I am totally new to the long range shooting game and I have around a 550$ budget. I know that's not much, it's for the rifle and scope. I have found the savage model 11/111 with Nikon scope package deal. I'm open to any other rifle/ scope combo within the 550$ budget. I will not be shooting past 500 yards and I will be reloading the ammo (I already reload 9mm). Which cartridge is better .308 or 6.5 for my needs, long range target and hunting?

As mentioned at 500 yards caliber isn't a big deal but much farther and 6.5 will start to edge the 308 for a beginner. 

Your budget might make this tough. Maybe look for a used Savage model 10 and a SWFA fixed power scope

I have looked at Howa rifle packages, but the scope that it comes with isn't as good as the Nikon. I can't find any reviews on the scope and the ones on Amazon aren't good at all. It would be nice if I could just buy the base rifle and buy the scope separately, but I don't see that option. Thanks for the reply the more I research the more I'm leaning towards the 6.5 creedmoor, but the barrel life is a negative for me.

Savage Axis line of combos may work for you. Try for an Axis II if you can.

Don't forget about the Burris 10x Mil/Mil scope. I've seen them used for ~$150, and always hear good things about them. I've also been beat by them before in steel matches

Burris Tac rings, EGW bases.

Good luck on finding a $300 rifle, although if you are not shooting past 500yds, then your don't really need a special rifle/twist/caliber for that. Any old quality Savage or Remington in .243, 7mm-08, .308, etc would do the trick with medium weight bullets.

I saw this and had to comment - if you need more than 2500 rounds (conservative on a Creedmoor) of barrel life, then you are looking at putting at minimum $1500 in ammo downrange (another conservative number).

So.....making an artificial budget cutoff of $50-$200 in initial investment really isn't smart if you end up with a "value" rifle or scope that doesn't perform. I see this a lot, and it always ends in wasted time and money. If people would just buy what works right out of the gate, they would succeed instead of flail.

This is always a ridiculous rationalization for going with a cartridge that has a short barrel life. The arguement that Barrel replacement costs pale in comparison  to X amount of money spent on ammo so therefore  buy a barrel burner cartridge, makes little sense. If that is the case, fuck 6.5CM go with the 6CM, flatter, less recoil, better performance. 

I couldn't  care less how much money I spend on ammo, it is irrelevant . I do care though about sending my rifle off every year for a new barrel and developing new loads every year and being without my rifle for 1-4 months.

If you are a competitor that needs to be competitive you don't have much choice, but for 99% of the rest of the people that shoot for fun getting the best performing cartridge isn't  that important. 
OP is talking about 500yds and hunting a LASER rifle is not required. 

Actually, my argument there has everything to do with spending a little more on the rifle and optics and nothing to do with advocating a cartridge. I.e., find a $400 old-school R700 BDL in .243 and put a $300 optical platform on it.

Off-topic, in your case, if you don't care about costs but do care about rifle turnover --- simply pin your recoil lug or buy a switch-barrel model and have your smith chamber up 3-4 barrels all at once. Then order your 10 cases of 6XC Tubb ammo and go start winning ;-)

How often do you shoot?

3500-4000 rounds is what you will see out of a barrel before it's noticeable.

The guys who see the big hit in throat erosion, etc... are also the guys who are good at the long range game and can notice the difference.

I'll say this. When I burn up my rpr barrel, I'll get a new one from LRI and swap it in myself. One of the reasons I went with the rpr vs a 700 action build.

If I spend the money on the ammo - what's the cost of the barrel matter?  

Shit I've been going through 300 rounds a weekend with hornady ammo for the past 4 weeks.

I'm already at +/- 1500 rounds in less than a month.

Factory 6.5 = good .308 in price so why not get the 6.5.

Barrel life is a concern for me too. Ammo cost has .308 cheaper than 6.5, so that is a facter as well.Also a factor is the ease it is to get .308 even in a pinch while 6.5 can only found in the bigger shops.

I load .30-06 as well, so being able to use one projectile for both .30's is also an important factor. Plus .308 does what I need exceptionally well and shooting a Garand is fun.

I will most likely shoot around 50 rounds a month. Thanks for all of this great information!!

At 50-100 a month id get the 6.5 - it really is a great round.

If you say had a backyard range and would burn a ton of ammo weekly then maybe a .308 if it shared ammo with something else you have.

2 words:: Home Lathe.........

If you're not going for large game, I would consider 223. Even with a $230 Primary Arms 4-14x44ffp mil/mil mildot you're almost unable to get a rifle; I'd keep saving and bump your budget to $850.

300 rounds a weekend for the last 4 weeks huh? I'd say you better grab that barrel from LRI.

200 today

100 lined up for tomorrow

My brass ends up on the EE and thus funds another 100 rounds.

I tend to go all in on things.

ETA: yes the LRI is going to be ordered at the end of the month along with go/no go gauges.

Starting fresh, and at that kind of round count, my vote is for 6.5 even at the 500 yard distance. Not so much because you're seeing a huge advantage, but because you're not going to encounter the primary disadvantages either. If you start with 308 now you'll be putting money into reloading it. You're going to eventually upgrade the rifle, given the starting budget, or you'll decide you just don't care. Either way, you were better off starting with the 6.5C. The only folks starting fresh who I wouldn't suggest the 6.5 to are the ones shooting only a few hundred yards but high round counts. You'll be burning up 6.5 barrels and not getting any of the advantages.

Countering all this is the fact that there's absolutely no reason you can't use 308 with great success, people have been doing so for sixty years. Once fired brass is plentiful if you aren't looking for maximum precision. Factory ammo is available almost anywhere. Rifles are available on the used market relatively inexpensively, particularly right now with all the folks jumping on the 6.5 bandwagon.

You're on a good track with the Savage. I'm not personally familiar with that particular model, but in the lower priced rifles the Savages have become well known for being above average accuracy. My 10T in 308 is excellent. I'm one of those guys who burns a fair bit of ammo, but almost entirely at shorter ranges so I'm resisting the temptation to bite the 6.5 apple.

I'm never really one to go against any of the 6.5's, but if you're not shooting past 500 yards, do yourself a favor and get a .223.  I'm 100% serious.  You have tons of factory ammo options and even the high quality rounds are relatively cheap.  Barrel life will be a non-issue and you will get excellent practice reading the wind.

You will hit 500 yards all damn day with a 69gr SMK, you will be able to observe your impacts and shooting .223 is a ton of fun.

If you stick with a Savage, and after shooting for a time where you're starting to enjoy it and want to go out further, you can just swap the bolt head on your rifle and spin xyz caliber barrel on and do it to it.

ETA - not sure if you are allowed to hunt with .223 in your state (I did not account for the hunting aspect).  I'm comfortable hunting deer, hogs and antelopes with .223, but if you're going to be stepping it up in critter size, the Creedmoor is an excellent choice.  I'm a self-professed .260 junky and never thought I would get any of my comp rifles chambered in anything else and then Lapua comes along and drops small primer pocket 6.5 Creedmoor on our laps.  So, I figured between the new Lapua brass and the ability to shoot high quality, super accurate, factory ammo (when I'm being a lazy ass), I opted to get my new build chambered in 6.5 Creedmoor.  I know a good majority of the 6.5 dope off the top of my head, so whether it's a .260 or a Creedmoor, I think I'll be okay.  I shoot with some dudes who shoot the latest and greatest 6mm super duper long range precision heat seeking shit, so I do feel somewhat antiquated with my .260's!! HAHAHA!

Not to derail but FIN,

I am looking at a setup similar to yours and getting into 6.5.  What factory ammo have you been going through that fast?

Hornady American Gunner 140 grain.

Buds or sportsmans outdoor super store has it for $48 per 50

I think I'm nearing the end of my barrel life. Had to dial an extra .3-.6 mil on elevation this morning at 500,750,&1000. Would assume the fps loss is due to throat wear. Accuracy is still there once corrected for.

@FALex a barrel from PVA is on order

Another vote for the 223, get a 1-7  or 1-8 and run heavy bullets. I have been having good results from the 90 gr Sierra at 600 from a Savage F-TR 1-7".