Quote Originally Posted by indysteel View Post
I would suggest looking more closely at "flat bar road bikes," which often cost a bit less or start keeping an eye on Craigslist and eBay for a decent used bike.
^ that. If you know your size and basic fit there are good deals at bike swaps, some stores sell used such as trade ins or their "rental fleet", bike kitchens and other non profits have pre-loved bikes, and of course Craigs and Ebay.

If the bike you have fits and you like the frame consider upgrades. New wheels are the most cost effective thing to do. But if the frame has serious rust as you imply then perhaps it's best to go for a new bike.

You can always keep the old one as a winter trainer