Turkey on $500/week is very doable. Stay in hostels/budget hotels ($15–$30/night), eat at lokantas and street food ($10–$20/day), use buses instead of flights, and focus on free or cheap activities.
Best for most travelers: Stay in budget accommodation, eat local street food and lokantas, take buses, and skip the balloon ride. Turkey offers incredible value for budget travelers.
Buses over flights: Overnight buses save on both transport and accommodation. Istanbul→Cappadocia overnight bus: $10–$15 (vs $20–$70 flight + taxi + hotel night)
Lokantas: Point-and-eat restaurants. Full meal for $2–$4
Street food: Simit ($0.25), döner ($1–$1.50), gözleme ($1–$1.50) — filling and cheap
Free activities: Walking the Sultanahmet district, Bosphorus ferry ($0.25–$0.50), mosque visits (free), valley hikes in Cappadocia (free), bazaar browsing (free)
Skip the balloon: $4–$8 saved. Watch them from the ground at sunrise (free and nearly as magical)
Istanbulkart: Saves on Istanbul transport vs taxis