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It’s pretty fair to say that most of us could use an extra $1,000. And there are ways to get it, like cutting back on spending or giving up things we enjoy to bank some additional money.
But let’s face it — that’s not an easy road. You may be eager to score another $1,000 this year, but you also may not want to make yourself miserable in the process.
Fortunately, there are some pretty easy ways to close out the year $1,000 richer. Here are three worth considering.
1. Spend 50 hours working a side hustle that pays $20 per hour
People are often quick to call out side hustles as a quick way to bank extra cash. But the reality is that working a second job isn’t so easy.
However, if your goal is to close out 2024 with an extra $1,000, and you’re able to find a side hustle that pays you $20 per hour, then you’re looking at 50 hours of added work to hit that goal. And since we have about five months left in the year, that’s 10 hours of side work a month — which isn’t so terrible.
Of course, it’s not a given that you’ll instantly stumble upon a side hustle that will pay $20 an hour. But some options you can look at include:
- Pet-sitting, especially if you’re able to provide overnight care
- Babysitting ($20 an hour is a perfectly reasonable rate to command for multiple children or very young children)
- Driving for a ride-hailing service
- Waiting tables at a local restaurant (if you get some decent shifts, you might earn well more than $20 per hour in tips, even if your base wage isn’t much to write home about)
2. Rent out your home for a week if you’ll be traveling
Some people rent out space in their home on a regular basis to help offset their mortgage costs. But that means having to live with a tenant under your roof all the time. And that may not be what you want.
However, if you’ll be traveling for a stretch of time between now and the end of the year, you can look at renting out your home for a bit. If you’re close to a city, beach, or popular theme park, you might easily command over $1,000 for a weekly rental so that even when you take your cleaning and listing fees into account, you’re pocketing $1,000 in full.
Also, when you earn side hustle income, you usually have to remember to set a portion of it aside for taxes (unless you get an hourly wage and have taxes taken out of your paycheck off the bat). And rental income is normally taxable, too. However, if you rent out your home for fewer than 15 days during the year, you don’t have to report rental income on your taxes.
3. Contribute to an IRA
Putting money into an individual retirement account (IRA) is a great way to save for the future. But it could also help you save more money in the present.
IRA contributions exempt a portion of your income from taxes, up to the annual limit set by the IRS. This year, that limit is $7,000 if you’re under age 50 or $8,000 if you’re 50 or older.
Let’s say you’re able to contribute $5,000 to your 2024 IRA and you’re in the 22% tax bracket (which means this tax rate is applied to your highest dollars of earnings). That contribution could result in $1,100 worth of tax savings.
Closing out the year $1,000 richer could work wonders for your budget. Use these tips to hit that goal without breaking a sweat.
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