Jerry, you sound a lot like
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Jerry, you sound a lot like me!
I started out writing short stories and making music with my computer, but also started tinkering out with video as soon as a friend of mine got a camcorder and we figured out we could use two VCRs to edit.
Play, Pause, Record, Play, Stop… man I can’t believe I ever edited like that!
Anyway, a couple of years ago I had the same question as you, with a similarly restricted budget and went for a Canon 650D. Yeah, it was cool at the time!
I’m still using it now, and with the right lighting and careful camera setup, I can get fairly professional results.
Over the past few years, I’ve learned the full Adobe suite, from Premiere and After Effects to Audition and Illustrator.
It takes a lot of time and can be frustrating, but it can be very rewarding for a creative storyteller like yourself, as it gives you new ways to express yourself.
Don’t fear the consumer-grade stuff, it’s how you use it that counts, especially when you’re just starting out.
The learning curve is pretty much the same (basically limitless), regardless of equipment.