We begin this first installment of Money Talks with the story of rapper MC Hammer. In the early ‘90s, “Hammer,” as he was famously known, was on top of the world thanks to his booty-shaking hit “Can’t Touch This.” He made tons of money and spent it on multi-million dollar homes, expensive cars and closets full of stylin’ baggy pants. It was a true rags-to-riches story, and it seemed the good life would never end.

Six years later, after a trio of increasingly unsuccessful LPs, Hammer filed for bankruptcy.

What can we learn from the demise of Hammer? One, it doesn’t matter how much you have, it is still possible to lose it all—and quickly, at that. Two, just because you’re making cash now, don’t assume that you’ll always be rollin’ in it. (Plus there’s this thing called old age, which will affect your ability to earn money.)

Everyone, even pop stars (especially pop stars), should save a bit for the future. Even if you’re in your first job and the pay is lousy, you should still get in the habit of saving so that you’ll have a substantial nest egg for those rainy days or for future investments. Here are some options.

Stash some away

Saving has always been and will continue to be one of the best things you can do with your money. Instead of blowing all your earnings on toys for your entourage, set some aside. The general rule is 20% of your monthly earnings.

The obvious thing to do is keep the money in a savings account, which won’t earn you much in interest but is safe and easy. If you’re a little more adventurous, you can put your money in a certificate of deposit, or “CD.” You can make a bit more with a CD, but if you touch your money before the time is up (usually for three, six or 12 months), you’ll be penalized. FYI—different banks offer different fixed interest rates, so shop around.

Stocks

You can make a lot of money in the stock market, but you can also lose a lot. You make money two ways: One, you sell stock for more than you originally paid for it. Two, you receive “dividends”—a share of the profits—from the company that issued the stock. When “playing” the stock market, you can choose from doing it all yourself (Internet trading) to having professionals do it all for you (mutual funds [see below])—and everything in between.

Mutual funds are like stocks in that you buy shares, but what you are buying is a share in a “basket” of potential money-makers, things like stocks, government bonds and precious metals. This option is great for people with little time and/or limited trading knowledge and experience.

Gold

Gold these days is hot, hot, hot, with the price soaring to record levels. It is usually popular during times of uncertainty, such as now. Most of us think of Yaowarat gold shops selling necklaces and other accessories, but more serious options include purchasing gold bars or coins. Note that buying gold doesn’t necessarily mean carrying it home with you, if you’re worried about safety or throwing your back out.

Real estate

One good thing about buying real estate is that you can live in your investment. So money that you would be “throwing away” (rent) instead goes toward something you will eventually own. Even if you don’t sell it for as much as you paid (loan plus interest), it’s still a “forced saving plan”—you’ll have money in the bank when it’s over that you might not have if you had rented. One bad thing is that there’s a lot to worry about: getting a loan, mortgage payments, upkeep, depreciation and so on.

Just do it

The possibilities are endless. These are just the basics. Even if you don’t have that much money to invest, keep it simple and in the bank and save up for future investments. You’ll want to set up a separate account for this—and, to avoid the temptation to spend that money in a Hammer-like moment, don’t get an ATM card for this account!