If you are on a budget, but still want to buy a decent guitar, you should look into purchasing a used guitar. For little money you can buy a quality guitar that will be able to suit all of your needs.
Used Fender basses or used Fender Stratocaster guitars can be had for relatively cheap compared with buying a new one. This is the route that a lot of people go when they are looking for their first guitar. The best place to find a used guitar is at a music store that is specialized in selling second hand equipment. If you can't find a store like this in your area, you may also want to search the internet. There are hundreds of online stores that sell used instruments.
Used, cheap electric guitars are also a top seller. Brands like Ibanez, Squier or Epiphone can be found for very little money. Used Gibson guitars or a second hand Fender Stratocaster will cost you probably more, but will still save you a lot of money. In return you will get a top quality guitar which will last you a very, very long time!
You may also be able to find used guitars at a flea market or garage sale. The best way to go about doing this is find a large flea market in your area, and frequent it as often as possible. You will eventually come across what you are looking for.
Many people have also turned to eBay in order to find a second hand guitar. EBay offers hundreds of guitars that you can bid on. The best thing about using this service is that you can keep an eye on each listing, and only purchase what you can afford.
A used guitar can be a great buy for anybody that is just learning, or anybody who simply wants a new guitar. In most cases you can buy a second hand guitar for half the price it would cost you when buying it brand new. Ok it probably will have some scratches on it, but the quality and the sound of the instrument will still remain the same and that's what counts!
If you know where to look, and stay persistent you should not have any problems at all finding a guitar that suits your needs. Remember, stay patient until you find the guitar that suits your needs and fits your budget.