I've taken a look at the average returns for individuals investing in a 401k. I have to say I was definitely disappointed. With just over 7 percent annual return, allocating couple thousands every year isn't the smartest of ideas. Let's take a look at other alternatives.
Stocks via Technical Analysis --
If Japenese candlesticks are any indicator of future success, investing your month's paycheck wouldn't be such a bad idea. Take for instance FB, CPE. Facebook retraced 23.5% towards the end of December. As volume exhausted itself, it would be a good time to buy. Even if you were to invest $2000, you would see a solid return of 38% return by the first week of May. To play it even safer, March would've been a perfect time to get out.
CPE, a mid-range Oil company would have given you similar returns if you had entered for a short position when volume had depleted in the 2nd week of November, with further confirmation in the early 3rd week. By January, a solid 25% percent return in two months is pretty promising.
Forex - Certainly lucrative but just as risky. With proper risk management and a mastery of psychological trading, this option is far better than 401k. With GBP/USD and EUR/USD breaking out of its sideways trading pattern, 1 solid trade would give you more than the entire year's worth of 401k investment.
401K makes sense only if the employer kicks in as well, then its free money. So i do that anyway. I do stocks because it is there that I have learned how to do better with my 401K. I have lost money doing forex trading. It can go wrong so very quickly particularly if there is leverage involved. Have you looked at trading the crypto currency pairs. There are others here who blog about it.