I'm just a beginner also, therefore, my advice might be of less value than others. In the past I tried to learn with cheap guitars and/or amps, and was less than satisfied with the results. I've chosen to follow some advice that was given to me, and I'm much more pleased.

Get good equipment to start with. That doesn't mean that it has to be B.B. King quality, but it should sound good, look good, and feel good, but most importantly it should make you feel good.

There's nothing that will ruin your fun and determination quicker, than poor quality equipment. Good equipment will "call to you". You'll want to play it, and therefore, will continue to practice and improve.

Your budget doesn't rule out good equipment, especially if you're willing to look at used items. For that I would suggest taking somebody with experience with you when shopping. They can also help get the price reduced.