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Gumusluk is a good budget travel alternative in Bodrum. You can stay in pansions (BB) and enjoy the peace in this small fisher village. There are plenty of fish restaurants which make cheap lunch menus but in the evening fish is not a budget dining choice. Gumusluk is so special that you can "walk" to the Rabbit island from the ancient walk way. Gumusluk has a music group which play ethnic music with violin, flute and rythim instruments. Hope the group is still there. They were giving a concert once a week in an ancient church up the village. There is not much to do other than enjoying the sea, snorkelling, silence, sea food, sound of the waves and wonderful sunset. For people who like clubbing, Gumusluk is not a good choice because it is one hour to Gumbet or Bodrum's center. Yet it is like 20 minutes to Turgutreis where there are bars to drink and dance in the evening.
Bodrum does not have to be expensive. Use the dolmus for getting around. About 1.5YTL a trip and there's plenty at the bus station. The pansions can cost as little as £5 per night with private facilities. Apartments can be rented fairly cheap, cooking indoors is a great alternative for eating out. In high season, an apartment can be rented for around £150 a week for 4 people.