Invest in retirement accounts. Retirement accounts may be the most popular form of investment for the common man. Although there are numerous distinct retirement accounts that remain safe and provide good returns for the investor, none are more popular than 401(k) and Roth IRAs.

• Your classic 401(k) retirement account is set up through your employer. You determine how much of your paycheck you want deducted — before taxes — and put into the retirement account. Sometimes, the employer will even match the amount that you put in. That money is then invested in plans, as in stocks, bonds, or a combination of the two. As of 2013, you can contribute a maximum of $17,500 from your salary into your 401(k) each year.
• A Roth IRA, or Individual Retirement Account, is a retirement plan to which you can contribute up to $5,500 in pre-tax wages yearly. The first great thing about Roth IRAs is that if you don't remove the money in your account before you turn 60, it isn't taxed. The second great thing about Roth IRAs is that it generates compound interest. That is, the interest that you make gets re-invested into your fund, generating more interest, and so on. A 20-year-old who makes a one-time contribution of $5,000 to her Roth IRA will have $160,000 (assuming 8% return) by the time she retires at 65, without ever lifting her finger.