How Jim Cramer used the stock market to pay for Harvard Law school

When Jim Cramer first started investing, he was determined to do it the right way — by researching stocks and getting an edge on that research.

"Where was I going to get that edge? I figured why not read all of the periodicals that covered stocks," the "Mad Money" host said.

When Cramer graduated college, he worked as a reporter covering sports and government in Tallahassee, Florida, where he made $153 a week. While he did not have a lot of money to spare, he did find a way to save in his IRA and began to buy individual stocks for a personal account.

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After losing money on a few investments, Cramer decided to go to the library and research companies. Eventually, he found a company called Natomas, which had just discovered a large find in Indonesia. He took $300 and bought the stock, and it quickly caught a takeover bid.

Cramer realized from his investment in Natomas that by doing the homework, it gave him an edge over others and helped to arm him with the proper knowledge about a stock. He was hooked on stocks and never turned back. Eventually, Cramer made enough money to pay for his first year of law school at Harvard when he decided to become an attorney.

"I recognized that you can study, and you can pick worthwhile stocks that might be doing better than the average stock and that can, indeed, augment your savings provided you do it right, have some edge and stay current on the company," Cramer said.

Cramer reminded investors to remember the value of homework. If you only know what one person says in the media and you buy a stock, that is not good enough. In the end, it is all about odds, and only hard work and thinking can increase those odds in your favor.

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