Why do you want to lower it?
If you just want it to LOOK better and less "grandpa-y" you could swap the wheels out with something that looked sportier. Wider wheels and tires, and either a spacer or a different offset to push the wheels out a little, would make the car LOOK better and fill in some of that wheel well gap. For fun, read posts on here with people arguing about 5x115 vs 5x114.3 bolt spacing and hub-centric issues on these cars. You should be able to find a set of used wheels and tires that fit and really change the look of the car without spending too much money.
If you want to lower it so it CORNERS better, then there are suspension upgrades that can be done, but I'm guessing on a $500 car that just replacing the stock struts and worn out bushings will firm up the ride. Tires are also super important to handling. If you have a lot of time you could get some junkyard thicker sway bars out of sportier w-body models and swap them over.
But honestly, the best thing about your car is the VALUE. You bought it cheap, and it can be pretty cheap transportation for you. Put your next $500 towards maintenance and repairs to make sure it starts, runs, and stops safely. Then a little money on upgrades, but not much. If you throw $2000 at it, sure it will be somewhat nicer but it still won't be a $2500 car, and it won't be nicer than a different car you could have bought for $2500. Feel good that you saved a car from the crusher, and got yourself a comfortable, (hopefully) reliable car.