Can you get a lot of different books on there?
If you read a lot (and buy your books as opposed to getting them from the library), then the Kindle is definitely worth the money. If you don’t usually buy many books, it might not save you any money, but the convenience factor is still very nice. The price of books on the Kindle is less than the dead-tree version, and you can carry a LOT of books with you, and it is extremely easy to buy new books. Of course, that could also be a downside, at least to your budget… 
If you read a lot (and buy your books as opposed to getting them from the library), then the Kindle is definitely worth the money. If you don’t usually buy many books, it might not save you any money, but the convenience factor is still very nice. The price of books on the Kindle is less than the dead-tree version, and you can carry a LOT of books with you, and it is extremely easy to buy new books. Of course, that could also be a downside, at least to your budget…
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I own a Kindle, and I love it!