I have a budget system, too (WAY more budget than yours!). So maybe my experience will be useful.
I went with the advice I was getting, that the turntable and arm are the most important item in a vinyl playback system. Which meant replacing an old Technics with an old Thorens TD-160 (I told you it was a budget system).
Then I kept following the advice, which was to get as good a cartridge as you could afford. I was enjoying an old Grado with upgraded MZ8 stylus ($200 here in Canada!), which has a very attractive warmth and depth (as others have noted), but when a Linn ASAK came up for sale for $50, I bit.
Then I needed an MC preamp, so I bought a Pro-ject Phonobox S, but it was WAY too noisy. I found a Rotel receiver with an MC stage, for dirt cheap, so I am using this until I can afford a big ticket item like an AR tube phono stage (my Tannoys are bi-amped, with an old Electrohome SET amp powering the aluminum horn-loaded tweeters, and an old Nikko Alpha II powering the woofers. It sounds very nice.
So, long story short:
Best Turntable/arm you can afford
Best Cartridge/Preamp you can afford
Then the regular order - speakers, amps, accessories/room treatments
Hope that helps.
I went with the advice I was getting, that the turntable and arm are the most important item in a vinyl playback system. Which meant replacing an old Technics with an old Thorens TD-160 (I told you it was a budget system).
Then I kept following the advice, which was to get as good a cartridge as you could afford. I was enjoying an old Grado with upgraded MZ8 stylus ($200 here in Canada!), which has a very attractive warmth and depth (as others have noted), but when a Linn ASAK came up for sale for $50, I bit.
Then I needed an MC preamp, so I bought a Pro-ject Phonobox S, but it was WAY too noisy. I found a Rotel receiver with an MC stage, for dirt cheap, so I am using this until I can afford a big ticket item like an AR tube phono stage (my Tannoys are bi-amped, with an old Electrohome SET amp powering the aluminum horn-loaded tweeters, and an old Nikko Alpha II powering the woofers. It sounds very nice.
So, long story short:
Best Turntable/arm you can afford
Best Cartridge/Preamp you can afford
Then the regular order - speakers, amps, accessories/room treatments
Hope that helps.