Okay...let's say your tax refund was just $500

Here are five great ideas for investing a tax refund in your home if you receive $500 or less back from the IRS this year. 1. Go with the low flow If you're tired of watching money go down the drain, invest in the latest low-flow showerheads. Old showerheads (pre-1992) can pump out 5 gallons of water per minute. Newer showerheads, while more efficient, still use 2.5 gallons per minute. But the latest low-flow showerheads use up to 50% less water than even the newer showerheads, yet technological innovations make it seem as if you're bathing under the same amount of water. The latest low-flow showerheads run between $50 and $200 apiece, but the payback can be quick. Swapping out old showerheads can reduce your home's water-heating costs by about $150 a year. If your showerheads are already updated, but you're still looking for ways to save on water, install a low-flow toilet. One of these efficient flushers can shave $90 off your annual water bill. 2. When it rains, it pours Homeowners insurance is critical, but it's not comprehensive. Most policies offer limited liability protection that could prove inadequate if someone gets hurt on your property and you get sued. Umbrella insurance offers liability protection beyond the limits of your homeowners policy. An extra $1 million in umbrella liability coverage, which extends to your cars, too, typically costs about $300. If your liability insurance is sufficient, then consider flood insurance instead. Floods can affect homes in all 50 states, yet fewer than 1 in 5 homeowners have flood insurance. Typical homeowners policies exclude floods. The average flood policy costs $540, according to the National Flood Insurance Program; the average flood claim totals more than $33,000. 3. A model of energy efficiency A typical homeowner spends an extra $350 a year on heating and cooling due to air leaks. Gaps, even small ones, around doors, windows, and recessed lights waste energy and raise utility bills. You can conduct your own energy audit and try to seal air leaks yourself, but the result will vary wildly depending on your DIY skills. A better option might be a professional energy audit, which can cost between $400 and $600 for a full diagnostic inspection. Expect the use of sophisticated equipment like thermal or infrared scanners, blower door testers, and smoke puffers that can pinpoint energy leaks. A visual-only inspection by a pro costs less--about $150--but the findings won't be as accurate. 4. Lightning only needs to strike once A power surge, whether caused by a lightning strike or some other fluctuation in your supply of electricity, can wreak havoc on home electronics. Thousands of dollars' worth of computers, appliances, and entertainment equipment can get fried in the blink of an eye. If you're lucky, perhaps some of your electronics are plugged in to surge protector power strips. Most probably aren't. Although homeowners insurance offers peace of mind that your possessions will get replaced, a smart way to prevent damage in the first place--and avoid the hassle of filing claims and paying deductibles--is investing in a whole-house surge protector. For about $300, an electrician can install the device at your breaker box. It only takes an hour or two. Keep surge protector power strips in place for an added layer of safety. 5. Roll out the rain barrel Why pay for water when nature supplies it free of charge? The typical homeowner spends about $140 annually on water used outdoors. Meanwhile, an inch of rain dumped on the roof of a 2,000-square-foot house produces 500 gallons of runoff. It makes sense to harvest that rainwater to nourish plants and rinse off patio furniture. Enter the rain barrel. A rain barrel is much like it sounds: A large container hooked into a downspout that stores rainwater for later outdoor use. A basic commercial rain barrel can cost as little as $50; a more sophisticated system with multiple barrels, pumps, and spigots can run as much as $600. The U.S. Environmental Protection Agency estimates that a rain barrel can save 1,300 gallons of water during peak summer months, and that's a lot of showers or loads of laundry!

Using your $1000 tax refund for the biggest home bang

Consider these five great projects that cost around $1,000 if you decide to invest a tax refund in your home this year.

1. It all comes out in the wash
It might not sound sexy, but equipping your laundry room with a new washing machine will pay off immediately on your utility bills. Today's high-efficiency washers use less water per load than standard top-loaders, so you save on your water and water-heating bills. Replacing a washer made before 2000 with an Energy Star model can save a typical homeowner as much as $135 annually. We bought one last fall and there's a world of efficiency difference, and much lower water usage.

A high-efficiency top-loader costs between $700 and $900. A stylish and even more efficient alternative is a front-loading washer. Prices for front-loaders start at about $750. As a bonus, either high-efficiency option could net you an appliance rebate from the manufacturer, your local utility company, or your state government.

2. Make your mortgage disappear
A mortgage, especially one that spans three decades, can seem insurmountable. Yet it's possible to use small sums of money over time to make a big dent in the principal. The net result is saving thousands of dollars on interest and shortening the time you spend paying off the home loan.

Let's say you take out a $250,000 mortgage. The rate is fixed for 30 years at 6%. Your monthly payment would be $1,500. Over 30 years, you'd pay a total of $540,000. But if you pay an extra $100 per month--$1,200 per year--you'd pay off the mortgage four years early and save $52,000 in interest. Use a mortgage calculator to run your own numbers.

3. Where there's no smoke, there's fire
Do you dream of curling up in front of a roaring fire, yet your home lacks that one essential ingredient--namely, a fireplace? Don't fret. Your dream can become reality at a surprisingly affordable price. Ventless fireplaces offer the ambiance of the real thing without the need for a chimney or flue to vent smoke outdoors.

Ventless fireplaces, which exhaust small amounts of combustion gases inside the home, can run on natural gas, propane, electricity, or flammable gel. At between $2,000 and $6,000, including professional installation, gas units are pricey. More budget-friendly is an electric ventless fireplace that starts at $1,000. All you need to do is plug it in. Gel-fueled fireplaces are in the $300 to $700 range, with no professional installation required. A gel canister that'll burn for two-plus hours costs $3.

4. Don't knock it 'til you try it
A new entry door can do wonders for a home. Not only can it enhance curb appeal and security, but the right door can lower utility costs too. An energy-efficiency exterior door can shave as much as 10% off energy bills. Plus, if you install an eligible door in 2011, you can claim a federal tax credit worth up to $500, excluding installation charges.

Wood and fiberglass doors are usually the most expensive options, but you can get a steel entry door installed in a couple of hours (assuming no surprises) for about $1,200. The money you get back from the tax credit will reduce this cost. As a bonus, Remodeling Magazine estimates that a $1,200 steel entry door replacement project actually will add an incremental amount of value (102%) to your home.

5. You take the high road, I'll take the slow road
Don't let your property line limit your spending plans. Some small investments on your part can benefit an entire neighborhood, which not only improves livability but can also increase property values. Take, for example, the speed hump, a raised mound of pavement on a residential street designed to slow lead-footed drivers.

One traffic-calming study found that 12-foot speed humps reduced average speeds by 22% and the average number of traffic accidents by 11%. You'll need to work with your local government to have a speed hump installed, but offering to foot the bill can grease the wheels of bureaucracy. Basic speed humps start at about $1,000 apiece. Your share will be less if you convince neighbors to chip in.

Now if your tax refund is around $500.00 or less stay check back for our next posting...

Using your $2500 tax refund for the biggest home bang

If you want to invest a tax refund in your home this year, consider these Five great projects that cost around $2,500.

1. A tankless task
If you're like most homeowners, you probably don't care how your water gets heated, so long as it's hot when you turn on the shower. Fair enough. But your water heater deserves closer attention, especially if it's more than a decade old. That's when conventional storage-tank water heaters tend to fail, leaving you with a wet mess.

You can replace your water heater with another storage-tank model for between $500 and $1,500 installed. Better yet, spend between $1,500 and $2,500, including installation, on a gas tankless water heater. It takes up half the space, lasts twice as long, and will save the typical homeowner about $115 a year on water-heating costs. Buy certain approved water heaters in 2011 to take advantage of a federal energy tax credit that'll reimburse you up to $500.

2. Think pink
A few rolls of that familiar pink fiberglass insulation could save you a lot of green. In cold climates like the Northeast, getting an attic up to recommended insulation levels could lower energy bills by $600 a year. Blown-in cellulose or fiberglass insulation can work equally well, depending on your attic. Consult a qualified contractor.

Figure you'll pay a contractor between $1,000 and $2,500 to insulate your attic. Costs vary based on square footage, attic accessibility, where you live, and insulation type. Add insulation in 2011 and qualify for a federal energy tax credit worth up to $500. The tax credit excludes installation, so ask your contractor to separate materials cost and labor cost on your invoice.

3. No pane, no gain
Replacement windows offer a lot to homeowners: energy efficiency, aesthetic appeal, low maintenance, and high resale value. Unfortunately, those benefits come with a steep price tag. High-efficiency replacement windows that qualify for a federal energy tax credit cost between $500 and $1,000 apiece installed, so you're looking at spending $10,000 or more to outfit a typical home.

Budget-minded homeowners can get similar energy savings--15% to 40% off heating and cooling bills--at a much lower price by opting instead for tax-credit-eligible storm windows. Storm windows, which work in conjunction with existing windows to lower energy consumption, cost between $100 and $300 each installed. Adding storm windows to a typical house takes a day or two, vs. two to three days for replacement windows.

4. Give your garage a facelift
Homes with prominent garages can benefit greatly from a curb-appeal standpoint from the addition of new garage doors. Standard doors usually come in wood or steel. It costs between $550 and $1,650, including installation, for a single door. A double door runs between $800 and $2,500. Custom garage doors cost more, as do heavy-duty aluminum doors.

5. Emergency power to the people
A blizzard sweeps in, the lights go out, and you're left with no heat until the utility company can fix downed power lines. Estimated wait time for repairs: two days. What's a resourceful homeowner to do? Crank up the portable generator, that's what.

Portable generators cost between $500 for a 3-kilowatt model to $2,000 for a 10-kilowatt model. Larger units should be able to power a heater, some lights, the refrigerator, and a few other essentials for as long as you can keep the generator supplied with gasoline. A pricier alternative is a permanent standby generator that's hard-wired to your home's electric grid. Standby generators start at around $4,000 to $5,000, though prices can escalate quickly.

Say you got a refund and it's something less...stay tuned for other ideas costing less.