Tips For What Do With Your Tax Refund

By Michelle Durham

JENKINTOWN, Pa. (CBS) - Chances are your tax refund is on its way to you if it hasn't already appeared in your bank account. What are you planning to with it? What should you do with it?

CPA Glenn Meyer is President of GDM Advisory Group in Jenkintown and he has a number of ideas:

"The first would be to the extent that we are carrying any significant-interest credit card debt, it would be a good idea to whittle that down. It makes no sense to pay 12-percent, 15-percent, 18-percent on credit card debt when our cash is earning practically nothing these days. The second is the most obvious one: is to save it and to begin a savings program."

Meyer understands that some believe we shouldn't be receiving a big tax income check but, "a lot of people use these tax refunds as a forced savings program. From a practical standpoint I don't think it's a terrible idea. It is one way where we can't spend it and when we get it to use that and save that right away seems to be an effective way."

He says the only way to true financial independence is to learn how to pay yourself first.