I'd echo what Sky King has said and add this: I personally don't upgrade parts that tend to wear out over time until they have, in fact, worn out or are otherwise not functioning. So, before you make any decision on what to spend your $500 on, I'd figure out if anything actually needs to be replaced. Is your cassette and chain worn? How about your chainrings? Have your bike shop give it a good once over.
If everything's in working order, then I'd personally go with new wheels. My first big upgrade on my road bike was a set of hand built wheels. Now, I'm not sure what you'll get for $500 and how they'll compare (especially weight-wise) with what you have now. Just make sure you make that comparison before spending the money.
Live with intention. Walk to the edge. Listen hard. Practice wellness. Play with abandon. Laugh. Choose with no regret. Continue to learn. Appreciate your friends. Do what you love. Live as if this is all there is.
--Mary Anne Radmacher