Use a sharp knife to split the bean in half lengthwise, making sure not to cut to the very end on either end. You don’t want to completely cut them in half - think of it as making a long slit in the middle.
Add liquor to a jar with a tight fitting lid. I like to use a mason jar for this. Add the split vanilla beans to the jar. You may need to fold the vanilla beans in half to fit them into the jar or container you are using. The beans need to be fully submerged in the alcohol. Seal the container tightly.
Store in a cool, dark place away from any direct sunlight or heat source. Let sit for 6 months to 1 year to get the best flavor. Check it every 2 weeks and shake the jar. After 6 months, I recommend tasting it to see if it is ready. Taste every month until it's the flavor you would like.
Once your vanilla extract is ready to use, strain out the vanilla beans and seeds through a fine mesh strainer.
Use a funnel to pour the strained vanilla extract into bottles and label as desired.