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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When you are newly hitched and learning how to combine your essential legal and financial information as well as your accounts, it can be confusing.

Many people live together before getting married and have begun the process of combining accounts and sharing responsibilities. However, some people wait to do this only after marriage, and others wait until they're married to live together. Whichever path you've chosen, it's still crucial to know a few tips to manage money together as newlyweds to determine where you should begin and how you can remain on the same page.

Discussing Money Motivations

As we begin to share money with our significant other, we soon find out what one person may rank as a priority regarding money and the other may not. As such, sitting down and discussing money motivations is important. Two people who cannot agree on how to handle money may cause serious issues. This should include:

  • How to deal with money following payday. Is a percentage put into savings? Is that the day to splurge on dinner, drinks, and more?
  • The frequency and size of payments made to debts. Some people like to pay minimums, whereas others pay in full or make double payments.
  • What do you each consider money well spent? Is it a new 70" 4K television? Is it an investment? Is it paying as much debt off as possible?
  • How do you go about consulting each other before making purchases over a certain amount?

Establishing Financial Goals

After you evaluate the motivations behind your money and how it should be spent, you'll need to spend time together hashing out financial goals. As newlyweds, there are certain things on your list that you're going to want to save for. How do you go about that? How much of each paycheck will you dedicate to a particular fund?

Some things in the future worth making a financial plan for include savings and paying down debts. This is the time to be honest about your current financial standing. If you're looking to buy a home, you'll want to assemble a first-time homeowner financial checklist to begin to develop topics of conversation. Some of the things to consider setting goals for are:

  • Student loans
  • Car loans
  • Future children
  • A house
  • Medical bills
  • Delinquencies on credit reports
  • Vacation and rainy-day funds
  • Emergency funds

Budgeting Together

The more honest and open you can be with each other about the money you have and now the debts you share, the better. Implementing plans for the best ways to have the things that you both desire while still taking care of existing demands is important. These can be uncomfortable things to talk about; however, these conversations are necessary.

Following these tips to manage money together as newlyweds will allow you to have a starting point for conversations that can be tough to start. The sooner you and your partner get on the same page with finances and the responsibilities that come with them, the easier the transition will be and the sooner you'll find success.

It's the dream: money you can count on to keep rolling in, even while you sleep.

Passive income isn't entirely passive, of course. You'll put in work up-front to get the profits rolling, so don't relax in your recliner just yet. But with so many potential sources of passive income available to you, picking one or several will mean that the day you can finally kick back will draw steadily closer.

Rental Properties

Real estate is a tried-and-true wealth builder for a simple reason: people will always need somewhere to live. Research the market in a growing community until you know a good deal when you see it. You can maximize rent by fixing up a deteriorating property or upgrading a mediocre one. The key is to hire a property manager to do all the day-to-day landlord duties for you—and you'll need a good one. Smart investors put their profits in another property and repeat the process until they have a diverse portfolio.

A YouTube Channel

You can start a blog if you're more comfortable hiding behind a computer, but consumers are more likely to prefer video content. Post a series of “how-to" videos to answer questions about whatever you're an expert in.

You can put up any content you want, but if you don't want to commit to regularly updating it, focus on “evergreen" topics that will draw clicks for eternity. Ads will create your income, especially if your channel grows in popularity. Better yet, sign up for affiliate marketing. If you recommend a product and provide a link to buy it, you'll get a small percentage of those transactions.

Auto Advertising

If you don't mind vinyl-wrapping your car with an ad for a company, you can get cash just driving around and running your errands. Make sure you contact a reputable company that doesn't ask for any money from you; if they're the real deal, they'll evaluate your car, your driving habits, your area, and more. Bonus: the brighter the ad, the easier it'll be to find your vehicle in the parking lot.

Digital Products

What's something that people will pay for but doesn't require shipping on your part? Finding that item is what can supplement your income indefinitely. Write an e-book, charge for your cross-stitching patterns, design prints that people can digitally download, invent an app, record a “masterclass," or whatever else you want. Every time someone new discovers it, the cash register rings. With a little more effort, this is a potential source of passive income for you that can continue to grow. Once you build up a customer base, they might want more products. The good part is that it's up to you whether you wish to give it to them.

Airbnb is a great option while traveling, but you should protect yourself from damage charges from unscrupulous hosts.

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

However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.

And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.

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