Starkizzer, I have always wanted to get into throwing clay but unfortunately saw the huge costs up front to begin with.
Now, my big hobby of the past was horses. $500 and $2000 are like drops in the bucket when it comes to how much I've spent on my horses. $500 buys an okay saddle. $2000 wouldn't even touch buying a horse trailer. I don't really want to think about how much money I've spent there!
So, instead I will go with cycling, since that's my newest money-spending hobby.
I spent about $1600 getting my first road bike and getting my basic gear for it. Trek 2.1, speedplay light action pedals, road shoes, cleats, water bottle cage, helmet, jersey, shorts, computer. I've spent some more money since then on my emergency kit and seat post bag, a new saddle, a mirror, and a better tire pump than what I had.
And if someone gave me $500 to specifically spend on my hobby, I'd soooo get more riding gear. Mostly winter gear ($500 would get me a good jacket, some fleece for my ears/neck/head/face, and hopefully some windproof tights), but depending on when I was given this cash I'd potentially spend it on a couple more sets of the gear I wear the most. Since everything is hand-wash only, if I want to ride two days in a row I have to immediately wash my gear when I get home so it will air dry in time to ride again the next day. It gets frustrating.