Biking for Bronze in Beijing

American Donny Robinson took the first-ever bronze medal in BMX bike racing at this summer's Beijing Olympics. As usual, Cramer was ahead of the curve on calling a winner. He interviewed Robinson on Mad Money way back in April.

Robinson may be a champion athlete, but he's also a typical twentysomething looking for smart ways to invest his money and prepare for the future.

Cramer first recommended that Robinson start to look for a home ofhis own (he's still living with the 'rents). The Mad Money host at the time was expecting housing prices to drop another 10%, so he wanted Robinson ready to buy when the opportunity arose.

"I smell a bargain," Cramer said. "When no one else wants them, I'm buying."

Anyone who receives a quarterly performance statement from their stock or mutual fund holdings knows how difficult a market it has been since August 2007. For that reason, Cramer suggested Robinson play it safe with his savings if buying a house is definitely something he wants to do.

"You could lose money," Cramer said, so keep half of your savings in cash and the rest in good dividend-yield stocks like AT&T and Verizon.

But if Robinson would rather focus on pure investing, then he should buy 100 shares of his sponsors: Nike, McDonald's, AT&T, and Kellogg. That way he can balance his hectic training and race schedule with learning the market.

Picking a speculative stock is a good strategy for young investors, too. Cramer told Robinson to look for a potential play while he was in Beijing, maybe a Baidu or Focus Media. The payoff could be great. If not, a loss isn't the end of the world.

"You have your whole life," Cramer said, "to make it back."

Jim's charitable trust owns McDonald's and Nike.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?