There are two ways to create a Contact:
Method 1:
Click +Add New in the upper-left of the screen.
Click Contact.
Fill out the pertinent information.
Scroll to the bottom and click Create Contact.
Method 2:
Click on the Contacts page on the left-hand side of the screen.
Click the +Contact button in the upper-right corner.
Fill out the pertinent information.
Scroll to the bottom and click Create Contact.
Note: It's best practice to add at least one Account and create a relationship for each Contact.