So to begin with, I am a beginner/intermediate guitar player at this point, and I have two guitars. One is a cheap, terrible sounding Squire Strat, the other a Yamaha F325 acoustic. Like I said before, the squire sounds completely awful. The terrible amp it came with doesn't help either. My acoustic, on the other hand, sounds like it could be $400, and I have played friends' guitars two times the price that don't sound anywhere even close when it comes to tone and depth.

Anyways, here's my dilemma. As of late, I have been getting really into finger style acoustic guitar, and it is probably 80% of what I practice nowadays. It's what got me back into guitar after a 2 year hiatus, and it's what has made me really love the acoustic guitar. But, I have also been interested in playing the electric guitar again, but due to my crappy amp/guitar, my progress is little to none with the current rig. After having played my friends' MIM Strat whenever I visit for the past couple of years, I have decided if I am to get an electric, it would be an MIM HSS Fender Strat.

So I have two choices, either get an amp/MIM strat for about 600$ total, or get an acoustic at the 500+ range (I have been looking at seagulls and other more finger style oriented acoustics). I have great interest in both, but the thing is my acoustic guitar is not holding me back at this point. I would upgrade simply because I'm looking for a better tone/more comfortable guitar for my play style. In comparison, my electric is basically unplayable and no fun what so ever. I'm torn between the two, because as much as I would like to get a nice electric and finally start expanding my horizons, my heart lies in finger style acoustic, at least for the time being.

Wow, this was a long post. Sorry for making you read so much, I tend to drag on sometimes. Also, this is my first post on the site, so hello everyone.

Thanks for the help ahead of time!
If your acoustic isn't holding you back and your electric and amp are, then that is the way to go - get an electric. This is only if you are equally interested in both electric and acoustic like you say.
you're likely going to have to buy a mim strat anyways but start with just the amp. then plug the squier in it and see if the guitar's really that terrible. because the amps make anything sound bad sometimes. but you should probably still get the mim strat.
Alright, I have pretty much undoubtedly decided on getting the Strat, after much consideration. The new amp will be acquired during the holidays, so I'll give the squire a try (although I won't expect much from it, to be quite honest). Now I'm trying to decide between SSS and HSS, so if anyone has some input on that, it would also be much appreciated. Anyways, thanks for the help everyone.