I agree completely - better to have some decent water colours in a set for things that you really care about.
Having said that, i often buy the cheap art sets they have for school children just to see what i can do.
Also, you might want to look into using inks as well. There are some called "water-proof" that are nice.
And of course then there are opaque guache paints as well. I prefer the small tubes of colour and since i do a lot of nature work end up buying the larger sizes of green, yellow, brown, and blue.
As for paper, i use Canson Stonehinge (since i'm a printmaker and almost always have it on hand). It's not much of a real watercolour paper but i like it's texture when i do washes and such. A friend of mine def swears by Winsor-Newton and when i can afford it i love it as well.
If you are lucky enough to live near an art store (notoriously expensive since they don't really get that much trade). Go in and make friends and ask lots of questions - always best if one of the clerks is actually an art student or artist.
And then when you get a "bit ahead" budget-wise order thru the mail. The ads you see on this site are great (Jerry's Artarma and Dick Blick, also Daniel Smith, etc). Shop and compare since they will have sales. Nice to get on their mailing lists.
Also, almost all have some "free postage" deals; eg, Daniel Smith if the order is over $200. Like i sed, you have to squirrel away the money because the postage can kill you. I ordered $20 dollars worth of litho crayons from Dick Blick for a W/S (work/shop) that i was taking and the rush delivery was twice that much.
-- share and enjoy, frank. http://art-squeek.angelfire.com |