It's pretty simple. I've decided to get a microphone or preferably a webcam with an inner built microphone on a budget price for self use. I'm not asking for miracle-like quality, but at least enough to record a guitar video, demo or cover with pretty decent quality to appreciate what's being played. What budget item would you personally recommend for below $100, although feel free to mention if I should extend my budget and why. Thanks!
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I dont think the microphones that are built into webcams will be good for anything other than voices.

Maybe you could look into getting a small good quaility handy-cam video camera, a lot of people do that to make videos for youtube and suck, though I don't know much about video cameras and so I don't have any suggestions to which brand/model to buy, just a suggestion.
"In modern music, a lot of people are really stuck on the example, asif it were the idea. It takes millions of examples to articulate an idea, so don't get stuck on the f*cking example." - Joshua Homme, 2008.
I got a shure sm57 and an interface for under £100 used in the UK, you could probably find it cheaper in the US, and just get a cheap webcam. That would give you good sound quality which you wouldn't need to upgrade any time soon.