The average tax refund last year was around $3,000, according to the IRS. While it's always a safe bet to squirrel this money away for a rainy day, there are other uses for your refund that are not only more fun and personally enriching, but also completely responsible.

Here are our 10 best ideas for how you can use your tax refund in the coming year.

Plan a summer vacation

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Summer isn't too far off; begin planning and investing now so you know you'll be able to take the vacation you've been dreaming of. Be strategic: how much money will you need and when? Is your destination do-able, or do you need to think of new options? The earlier you plan, the more effectively you can use your money. For some inspiration, check out the New York Times' list of 52 places to visit in 2018, which includes places you may not have thought of, from Denver on a budget to farm stays in rural Iceland or fine dining in Tasmania.

Replace a faulty appliance and get "smart"

It may seem like a minor issue, but don't underestimate the liberation of no longer seething while cleaning your leaky coffee maker every morning. While you're at it, get a "smart" appliance that will make your life that much easier, like a Behmor coffee maker that brews to your personal specifications ($169.99 on Amazon), an iRobot mop ($169 on Amazon), or go big and get several smart appliances and master them all with Bosch Home Connect, which allows for such pleasures as starting a load of laundry from the comfort of your bed.

Fund a hobby

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Filling your free time with fulfilling hobbies is rarely free of cost. Baking, knitting, and even running all require some financial investment. Whether you're looking to fund a hobby you already enjoy or find a new hobby you're curious about, you can use your tax refund to maximize your personal enjoyment outside of work. New York magazine has compiled a comprehensive list of 20 hobbies to enjoy in 2018, from quirky pastimes like floral arranging, to learning how to become a better cook and hosting awesome dinner parties for your friends.

Make an investment in your human capital

Improve your résumé and position at work, or improve your future prospects, by making an investment in your human capital. You can take a class to learn a résumé-boosting skill, book a self-appointed business trip or conference that will help you make important connections, or, use your tax refund to invest in an exciting business idea you'd like to develop down the road.

Reboot

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Invest in your health (and finally meet those New Years' goals) with a diet or fitness reboot. This should be an investment that will encourage you to commit. To become a better eater, why not invest in a meal delivery service like HelloFresh or make homemade juices and smoothies with a Vitamix blender? If you're looking to become more fit, consider joining a gym (this can often be more effective than going to stand-alone classes), or if you want to work on your mental wellbeing, consider going on a wellness retreat with some friends.

Be a philanthropist

If you're feeling generous, there are plenty of worthy causes to contribute to this year, from fighting for safer gun laws, funding aid for Syrian refugees, giving money to a political campaign you believe in, or donating to an organization that's helping to raise awareness about climate change or pay gaps between men and women. Here are some of the top charities for 2018.

Get an electronic upgrade

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Use your refund to get a new phone or tablet, and pay it off in full so your monthly phone bill doesn't go up. While it's true that you don't need to upgrade your personal electronics often—definitely not as often as new upgrades come out—if you've been holding on to an iPhone 4, there are many benefits to going bigger. The iPhone x for instance is a huge leap from other editions, offering the ability to take professional-grade photos, a longer battery life (goodbye Mophie cases!), and even a wireless charging feature.

Get a more comfortable pair of shoes

Many of us continue to shuffle to work in blister-inducing heels for no good reason other than we're too lazy to find a comfortable pair of work shoes. Finding comfy shoes that don't look like orthotics takes a bit of research, but your time will absolutely be rewarded, saving you from blisters or even more serious complications like fasciitis or chronic arch pain. Check out our list of 2018's most comfortable, stylish shoes.

Get some new lingerie

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Yes, this is a completely worthwhile use of your money! Throw anything out that you'd be embarrassed to show to another human and replace all of it. Don't underestimate how much this will feel like a new beginning. Plus, there are some incredible new bra and undie brands that are worth investing in, as much for style as for comfort, many of which are owned and operated by women. Some favorites include the new underwear line from Everlane, Lively, Bare Necessities, Journelle, and Natori.

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Airbnb offers an affordable option for people looking to be more comfortable as they travel.

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Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.

The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.

Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.

Stick To a Specific Strategy or Niche

Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.

First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.

Be Vigilant About Viable Financing Options

While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.

Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.

Master the Art of Finding Good Deals

There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.