Want to End 2024 $1,000 Richer? Here's How

If you're like me, you work hard for your money, but you also love getting your hands on free money. Well, what if there were a way to gain an extra $1,000 before the end of the year -- without having to work a side hustle on top of your main job or give up a splurge you enjoy?

Right now, there's a pretty easy way to score a large amount of free cash. All you need to do is take advantage of today's generous certificate of deposit (CD) rates. In fact, if you have enough cash at your disposal, you might manage to close out the year $1,000 richer without having to lift a finger.

You can pocket $1,000 in interest -- if you act soon

There are a lot of different ways to end 2024 with an extra $1,000 to your name. You could:

• Work a $25-an-hour side hustle for 40 hours
• Replace 20 restaurant meals costing $50 each with leftovers from home-cooked meals
• Sell your plasma and earn up to $1,000 a month (no joke)

Or, if you have a nice amount of cash on hand, you could open a 6-month CD with a great rate, sit back, and let that interest accrue.

Now to be clear, to earn $1,000 in interest before the end of the year, you do need to have a pretty sizable amount of money to put into a CD. Right now, as one example, Capital One has a 4.25% APY on a 6-month CD. So if you open one in June at that rate with $50,000, come December, you'll be sitting on an extra $1,051, provided you don't cash out your CD prematurely.

Of course, not many people have $50,000 just sitting around. Maybe you have $5,000. Even so, with that sum, a 6-month CD at 4.25% puts $105 in your pocket by the end of the year. That's not terrible given that you're really doing no work other than entering some information on a screen and transferring money to open a CD online.

Stick with CDs if you want your rate guaranteed

Of course, the one drawback of using CDs is that you usually can't get your money out early without a penalty. So you may be more inclined to keep your cash in a high-yield savings account.

That's not a terrible idea, and you may find that you're able to earn a comparable amount of interest on your money, at least at first. In fact, the Capital One 360 Performance Savings currently has a 4.25% APY -- the same as its 6-month CD. In light of this, you might think the savings account route is the way to go. Why not maintain the flexibility of a savings account over a CD?

But remember, the rate on a savings account can change at any time. When you open a CD, you're guaranteed the rate you lock in until your CD comes due. Given that the Federal Reserve is expected to start cutting interest rates this year, if you stick with a savings account, you might see your APY plunge before 2024 comes to an end. With a 6-month CD, you're guaranteeing yourself a specific high rate through December.

There are many paths you can take to closing out 2024 with an extra $1,000. But my advice is to take the easy way out. And remember, if you don't have enough cash on hand to earn $1,000 in interest over the next six months, earn what you can.

Either way, aim to act quickly. Today's CD rates really are exceptionally high, so it pays to take advantage of them before they drop. But just a warning -- the Fed meets again in June, and if it decides to cut rates then, you may be looking at a less-generous APY on a CD. I highly suggest getting ahead of that and opening your CD now.