That budget is a tough one... Time to visit auctions and keep the bids down...
The best money I have spent is on good gauges and squares. But even that would blow your budget. The gauges and squares allow you to judge the accuracy of your work and strive for improvement.
For example - I have a Stanley combination square - should have bought the Starrets -- when I had the money.
Got a set of angle gauges (blocks of metal with precise angles) from Lee Valley -- to set up the saws correctly -- now I waste less wood and sand and plane a lot less now. Also -- with the saws set correctly -- I can do some projects quickly that were very difficult before.
Go to auctions and be frugal - not cheap. :-)
Been there with that budget - gave up lots of luxuries to get better tools.
Before you spend a lot cruise
Then make a list of the fundamental tools and get them as you can spring a few bucks over time. Spend the money to get something to build a clearly defined project. Preferably choose projects that require things you will use repeatedly.
Find a friend with a table saw and figure out what you can trade for some help and some time. If they have a band saw as well treat them real nice - cause you can re-saw lumber and bring down your wood costs.
And as someone said - take a wood working course that allows you to use the shop tools.
Money -- wisely used -- can bring a lot of happiness. :-) The problem is achieving the wisdom to know how to spend it. You can achieve wisdom by learning and thinking - or making mistakes and learning from them -- different strokes for different folks.
And before you wreck wood, finish it wrong, or break tools -- read the posts in this group - and ask if you cannot find the question already answered.
Learned hundreds of th> I am just starting out in the world of woodworking and I'm quite