Jim Cramer is the host of CNBC’s Mad Money and the author of Mad Money: Watch TV, Get Rich. He is also a director and cofounder of TheStreet.com.

Can I benefit financially from the subprime lending mess I hear about?
If you have 25 percent of your investments liquid and available for buying opportunities, you should be in good shape. The Fed is concerned about disinflation, which is the decrease in the rate at which prices go up. It’s a good time to start looking at products that traditionally never go down in price: your soaps, razor blades, the stuff in your medicine cabinet. When stock sell-offs occur, it’s a great time to buy cheap and max out your 401(k) contributions.

Should I wait a while before I buy a house?
I’m in the market for a beach house, and I have realtors calling me, which is not a good sign. It means they have too much inventory. Prices will go down further, so be patient. A good benchmark to use: Wait until things revert back to 2000 prices, which I think will be sometime in March 2008.

My 401(k) only has one good option. Should I put 100 percent of my contribution into that fund?
Putting all your money in one basket is never good. Almost every 401(k) plan has at least an S&P 500 index type of fund as a fail-safe. Other-wise, look for a fund that has at least a 20 percent exposure overseas and doesn’t have too much money tied up in the financial sector.

What’s the biggest mistake you’ve made with money?
I once believed in the management of Cendant so wholeheartedly I that didn’t realize how corrupt they were. The lesson is you should like a stock but never love it. It’s an unrequited love, and they will let you down when you least expect it. They’re not people; they are just pieces of paper.

My parents have cash stowed away for me in CDs. How can I convince them that they’re costing me money?
I think you need to give them a history lesson. There has never been a 20-year period when Certificates of Deposit have outperformed high-quality stocks, like the S&P 500. If you have money set aside for the long term, it’s tough to make a case for CDs.