You don't have to pick one or the other. I took the plunge to ereading a couple or three years ago. I still borrow plenty of paper books from the library, and occasionally buy a paper book too. If you're not after a modern frontlit device, you should be able to pick up a secondhand older Sony or Kindle for cheap; or a current low-end unlit Kindle. Or a Nook if you're in the States. Or wait for Boxing Day sales.
Also bear in mind that if you're not in the USA and there's a chance your library will start lending ebooks (they're picking them up at a rapid rate), Kindle may not be your best choice.
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