Xbox One 500gb+external hd or 1tb?

I finally saved enough to get the xbox one, now i need help figuring out what to get, should i get the 500 gb version and just get an external hard drive? Or do i get the 1tb version with no hard drive? Limited budget taken into consideration.

I'd get the 1tb then save up for an external.

This ^^^^

I think there is at least one more question to be answered before making the decision. It all really depends on how many games do you plan on buying per year? Will you buy 3-4 games a year? Or will you be buying 1-2 per month? If it is the former(3-4/yr) then a 1tb system might be sufficient for several years. However if the latter is a better fit(1-2/mth) then I'd get the 500g with a 4TB external. I've got about 40 retail games(disc based) installed on my X1 right now, still have about 2.4 TB free space left over.

To add to snowman's post, since you're not getting the Elite bundle, I'd go with the 500GB + external since the 4TB (or the 5 TB from Seagate) external is frequently on sale for close to the price difference between the two XBox SKUs. I have almost 50% left on my 500GB HDD after deleting some games I'm not playing anymore, but that still leaves me with over a dozen games installed that have well over 1000 hours of gameplay, not counting multiplayer games.

tl;dr: If you want the 500 GB is plenty regardless of whether you're going to have tons of games installed since it holds plenty, and because external storage is far cheaper than the 500 GB difference between the two consoles if you need the storage later.