It can be hard to refrain from spending your refund on fun things you don't really need, but consider it as a handover of money the government has been saving for you for the last year. If you haven't yet spent your tax refund (Reminder: Deadline for filing is Tuesday, April 17th!), consider these ideas for reinvesting that money into your home.
- Upgrade old or inefficient appliances. That 20 year old dryer is costing you more money than it's saving you by not replacing it. Upgrading inefficient appliances will undoubtedly make your life easier, your home more comfortable and save you on energy costs - a triple win!
- Get started on that home improvement project you've been considering. Regular monthly expenses often take precedence over buying paint for that bedroom with the ugly wall color or replacing the dilapidated mailbox. Using your tax refund to pay for these types of small - or larger - home improvements is a great reinvestment that often increase the value of your home.
- Enhance your landscaping. Landscaping plants and labor is an expensive endeavor and is often far down on the priority list. Your home's curb appeal is its first impression and investing in it is always a great idea.
- Take a chore off your plate. If your hard is hilly or your lawnmower outdated, consider hiring a lawn care firm to take care of it for you for a year. The extra time it buys you will pay for itself in no time and your neighbors will envy how good your lawn looks!
- Pay more on your mortgage. Paying even $100 more per month on your mortgage can significantly reduce the time it takes to pay it off and the amount of interest you'll pay.
- Start a rainy day fund. Many Americans don't have adequate savings and if this is you, consider starting a rainy day fund with your tax refund. You should have between 9-12 months of expenses socked away in case something happens and you can't work.