which should be the first thing somebody buys when they want to upgrade their setup. and amp or a guitar?
If your guitar is unusable, then a guitar. If you're happy with your guitar, then get an amp first.

Your amp (assuming no effects) is responsible for like 75-80 percent of the sound you hear, so you'll want to shell out more on that.
i think im going for an amp. my guitar is a pretty crappy squier but my amp is even worse ..

so its either a MIM strat or a 15-30 watt tube amp

i think im going with the amp

^ Thanks for the help
Well at the same time, you're not really at a stage where it matters a terrible amount what your sound is. If you feel your guitar might be holding you back playing wise, then you might invest in a new one.

But Squier's, while pretty bottom end, are generally a solid guitar that can last you a while and are still playable, so yeah, go for an amp.
Amp first. A kick ass amp will make even a crap guitar sound ok, and make a good guitar sound great. Unless you have a total junk guitar now and can't play it.