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Budget Microphones for Recording Acoustic Guitars

I don't have much of a budget but I want something better or rather more suited than the AT-3035 which I use for vocals. I hear good things about the SM-57 (my budget is about the cost of one, or $100) but not sure if that extends to Micing an acoustic guitar. I'd like to blend my pickup with it to get a nice mix of a sound.

Best budget mic choices

Hello,
I'm new here and have taken my time to read many posts before asking my question.
I have done plenty of live sound over the years, but don't know much about recording. I'm wanting to record myself and some friends - mostly acoustic / folk-rock / celtic, but one guy likes to do electronic and I figure he'll be in the "studio" (if it ever earns that name) at some point.

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