Jane gets a credit card while she's in college and runs up $2,500.  She thinks that's not a very big balance, but she doesn't want it to grow any bigger. So she only uses the card to charge $25.00 hair cuts every month, and she faithfully sends in the $62.00 minimum payment per month.   The credit card carries 18% interest.

     At age 65, Jane still owes--you guessed it--$2,500.  How much interest has she paid on that $2,500 over the 45 years?   Would you guess $1,800? or perhaps $4,500?   Jane PAID $20,500 IN INTEREST CHARGES!

     Now suppose Jane never got that credit card.  She spent $25.00 in cash on hair cuts every month, and put the other $47.00 in an IRA with a mutual fund that over the 45 years averages 12%.   Jane's IRA WOULD BE WORTH OVER ONE MILLION DOLLARS TODAY!