3. Make the Most of Your 401(k)

Before you deposit money into your 401(k), find out if your employer matches contributions. If they do, take advantage of it to the fullest extent. If your employer matches 5 percent, then (if you can afford it) allocate 5 percent or more of your paycheck to the 401(k). After all, a company match is free money, and shouldn't be passed up, says Michael Rubin, author of 'Beyond Paycheck to Paycheck.'

Also, when you're picking the investments in your 401(k), make sure you're diversified with funds that have domestic and foreign stocks and bonds. As you approach retirement, move from aggressive investments such as high-growth tech funds to more conservative ones like bonds. One more thing to keep in mind is that the earlier you enroll in a 401(k), the better off you'll be when you retire.

Savings: A 25-year-old who contributes $300 per month to his 401(k), assuming a 6 percent return and a company match of up to 6 percent of his salary, will have $920,142 at age 65. But the person who starts at 35 will have just $470,043 by 65.

Click here for more ways to get the most savings from your 401(k). Or click here to watch a video on saving for retirement.