Diet can only go so far. Mix exercise in with the diet.
I'd suggest small meals throughout the day to keep your metabolism up. (A meal can consist of one serving of fruit).

Example:
Wake up @ 7:00am
Jog 20minutes-1hour (I find anything under 20minutes does very little for the body. The heart rate needs to increase and stay high for a brief time).

8:00am
Eat breakfest- serving of fruit such as a bannana and/or some yogurt

10:00am another small meal

12:00pm
Lunch Something reasonable, such as steam vegtables with a chicken breast.

2:00pm
Small meal- left overs from lunch, peice of fruit / vegtables, home made granola bar.

4:00pm Optional if hungry, small meal

6:00pm Small dinner. You dont want to eat big before bed.

At some point during the day (useually morning) but since you dont seem like you have worked out much, i would do the brisk jog. Then during the mid afternoon or before or after 6pm I would do a simple workout. Eventually the work out would become more intense but for things to do around the house. Crunches (Not situp, your only going up a few inches) I would do 3 sets of 15 x2 to begin with and work your way up. Your body will tell you your limits. Eventually do the crunches with your legs bent, and extending outward (gets more difficult).

After crunches, pushups to work your upper body/chest. You may not be able to do many, At first I would be lucky if I could do 10 in a row (I can push 150 in a row now). So 3 sets of 10 is your goal at first. and then work up, to 3 sets of 15 > 3 sets of 20.

Jogging or brisk walk again. You don't have to do the crunches and/or pushups. Honestly I would only do them to tone the abdominal area, and tone the chest/arms. Cardio should be your main focus with the diet!
I'm not an expert, this is just from personal experience (what I helped my sister with)

Do some strecthing before any work out, and/or when you finish.

Lay off the sweets, fatty foods, soda pop etc.! Cheating once can mess up your diet for 3 days! So don't do it. No cake, cookies, soda pop, candy bars, sugars etc. Look for "High frutuse corn syrup" and stay away as well.
Water is your best friend! Drink plenty throughout the day, It will also help you not be hungry. Carry a bottle with you.

Again I'm no expert, but I'm sure you will get results with exercise and a well balanced diet.

As someone who has struggled with weight for the majority of my adult life, I can relate! When I was in my teens, I was about 189 pounds. My family is Puerto Rican, so food is a BIG deal! When I wanted to lose weight, I would do things like; go on a juice diet, or only eat one meal a day. Needless to say, they didn't work!

When I met my husband, he really showed me a lot of things that I had no idea about!

First of all...6 small meals a day! Think of your body as a furnace. You have to keep putting fuel in it to make it run. You don't need a lot, but just a little bit here and there to sustain the burn. I promise you, if you try this, you will notice yourself getting more full in less time.

Second - Exercise! I know, I know, this was my least favorite thing in the world to do. I always thought that I would have to run a marathon every day to get into good shape. However, a little bit goes a long way.
When you are first starting out, simply go for a walk around the neighborhood. It sounds small, but it's more exercise than most people were getting before! As time progresses, make those walks longer and maybe a little faster. Since you have a limited budget, I would recommend getting yourself a small weight set that ranges in weight from 5 to 25 pounds. Start each day by doing 20 reps on your arms. Continue to build up to higher weights, and more reps.
One major piece of advice I can offer you is this: The bigger the weights, the better. Please don't let people tell you that you will bulk up! Women don't have enough testosterone in their systems to put on that much muscle mass. At first, you may feel a little bulkier, but as soon as the fat starts burning, with your walking and lifting weights, it will come right off...I promise!!
Also, don't forget a GREAT multi-vitamin. If you need recommendations, let me know.
Sorry that this was so lengthy, but I want everyone to have good information that actually works! I am proof that diet and exercise are the one and only way to safely lose weight, and keep it off. Don't look at eating right as a "diet" plan. Look at it as a new and healthier lifestyle that brings you SO many benefits!!!

Talk to you soon!