Top 5 Ways to Spend Your Tax Refund

Are you one of the nearly 8 in 10 Americans waiting on a tax refund? If so, then you're likely looking at some significant cash, since the IRS says the average American tax refund is about $3,100.

OK, so now that you know the money is coming, what are you planning to do with it? Though a National Retail Federation Survey says that 30 percent of Americans will spend the money on everyday items, one of the smartest way to use your tax refund money is by putting it back into your house.

Here are the top 5 ways to spend your tax refund around the house:

1. Update the exterior. How would you rate your home's curb appeal? If you wince every time you pull into your driveway, the best way you can use your tax refund money would be to redo your landscaping, invest in a new walkway, or give the outside a fresh coat of paint.
2. Make energy-efficient improvements. With oil hitting record high prices once again and everything else costing more overall, making energy-efficient improvements to your house makes a lot of sense. Some of these improvements might include new windows, installing programmable thermostats, or springing for solar panels.
3. Buy a new mattress. According to the Better Sleep Council, the average life span of a mattress is five to seven years. Not that you are harming yourself by sleeping on an older mattress, but you may not be getting optimal sleep if your mattress is past its prime. (This would explain why I've been sleeping so poorly lately—well that, and the dog and my night sweats. But seriously, we bought our last new mattress nearly a dozen years ago!)
4. Remodel your kitchen. You'll get a really big bang for your return-on-investment buck if you spend your money updating your kitchen, so says a National Association of Realtors report. It says you can expect nearly 69 percent return on such a project. Other smart projects to consider that have a high ROI include adding a deck (72.8%), basement remodel (70%), and bathroom remodel (64.1%).
5. Install a fence. Getting a great-looking fence can do wonders for making your yard look more pulled together, plus it's practical if you have pets. Then, if you go to sell your house in the future, you can feel confident that a home with a fence is a selling point.

As you consider how you're going to spend your refund, you might want to check out these Tax Day freebies as well.

So, how are you going to spend your tax refund this year?