First, do not consider a new addition - it is the most expensive form of remodeling.
Work within the existing house perimeter.
Knock down non bearing walls between kitchen, dining and living room -
opening large areas gives the house a totally new look, more light and a different scale of space perception. All this will require only some new drywall (which is one of the cheapest construction materials) and some electrical wire relocation.
Replace old windows with new ones, preferably larger size to allow more light inside.
Kitchen and bathroom are the most expensive areas to remodel.
A good strategy to save money is to replace the counter top and the cabinet front panels only.
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