is the biggest money mistake you can make.

Therefore, always, make compound interest work, for you.

Let's Put It All Together

Since only a hand full of Wall Street's high-powered economic advisors and attorneys even understand what you are about to discover, pay close attention.

First, aggressively establish a debt-to-income ratio of forty-nine percent or lower.

Second, roll the savings into your own investment portfolio.

Third, invest in a home with little or no money down--pay it off in six-to-ten years and bank $100,000 cash, automagicallyIrresistible Ways To Achieve Your Dreams.)

Copyright © 2001, www.efobi.com. All Rights Reserved.

James Hart, is chief economic counsel and investment strategist at Credit Suisse Acceptance Trust. He is also an author and monetary scientist. Regarding questions, serious financial matters, or general topics of concern, fire-off an e-mail to: James Hart or go to: efobi.com