Here is a pro-fun suggestion. It may not exactly be about a direct path to the highest upgrade, but as implied by the budget of the OP I actually think it will in the end be a good milestone in the ascension to higher audio:
(1) Upgrade to an Ortofon 2M Bronze. It's a noticeable upgrade without being a quality mismatch with a budget turntable.
(2) With the rest of the budget, get a tube phone preamplifier. Pro-Ject makes a bunch but the most fun I had with a tube phone preamp was the Yaqin MS-12B. Not the quietest in the world, but the ability to find decent old stock 12AX7 and 12AU7 tubes (which can be pretty cheap) and roll tubes, change sounds, is a ton of fun. And you can use the thing as a line level preamp too!
Overall there will be some initial sound improvement with the potential for more as you find tubes.
(1) Upgrade to an Ortofon 2M Bronze. It's a noticeable upgrade without being a quality mismatch with a budget turntable.
(2) With the rest of the budget, get a tube phone preamplifier. Pro-Ject makes a bunch but the most fun I had with a tube phone preamp was the Yaqin MS-12B. Not the quietest in the world, but the ability to find decent old stock 12AX7 and 12AU7 tubes (which can be pretty cheap) and roll tubes, change sounds, is a ton of fun. And you can use the thing as a line level preamp too!
Overall there will be some initial sound improvement with the potential for more as you find tubes.