Budget tours, day tours or self guided help

Hi there!
My wife and I are visiting Israel for 2 weeks landing in tel aviv July 18 and leaving August 2. We would like to do a tour but the prices seem out of our budget (most that we have found are well over $1000). Lonely planet is for independent travellers, which is why we like it, so we're wondering how budget travellers with independent habits have navigated Israel, soaking in its ancient history and beauty.

We are recent grad students and devout Christians interested in visiting important old and new testament sites. We are willing to stay in budget accommodation and take shorter tours (anywhere between 1 -8 day tours). We are drawn to professional tour guides and realize that the prices are government controlled to a point.

Does anyone have any ideas for inexpensive tour group companies? Would you recommend that we do day tours in specific spots and doing everything else independently? Do you have some other self guided ideas, or self guided books that could be an inexpensive option?

Thank you!
Kristine and Matthew

Buy a guide book or two and take yourself around. Start by reading all the old threads here. Lots of info there. Its not necessary to go on a guided tour
If it was me I would spend the first week in Jerusalem. Get over jet lag and lots to do. There are lots of one day tours that go out from there. Lots of walking tours through the old city as well.
Besides as everyone knows Jerusalem is the center of the universe.

Check out hostels in the old city for cheap accommodation. there is info on here as well as in the guidebooks.

I'm not sure what you call budget accommodation but the Christ Church Hospice is around 100$ a night. Its right inside the Jaffa Gate in the old city
http://www.cmj-israel.org/dnn/CMJ-Ministries/Christ-Church-Guest-House/Guest-House-Overview

Actually I just checked and its around 170$ a night.

http://abrahamtours.com/tours/northern-israel-4-day-tour/ their hostel is excellent in Jerusalem. Their tours and day trips are self guided and not with a licensed guide. Also check out their sister hostel in Nazareth http://www.fauziazarinn.com/ bear in mind there are at least four other backpackers in Nazareth. But IMO Tiberius makes a better base.
http://abrahamtours.com/bus/
Many places are easily reached inexpensively by public bus or train.

I am concerned that you appear to still be looking for budget accommodations. Israel is not a country where you can just go and 'wing" it in terms of places to stay. Hostels frequently are booked solid if you just come in off the street. You need to make reservations before you leave for your trip.

Hi,
I think you should approach this issue differently. First, gather relevant information and build some framework. For example, in many offical touristics site in Jerusalem, you can have written information as well explanation from the workers there. This is true for many other places like Masada, or other national gardens. Second, seak for tours only for specific places. This way, I think you could be able to decrease your expenses.