Personally, I don't cheap out on sharpening because it only leads to frustration. Buy once, cry once is my motto.
I also prefer waterstones because I have found through LOTS of sharpening that they produce some of the best edges while also being very efficient.
Sticking with a budget I would recommend the King 1000 and a leveling stone. This single stone option will keep things simple and allow you to learn/master one stone. Keeps you from being confused with a progression of stones and allows you to learn at a faster pace.
On the other end of the spectrum we have a 3 stone set. The idea of a 3 stone set is it provides you with all the basics for sharpening, a Coarse, Medium and a fine stone will allow you to grind, sharpen, and finish an edge. This is also the more costly option but gives you all the tools needed to repair and sharpen edged tools.
I like to break down the sharpening set even further. I use two stone set with a lapping/grinding plate, this is generally a mix of coarse and medium stones that produce more aggressive edges which is ideal for cutting tools that get used a lot.
If you couldn't already tell I like Shapton waterstones. They are fast, efficient, wear slowly and produce very sharp edges. My typical recommendation is for the 500 extra thick and 2000 Glass stones with an Atoma 140 for setting bevels and lapping the stones. They are top of the line stones so it's not something you will outgrow.