Cramer's 'Mad Money' Recap: How to Build Long-Term Wealth

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"Stocks are just one part of making yourself extraordinarily wealthy," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Although stocks are the most important element in a balanced portfolio, he cautioned viewers that "there are a lot of other things you have to do if you want those investments to pay off."

Cramer identified three necessities that he said all investors need to have taken care of before they invest in the stock market. He said that while these may be boring, they are part of the gospel he preaches in his book Stay Mad For Life.

The first necessity Cramer said all investors need to address is credit card debt. "You have to pay off all your credit card debt," he told viewers. Given the extraordinarily high interest rates on credit cards, Cramer said even a great investor can have his gain canceled out by credit card debt.

The second necessity all investors need to address is health insurance. He told viewers not to invest a penny in the markets until they have health insurance. "Medical emergencies are the biggest cause of bankruptcy," he said.

Along those same lines, Cramer said disability insurance is the third item all investors should address before they invest. Cramer stressed how easily investors can get "wiped out" by unexpected hospital bills.

"All the precious gains you've racked up in the stock market will be for nothing, because you'll either have to use that money to pay for health care bills or to support yourself while unemployed and injured because you didn't have health or disability insurance," he said.

Cramer took a question from a caller who asked him what it mean to do homework on a stock. Using CaterpillarCAT as an example, Cramer said home gamers need to put in time, reading a company's earnings reports, news stories and annual reports in order to make an intelligent decision on a stock.

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