Wait a minute. First the guy says "budget" and then wants "cost effective".
The answer to the question depends on just how much cutting he wants to do and what -kind- of cuts (straight vs curves), right?
If all he has to do is slice a little bit of 1/4" plate, then some zip wheels in the grinder could do the job. Or some metal-cutting blades in a jig saw or sawzall.
Moving up, just straight cuts can be done with a metal-cutting circular saw blade in a 'standard' 7-1/4" circular saw. A blade runs about $40-$50 or so at retail (Lowes and HomeDepot, by me the H-D usually has a better price on the Freud metal-cutting blade than the Lowes with the Lenox metal-cutting blade). Both Freud and Lenox (and others) make metal-cutting blades that can be used in a circ saw and that can go through 1/4" steel plate pretty well. IF all you have to cut is some straight lines cuts, that is.
Curves and such can be cut with the jig saw or sawzall (with the appropriate metal-cutting blades).
Budget-wise, moving up past what I've mentioned so far and you may start to get into 'real money'. Band saw, oxy-fuel cutting, plasma.
Lots of cuts, straight or curved, can be done with a plasma cutter. Once you get past the initial purchase price, you just use a bit of electricity and some compressed air (which you usually get from electricity used to power the air compressor

) and occasionally replace a nozzle/tip (recent gen Hypertherm plasmas like a PM30 or PM45 can cut 1/4" plate and are pretty darn good on consumable life, but feed then clean dry air).
Oxy-fuel can cut plain steel, but not stainless or aluminum (plasma can cut any conductive material like metal, within the power-thickness limits of the machine), but generally not quite as fast or as inexpensive (on a cutting cost basis) as plasma. Oxy-fuel can also be used to heat and braze or weld things. It still has its place/uses, even with something like a plasma cutter around.
Your choice. Curves-vs-straight cuts and time-vs-money.
:drinkup:
And a MM130 is a bit 'light' on power to weld 1/4" plate steel. With FCAW it can do it OK, but for GMAW it just really doesn't have the muscle to do that thickness of steel plate. For GMAW on 1/4" plate, IMHO you need to move up to a 240V machine at least in the 175 (iffy on 1/4") or 180-amp class (passable on 1/4") or higher.